One has written previously on the wilful confusion around immigration and population data used for demographic analysis in the Anglosphere, also to dog whistle refugees, immigrants and population growth.
However, requires the misrepresenting of data and research using climate science denial techniques used by entities linked to both Tanton Network and Koch Network, deflecting from carbon or fossil fuels and promoting eugenics; in Australia and US using proxies to replicate previous race based immigration restrictions.
Following is an addition to a previous post ‘NOM Net Overseas Migration – Immigration – Population Growth’ endeavouring to explain the data that is misrepresented in the mainstream by nativist influencers and NGOs, right wing media and political parties, informing above median age and low info voters; see Brexit, Trump and indigenous Voice Referendum in Australia.
The following analysis was done by the Quixotic Quant who disagreed with related analysis presented by a right wing finance blog, partly inspired by Zero Hedge, that did more to confuse subscribers than inform them.
Strategy to dog whistle proxy white Australia policy, put a psychological floor on house values and FOMO ‘fear of missing out’; without any insight, research or data into housing types used by international students, and their housing behaviour, but let’s blame them anyway?
From The Quixotic Quant:
The Missing Million: Is Australia’s migration rate actually high?
It’s time that someone took a proper tilt at Australia’s high migration rate. No, I don’t mean like Dick Smith, splashing millions on an advertising campaign arguing that such a high rate is unsustainable and that we should return down to previous levels. I mean taking a few hours with the data source to figure out whether Australia’s migration rate actually is any higher than it was at previous levels.
The Population Ponzi story tells us that sometime in the mid-2000s the Howard government kicked the gate-open to mass migration to feed the mining boom, then an un-holy alliance between big retailers, property developers, and budget-stressed politicians allowed the gate to stay open ever-after. The sustained influx of immigrants post-boom can then explain most things weird and worrying about our economy, including per-capita real income falling, low wage growth, and high house prices.
The alternative story is that sometime in the mid-2000s the Australian Bureau of Statistics changed the definition of an official statistic called “Net Overseas Migration”. The arbitrary definition they had at the time was malfunctioning, and the next arbitrary one they changed to has been malfunctioning even worse. A blithely ignorant press didn’t even notice the change, let alone query the disfunction that inspired it, so the entire country has been putting their faith soaring population figure that has the integrity of custard. The harder alternative figure shows that our migration rate is actually flat. The confusion probably explains even more weird things, like low nominal GDP growth, low tax revenues, not to mention wage growth and per-capita everything. House prices are worrying, but not weird. Something else simple explains them, but that’s a tilt for another day.
Read this post if you’re not sure which to believe.
Why the NOM graph matters more than most
As far as graphs go, Net Overseas Migration, (NOM) would have to be one of the rising-stars in Australian economic policy debates. The significance of NOM to housing (hence banking, hence sharemarket) is pretty obvious. It also makes a crucial contribution to ‘Estimated Resident Population’, perhaps one of the most important statistics that’s relied on for imputing, scaling and basing a host of other crucial statistics.
But this particular graph’s influence has also risen the tide of confusion swamping the world’s economists, who are floundering to explain the new low-inflation, low-growth new-normal paradigm that has beset the Western World. Everyone’s casting around for a theory. With a slightly selective date-range (say from around 1991 onwards), this graph gives some Australian pundits and commentators exactly what they want: some substantial level-shift that occurs somewhere around the GFC, and hasn’t returned to old normal levels. (Use the zoom/selector tool to cut out the pre-1991 part to soak in the less-than-full picture.)
(Notice the spike pre 2010 that signifies new and 2006 expanded NOM starting to take effect)
You can see why people are arguing that someone kicked the gate open. Apparently in the 2000s Australia suddenly started letting over 200,000 people in every year, when previously we took about half that amount.
Overseas there is plenty of credible economic commentary, particularly in the US and Europe arguing that more migration would be a very good thing for their economies. It’s fair to say that social issues dominate the case against migration, which would probably be economically beneficial if it was legitimised, and very much so if you could select well-educated foreigners who weren’t refugees. Land-borders make that a non-trivial issue in the US and Europe.
Two things set us apart. Sea-borders are one, which means we take control of migration for granted. You don’t have to sound bombastic by proposing to build a wall when you’ve already got a moat. The second is this graph, which appears to show a such a dramatic level shift to a higher level than most other Western Countries. The shift appears so clear that it has sparked something of a dalliance between some respectable economic thinkers, and the ‘Population Ponzi’ theory, which makes out that Australia’s rapid population growth could be masking, or worse even causing, some real economic problems.
The devil’s in the detail. Or maybe just the definition.
I mightn’t have ever noticed the definition shift if I hadn’t attempted to reproduce two columns in an ABS Demographics spreadsheet called ‘Arrivals’ and ‘Departures’ from numbers in two other spreadsheets called ‘Arrivals’ and ‘Departures’. That’s right, the ABS keeps these series in separate places, with different catalogue numbers (310101, 340101 & 340102), with different date ranges, and different frequencies of data entries. One would think they’re keen fend off amateur analysts attempting to check their numbers.
I couldn’t get any of the series to add up together, even after creating a little package of code in R to manage the necessary wrangling to compare the periods. I wanted to assume that some simple addition of the Permanent and Long Term Arrivals would produce the 3101 Arrivals, and same with Departures, and the net of those would produce (or at least closely follow) the hallowed NOM. Please enjoy chuckling at my naivety. In fact the net Permanent and Long Term movements give a trend that’s far higher than Net Overseas Migration. The Net Short Term movements, on the other hand, used to be trivial, but had in recent decades had become quite large and negative.
