Professional Documents
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1 http://www.lbc.co.uk/watch-nigel-farage-v-james-obrien-live-from-1130-90532
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Table of Contents
Glossary3
Introduction
Findings
Unemployment
Crime
12
Education
15
Housing
19
22
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Glossary
Absenteeism A habitual pattern of absence
Aggregate Demand AD=G+I+C+(X-M) - Total planned expenditure in
the economy known by Government expenditure + Investment +
Consumer Spending + (Exports Imports)
Aggregate Supply The total value of goods and services supplied in
the economy
Balance of Payments A record of the financial transactions over a
period of time between a country and its trading partners
Economy Growth - Growth in the economy consists mainly of consumer
spending and investment
Factors of Production Land, Labour, Capital and Enterprise
FDI Investment in the domestic economy in new manufacturing plants
by foreign multinational companies
Full Capacity Is when the economy operates at its Productivity Frontier
(PPF)
Inflation A sustained increase in the general price level
Long Run Period of time during which all factors become variable and
the scale of output can change
Long term trend rate of growth The average rate of economic growth
sustained over a period of time
Marginal External Benefit - The spill over benefit to third parties of an
economic transaction
Marginal Private Benefits The benefit to an individual or firm of an
economic transaction
Marginal Private Costs The cost to an individual or firm of an
economic transaction
Marginal Social Benefits The full benefit to society of an economic
transaction including private and external benefits
Marginal Social Costs The full cost to society of an economic
transaction, including private and external costs
Merit good merit good are those goods and services that the
government feels that people will under-consume and which ought to be
subsidised or provided free at the point of use.
Negative Externalities Costs imposed on a third party not involved
with the consumption or production of the good
Positive Externalities A positive spill over effect to third parties of a
market transaction
Recession Negative economic growth over two consecutive quarters
Short Run Period during which fixed costs and the scale of production
remained fixed
Social Mobility Is the movement of individuals within the given
category in society
Underlying trend rate of growth The average rate of economic
growth sustained over a period of time
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Introduction
Immigration to Britain has been an on-going process for centuries,
but possibly became more apparent with the need for a larger
workforce following World War II. The first arrivals of immigrants
coming from commonwealth countries are now well-established
British citizens (BBC History 2002)2. More recently from 2007 to
2013, with Romania and Bulgaria joining the EU, the number of
immigrants coming to the UK was five times greater. However by
the last quarter of 2013 the number of immigrants entering the UK
is slowing down, linked to the fall of 4,000 in Romanians and
Bulgarians working in the UK3.
Immigration is becoming a political hot potato because political
parties like UKIP have managed to increase awareness in the media
of the problems rising levels of immigration creates in the economy.
Nigel Farage quotes rising levels of immigration is a threat to the
economy4.
However, it is difficult to ascertain how much immigration has risen
by. Migration Watch UK believe that the scale of net inward
migration is now so great as to be contrary to the interests of all
sections of our community. The latest figure shows that 260,000
people settled in the UK in 2014 (Migration Watch UK 2014)5.
2http://news.bbc.co.uk/hi/english/static/in_depth/uk/2002/race/short_history_of_im
migration.stm#1946
3 The Economist Issue 20, Page 28 No flood after all
4 http://www.lbc.co.uk/watch-nigel-farage-v-james-obrien-live-from-1130-90532
5 http://www.migrationwatchuk.org/latest-immigration-statistics
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immigration?
Is there a shortage of housing and an increase in the cost of
result
of
6 Appendix A
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Findings
As explained in the introduction the questions that will be explored
are:
immigration?
Is there a shortage of housing and an increase in the cost of
result
of
Unemployment
In the UK the unemployment rate is 5.8% (December 2014)
compared to earlier in 2014 when the rate was higher at 7.1% (ONS
Statistics 2015)7. Eastbournes unemployment rate is slightly higher
than the national average at 6.6% in December 2014.
Figure 1 shows net migration and % unemployment from 2005 to
2013, suggests that there is not a correlation between rising levels
of immigration and an increase in unemployment in Eastbourne.
7 http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/januaryNet Migration figures and % Unemployment in Eastbourne from
2015/statistical-bulletin.html*All words in bold are defined in the glossary Page
3 2005-2014
6
Figure 1
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Between 2008 and 2009 unemployment was high at 7.6% and 7.1%.
Therefore,
migration
unemployment
was
negative
increased
for
both
by
years.
0.7%.
This
However,
net
suggests
that
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13 http://www.ukipeastbourne.com/local-policies/
14 The Economist, November 2nd 2013 Issue 44
15 Christian Dustmann UCL and Tommasso Frattini University of Milan
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in
the
past
years.
The
secondary
sector
has
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output in the economy is higher and prices are back to P 2 in the long
run.
