Posted by Ilya Somin:
Germans Vote With Their Feet:
http://volokh.com/archives/archive_2007_05_27-2007_06_02.shtml#1180732182


   This article in the Independent (a left of center British paper)
   documents how high-achieving Germans are voting with their feet to
   escape their government's flawed economic policies (hat tip
   [1]Instapundit):

   F

     or a nation that invented the term "guest worker" for its immigrant
     labourers, Germany is facing the sobering fact that record numbers
     of its own often highly-qualified citizens are fleeing the country
     to work abroad in the biggest mass exodus for 60 years.

     Figures released by Germany's Federal Statistics Office showed that
     the number of Germans emigrating rose to 155,290 last year . . .
     which equalled levels last experienced in the 1940s during the
     chaotic aftermath of the Second World War....

     Stephanie Wahl, of the Institute for Economics, based in Bonn, said
     that those who are leaving Germany are mostly highly motivated and
     well educated...

     Fed up with comparatively poor job prospects at home - where
     unemployment is as high as 17 per cent in some regions - as well as
     high taxes and bureaucracy, thousands of Germans have upped sticks
     for Austria and Switzerland, or emigrated to the United States.

   The article emphasizes the potential damage to Germany from this
   "brain drain," and it is indeed true that the German economy may be
   hurt by losing some of its more productive citizens. In the long run,
   however, this kind of voting with your feet might actually help
   Germany by giving the government stronger incentives to change its
   policies. A government faced with the prospect of losing a large part
   of its tax base has strong incentives to clean up its act. And, as I
   explained in [2]this article, among others, foot voting has
   significant advantages over traditional ballot box voting because foot
   voters have better incentives to become well-informed about their
   options.

   Not all is sweetness and light for the German emigrants, however:

     Switzerland already has a resident German population of 170,000.
     Its presence has even provoked a xenophobic backlash in the
     country's tabloid press. Earlier this year, the Swiss newspaper
     Blick ran an anti-German campaign which spoke of a "German
     invasion" and quoted readers who claimed they found the German
     immigrants to be "arrogant and rude". Many immigrants, however, say
     the benefits of lower taxes and pay up to three times higher than
     at home far outweigh the occasional xenophobic outburst.

   The Swiss backlash is ironic because German-speakers are the majority
   ethnic group in Switzerland already. I was a visiting scholar in
   Germany in 2004. While there are certainly "arrogant and rude"
   Germans, on the whole I found the people to be extremely polite,
   friendly, and helpful - more so than in most of the other countries I
   have been to, Switzerland included. I am a great admirer of
   Switzerland and its political system (which is a model for the
   containment of ethnic conflict through federalism and limits on
   government power). Sadly, however, not even the the Swiss are immune
   to [3]anti-foreign bias.

References

   1. http://instapundit.com/archives2/005849.php
   2. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=916963
   3. http://www.gmu.edu/departments/economics/bcaplan/ssq.pdf

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