Reduce World Poverty with free job markets

One of the most persistent problems in our world is poverty – most people in the poor countries are stuck in their poverty. There is only so much that foreign aid and microbanking can do. I suggest that wealthy nations take theĀ initiative to open up their job markets to the entire world.

If every country in the world opened up their job markets, job seekers will flock to countries with the highest pay. The job seeker that meets the hiring requirements and is willing to work for the lowest pay (presumably pay that is double of that of his or her home economy) will get the job. This results in the transfer of wealth from a richer country to a poorer country.

One of the effects on the economy of the rich country will be high unemployment. Employees used to a more cushy work environment will no longer be able to find jobs that meet their expectations. Employers will have much more choices and will be able to lower pay and reduce job benefits without worries that they could not retain talent. Resentful unemployed protesters will descend upon government offices to demand that all foreign workers be sent home immediately.

Meanwhile, the economy of the foreign workers will boom. With the increased remittances, spending will increase dramatically. Villages will work themselves out of poverty, building shops, acquiring farms, investing in machinery and opening factories. The poor families will finally be able to afford three meals a day, and be able to send their children to school. Infant mortality rates will fall as the government has more funds (via taxes) to spend on better healthcare. Crime rates will go down as petty criminals and kidnappers findĀ  legal employment. Sweatshops will close down as an increase in the bargaining power of the poor workers (who can work anywhere else in the world) forces vastly improved working conditions.

As wealth continues to flow, prices will fall in the wealthy countries and rise in the poor countries. Eventually, the world will reach a equilibrium where wages are competitively set everywhere in the world, and living standards are closer to equality.

As a member of a rich country, I stand to lose much personally. But if my losses mean that the world will have much lesser problems, I am all for this solution. The question is, which first-world country politician will dare to advocate such a position for his/her platform?