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sanskriti20
Joined: 28 Jun 2017
Last visit: 04 Mar 2019
Posts: 7
Schools: ISB '20 (A)
GMAT 1: 720 Q50 V36
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22 Jul 2017, 06:30
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“The inflow of immigrant workers into our community has put a downward pressure on wages. In fact, the average compensation of unskilled labor in our city has declined by nearly 10% over the past 5 years. Therefore, to protect our local economy, it is essential to impose a moratorium on further immigration.”
Answer -
The author claims that to protect the economy of the country, further immigration must be stopped. He concludes this basis the assumption that inflow of immigrant workers has led to the downward pressure on wages and supports his assumption by the fact that there has been a nearly 10% decline in average compensation of unskilled labour in the country in past 5 years. This argument has many flaws.
Firstly, the argument fails to mention any fact supporting that the decline in average compensation of unskilled labour in the past 5 years is because of the inflow of immigrant workers. There can be other reasons for this decline. It could be that the companies do not require as many unskilled labour now as they did 5 years ago, and therefore demand for unskilled labour in the country has decreased leading to the decrease in average compensation of unskilled labours.
Secondly, the argument concludes that it is essential to impose a moratorium on further immigration to protect local economy without analysing the proper reason for the decline in the economy. It could be that the development in the country has increased the demand for skilled labours and the companies are paying high wages to them. Hence, to compensate their overall expenditure on employees are decreasing the wages of unskilled labour. In this case, imposing a moratorium on further immigration may not affect the economy of the country.
Thirdly, the argument does not compare the status of the country now and 5 years later. Moreover, it fails to mention the development in the country in the last 5 years. Thus, there can be other changes that took place in the past 5 years that led to the decline in average compensation of unskilled labour.
In conclusion, the argument should analyse all the changes that took place in the past 5 years. Examine the requirement of skilled and unskilled labours. Study the ratio of employment of immigrant to their own workers. Thus, proper survey is required to conclude whether the decline in average compensation of unskilled workers is because of inflow of immigrant workers or not.
Answer -
The author claims that to protect the economy of the country, further immigration must be stopped. He concludes this basis the assumption that inflow of immigrant workers has led to the downward pressure on wages and supports his assumption by the fact that there has been a nearly 10% decline in average compensation of unskilled labour in the country in past 5 years. This argument has many flaws.
Firstly, the argument fails to mention any fact supporting that the decline in average compensation of unskilled labour in the past 5 years is because of the inflow of immigrant workers. There can be other reasons for this decline. It could be that the companies do not require as many unskilled labour now as they did 5 years ago, and therefore demand for unskilled labour in the country has decreased leading to the decrease in average compensation of unskilled labours.
Secondly, the argument concludes that it is essential to impose a moratorium on further immigration to protect local economy without analysing the proper reason for the decline in the economy. It could be that the development in the country has increased the demand for skilled labours and the companies are paying high wages to them. Hence, to compensate their overall expenditure on employees are decreasing the wages of unskilled labour. In this case, imposing a moratorium on further immigration may not affect the economy of the country.
Thirdly, the argument does not compare the status of the country now and 5 years later. Moreover, it fails to mention the development in the country in the last 5 years. Thus, there can be other changes that took place in the past 5 years that led to the decline in average compensation of unskilled labour.
In conclusion, the argument should analyse all the changes that took place in the past 5 years. Examine the requirement of skilled and unskilled labours. Study the ratio of employment of immigrant to their own workers. Thus, proper survey is required to conclude whether the decline in average compensation of unskilled workers is because of inflow of immigrant workers or not.
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