Figure 2
Overall, immigrants stimulate growth because greater levels of
investment leads to greater consumer spending meaning that
aggregate demand increases accordingly to aggregate supply as
real national output is higher.
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Crime
The
most
recent
figures
from
September
2014
show
that
19 http://www.police.uk/sussex/EE1NH12/performance/
20 http://news.bbc.co.uk/1/hi/uk/4543608.stm
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Figure 4 shows a map of Eastbourne and its different wards. The last
census in 2011 highlights the wards inhabited by a larger proportion
of foreigners. Between those, Devonshire Ward (Town Centre and
Seaside) being the most populated. 30% of Eastbournes crime
occurred in the town centre and 8% in Seaside. Considering Seaside
is the ward with the second highest foreign-born population the
crime rate is relatively low compared to other wards such as
Hampden Park and Shinewater where 11% of the towns crimes
occurred22.
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Eastbourne Map.
Figure 4
group
of
Romanian
and
German
immigrants
as
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crimes
committed
is
the
Express
newspaper.
Furthermore,
this
information
does
not
apply
to
Education
Its obvious that with an increase in population the UK will have to
increase investment in Public Services. Many think that schools and
other public services like the NHS are experiencing overcrowding as
the UK population continues to increase. The general consensus is
that immigration stretches these services. The Balance of Payments
25 http://www.bbc.co.uk/news/uk-politics-27474099
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26 http://www.ukip.org/issues
27 The Economist Issue 44 November 2013 Page 29
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Bourne School for the last 15 or so years, but they have coped
brilliantly28 he wrote.
Bourne School is the only primary school located in Eastbournes
town centre and Seaside. Most immigrants mainly choose to live in
the town centre and therefore send their children to the nearest
school. This is what has caused the school to over populate with
children. However, Mr. Maxwell the schools headteacher has had
full support from Eastbournes MP to overcome this situation by
helping families who live in the town centre approach different
schools around Eastbourne by offering free bus passes to children
who have to travel further than 2 miles to get to school.
East Sussex in figures shows that there are 11,927 pupils in
Eastbourne from which 1,758 are students with English as an
additional language.29 Like many other schools around the UK,
secondary schools in Eastbourne have experienced an increase in
the share of pupils getting 5 GCSES A*-C (including English and
Maths). The percentage change in increase has been higher in
schools that have a higher percentage of SEAL pupils (Students with
English as an additional language). 4% of KS4 students at The
Eastbourne Academy in 2014 were SEAL and 43% of students
achieved A*-C in English and Maths. In 2013 7% of KS4 students at
The Eastbourne Academy were SEAL and 53% of students achieved
A*-C in English and Maths.30
Similarly, an article in The Economist supports this argument. Yes,
schools are under more pressure because the number of pupils is
increasing but overall it is not making it harder for others to learn. A
28 Questionnaire completed by Eastbournes MP Stephen Lloyd November 2014
29http://www.eastsussexinfigures.org.uk/webview/index.jsp?catalog=http%3A
%2F%2Fesfigures01s.escc.gov.uk%3A80%2Fobj%2FfCatalog
%2FCatalog55&submode=catalog&mode=documentation&top=yes
30 http://www.education.gov.uk/cgi-bin/schools/performance/school.pl?
urn=136106
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as
whole
which
include
rising
wages,
increased
MSC=MPC
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Figure 6
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Housing
In the whole of the UK, the foreign-born population has low
ownership rates with only 43% being homeowners32.
Migration is
32 http://www.migrationobservatory.ox.ac.uk/briefings/migrants-and-housing-ukexperiences-and-impacts
33 https://www.gov.uk/government/organisations/department-for-communitiesand-local-government
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Figure 7
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35 http://www.ukip.org/issues
36 http://www.cih.org/research
37 Interview with Neill Fuller 27th January 2015
38 http://www.bbc.co.uk/news/uk-24813467 http://www.ft.com/cms/s/0/c49043a86447-11e4-b219-00144feabdc0.html#axzz3SVMmLq2r
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each
of
these components
will
exceed
government
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Are
schools
experiencing
overcrowding
as
result
of
immigration?
Yes, many schools are experiencing overcrowding due to rising
levels of population as a result of more immigrants coming to the
UK. However, Education is known as a merit good because is under
consumed by society, therefore an increase in consumption enables
the whole society to benefit from the outcome of individuals
attending school in the long term.
A better educated workforce would result in higher wages and an
increase in productivity for firms leading to an expansion in the
economys capacity allowing the government to increase spending
in public services like education to be able to cope with more people
attending schools or using other state services like the NHS.
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Appendix
Appendix A
Questionnaire done by Alvaro Ferreira, responses collected via
Twitter 39 Respondents
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29
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30
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