This demanded the question: how did the ABS decide just how many of those net movements that were classified in one series as ‘short-term’ to blend in with the ‘long-term’ ones to conclude what constituted ‘migration’? I expected somewhere deep inside the explanatory notes that I’d find some arbitrary rule that had to be followed. The explanatory notes had two, with the switch between them occurring just before the ‘level shift’. Here are the direct quotes:
‘22 The ABS developed and introduced an improved method, called the ‘12/16 month rule’ methodology, for estimating NOM. It has been used in calculating Australia’s official ERP since September quarter 2006. The ‘12/16 month rule’ methodology is a result of reviewing the treatment of temporary migrants (both long-term and short-term) who are away from or resident in Australia for a period of 12 months or more.
23 Estimates of NOM based on the previous methods and those based on the ‘12/16 month rule’ methodology are not comparable. The key change is the introduction of the ‘12/16 month rule’ for measuring a person’s residency in Australia, replacing the previous ‘12/12 month rule’.’
“Not comparable” is the correct (one would hope unavoidable) conclusion about such a substantial change in method. But overall I think my gratitude for the ABS spelling out the obvious is overwhelmed by my dismay at their burying this insight in paragraph 23 of the ‘Explanatory Notes’ tab, where only the most determined and tireless of data consumers are likely to encounter it.
Not the slightest mention, flag, warning, column change, name change, or label can be seen anywhere near the actual spreadsheets available for download. So with almost no exceptions users tend to string it together on one axis, in sequence, in one line, in one colour, blithely ignorant of the fact that they’re plotting two different bits of data which are “not comparable” according to the producer of the data.
It’s hard to overstate how bad that really is. It’s the kind of slop which hung-over first-year uni students cobble together on the bus on the way to a tutorial which requires attendance but doesn’t grade exercises. If they do it in assignments, they fail. Yet all of Australia’s leading economists are doing it relentlessly, if accidentally.
How one should, or should not present “not comparable” data
Let’s be geeky and consider how to properly present the data. (Feel free to borrow my code if you’ve been unwittingly guilty of the misdemeanor and would like to produce some better plots.)’
Post continues click through…..
For more related blogs and articles on Australian Politics, Demography, Immigration, International Student, Media, NOM Net Overseas Migration, Population Growth and Statistical Analysis click through:
NOM Net Overseas Migration – Immigration – Population Growth
Posted on February 26, 2018
Interesting article on immigration and NOM net overseas migration by former Australian Department of Immigration Deputy Secretary Abul Rizvi endeavouring to insert some understanding and clarity round the ‘immigration’ debate when most misunderstand, misinterpret or misrepresent immigration and population data.
Immigration Population Growth Decline NOM Net Overseas Migration
Posted on February 1, 2019
For the past 10+ years Australia, the Anglo and western worlds have been obsessing in the mainstream about ‘immigration’ and ‘population growth’ as negative factors for the environment, economy, quality of life, infrastructure, traffic congestion, ‘carrying capacity’ etc. based upon misrepresentation and/or misunderstanding of data, analysis and facts.
However, in Australia as opposed to most nations, pension reform, introduction of superannuation, skilled permanent immigration and net financial contributions from temporary resident ‘churn over’ should maintain a balance between social responsibilities of the government and financial management.
Australian Migration Review 2023 – For Immigrants and Nation or a Nativist Trap?
Posted on May 10, 2023
The Australian Migration Review Report has been published, based on narratives and submissions, but little meaningful grass roots feedback or data to support any grounded analysis for good future reforms?
This post will focus on NOM Net Overseas Migration and major source or factor i.e. international education and students, but for now, not the other main factors including WHV Working Holiday Visas (2nd year) and temporary workers.
Expert Analysis of Australia’s Populist Immigration and Population Growth Obsessions
Posted on July 9, 2021
Interesting article ‘Australia’s facile immigration policy debate’ by former former Immigration Department senior official Abul Rizvi in John Menadue’s Pearls and Swine, parsing through and commenting on Australia’s immigration policies, media and societal narratives that are not well supported by the literature nor demographic research.
These positions are distilled into either for cliched ‘Big Australia’ on the side of the corporate sector or anti-immigrant through proxy issues such as ZPG like ‘population growth’ leading to environmental degradation. However, these are both corporate positions or tactics supported by the same and neither explain why Australia has modest permanent immigration and the more significant temporary churn over via the NOM Net Overseas Migration.
Meanwhile mainstream media and niche outlets obsess about (undefined) post 1970s ‘immigration’ always presenting as negative with few if any positives; although Australia promotes itself as an ‘immigration’ nation and the ‘world’s most successful multicultural society’.
Immigration Immigrants and Public Misconceptions
Posted on February 4, 2020
Harvard University study recently found that people in Western countries, including America, have succumbed to many restrictionist myths…… About 3 percent of the world’s population lived outside its birth country in 1900. And 3 percent does so now. By any objective metric, the modern age has experienced no historic flood of immigration.
Global Population Decline and Rebalance
Posted on January 17, 2024
The Anglosphere, especially right wing media and influencers, obsess about supposed immigrant-led population growth in the developed world, while claiming high fertility and exponential growth; not true it’s a reflection of better human health and increasing longevity.
However, these dynamics are still misrepresented or ignored in media, politics and public narratives based on the eugenics based ideology of Bob Malthus, Francis Galton, Madison Grant and John Tanton; the latter via ZPG Zero Population Growth supported by Rockefeller Bros. Fund.
There is an increasing body of research, knowledge and awareness of population and demography in nations and globally thanks to Jack Caldwell, Fred Pearce, Wolfgang Lutz, Hans Rosling, Sanjeev Sanyal, then recent years Bricker & Ibbitson (‘Empty Planet: The Shock of Global Population Decline’); outside of the UNPD, right wing and faux centrist media, think tanks, politics and influencers.