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Should Poland Remove Visa Restrictions? [285]
Well take Ireland, it has a very high minimum wage. So some companies have left and some are ending up here in Poland.
A high minimum wage calls for high prices, products as well as labor. Minimum wage that is not harmonized in an area that has free movement of goods and labor will lead to a drop in standard of living for the areas that maintain high minimum wage laws.
I was under the impression that the goal of open borders was to accelerate bringing the new EU countries up to the same level as Western Europe...not to bring standard of living down to the level of Portugal.
The way to build up Poland would be to create a market in Poland. Foreign investments and loans, controlled inflation, harmonization of labor laws, deductions. Even infrastructure investment via distribution of wealth in the form of taxes in rich countries. That's (infrastructure investment) kind of already happening, but it's not presented like that to the people.
The average Pole has managed to get themselves into serious debt over the last 10 years (GDP growth!), that's alright while interest rates are low...
If the objective is to level everything, that's pretty easy. Completely open borders, no tariffs, free movement of labor... Seems pretty easy. If you want to bring the country in question up to the same standard of living, it needs to be done with strategic investment and the creation of internal demand.
Personally, I'd love to see completely free trade without any kind of tariffs. It would bring an end to the current situation of borrowing to consume.