While this is likely to lead to slightly higher wages and slightly higher GDP per capita growth (2% rather than 1%), the higher taxes required due to even higher spending will wipe those away and would be even worse than the current situation.
>The thinktank said that initially real wages and disposable income would rise as firms would be forced to use more machinery and become more productive, with GDP per capita rising by 2% by 2040.
>However, these gains would come at the cost of weaker growth in the economy overall as a smaller and ageing population would lead to fewer tax revenues, opening up the gap between public spending and receipts and causing the government to borrow more.
>[…]
>Caswell said that unless the fertility rate picked up, then zero net migration “would not be fiscally sustainable for the UK unless there were significant tax rises, and significant tax rises could potentially choke off economic growth”.
Reminder: half of the public spending increase in the UK since the 1990s has gone to OAPs
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Submission statement: Net zero migration is coming, even without Reform
https://preview.redd.it/gl3cbcyashhg1.jpeg?width=1179&format=pjpg&auto=webp&s=d59872dc474f0c6624dd65d4d50a33b584492641
While this is likely to lead to slightly higher wages and slightly higher GDP per capita growth (2% rather than 1%), the higher taxes required due to even higher spending will wipe those away and would be even worse than the current situation.
>The thinktank said that initially real wages and disposable income would rise as firms would be forced to use more machinery and become more productive, with GDP per capita rising by 2% by 2040.
>However, these gains would come at the cost of weaker growth in the economy overall as a smaller and ageing population would lead to fewer tax revenues, opening up the gap between public spending and receipts and causing the government to borrow more.
>[…]
>Caswell said that unless the fertility rate picked up, then zero net migration “would not be fiscally sustainable for the UK unless there were significant tax rises, and significant tax rises could potentially choke off economic growth”.
Reminder: half of the public spending increase in the UK since the 1990s has gone to OAPs