Federal government drowns states in debt

There are two primary reasons why the federal government loves ‘Big Australia’ immigration.

First, immigration boosts the overall economy, as measured by headline GDP. Running a high immigration strategy enables the government to claim that it is an effective economic manager, even when per capita GDP growth is negative (as it currently is) and individual living standards are declining.

Second, immigration benefits the federal budget by increasing the number of workers, personal income tax receipts, and corporate tax receipts (via the larger economy).