I am writing about Mr. M. Zapchek’s letter of Dec. 30, 2015 reiterating his opinion that Canada should be spending its refugee support money differently than by bringing in 25,000 to 50,000 refugees. His arguments are essentially based on benefit-cost couched in terms of helping “more” people with, for example, the $1.2 billion it might cost to bring 25,000 refugees to Canada.
His arguments, like others who believe governments should focus mainly on money, are based on economics. They purport that unless governments are getting maximum value for money spent they are not doing the right things. They ignore the social benefits of doing things like improving quality of life – either immediately or in the future. Steven Harper, an economist by trade, and the Conservatives governed in that manner. Many governments at all levels still do so.
Here’s something for the benefit-cost supporters to consider. A generally used rule-of-thumb is that the value of a human life, on a country-comparative basis, is equal to 120 times a country’s GDP-per-capita. (Variations between Countries in Value of Statistical Life - T.R. Miller, 2000). Using 2013 data the value of a human life in Jordan is $732,000 ($6,100 x 120). The 2013 value of a Canadian life is $5,172,000 ($43,100 x 120). By giving 25,000 refugees a life in Canada instead of the Middle East we are increasing the theoretical actuarial value of their lives by a factor of 7.06 from $18,300,000,00 to $129,198,000,000. Our investment of $1,200,000,000 is actuarially generating a return-on-investment of more than 10,000 per cent! That’s pretty awesome and should make any economist’s heart burst with pride!
While the above benefit-cost is impressive I still think it’s the wrong way to determine if our tax money has been, or is being, spent wisely. It comes down to a matter of opinion. One has to decide if it’s better to actually improve the lives of people or to spend the same money to simply maintain their existing living conditions. Canada has chosen to improve the lives of 25,000 refugees rather than support the mere subsistence of many more in refugee camps. I agree unreservedly with the approach our country is now taking. It not only makes economic sense it’s the right thing to do.
David Merritt, St. Albert
