Assignment: Macro & Micro economics A prisoners’ dilemma is usually a paradox that occurs in decision analysis in which 2people acting in their own individual best interest follow a course of action which does not lead to the ideal outcome. Thus, the characteristic prisoners’ dilemma is usually in such a way that the concerned parties decide to shield themselves at the expense of the other contributor. Consequently, as a result of pursuing a purely logical thinking process to help oneself, the two participants get themselves in a state that is worse than if they had collaborated with one another in making their decisions.
The same case would apply to auto makers while making decisions. Thus the yearly changes will create dilemma for both car buyers as well as the automakers. If there is an increase in prices, it means that the buyers will take longer in making decisions on what models to buy, which may force the automakers to be in a fix on whether to sell more at a cheaper price or sell a few at high price leading to less sales and reduced profits(Van, 2009). The charge that immigrants flood the labor market and drive down wages in the U. S is ill thought and baseless.
The proponents are missing the realism of immigration as well as its role in the future of the US. Rather than sentimental politicking or issue of values, immigration needs to be looked at as an arbitrage matter, a process through which fast aging nations bid for the skills together with energies of newcomers to help keep not only their economies afloat but also their future secure. Maybe it would be much better if the US immigration policies focused less on ethnic constituencies and politics and more on acquiring particular abilities and skills from other countries, more so from Mexico’s rising ranks of skilled and educated workers.
The immigration policy should also focus on bringing in more entrepreneurs. At present, one-fifth of all US enterprises are owned and operated by immigrants, a rise from 12% 2 decades ago. Most of these are in small towns and suburbs, where together, most immigrants locate opportunities as well as better quality of living (Joel, 2012). ReferencesJoel, K.
(2012). U.S. Desperately Needs Immigrants And A Strategy To Get The Right Ones. Forbes, NP. John, C. (2014). The Optimal Number of Immigrants. Economists View, np. Van, J. (2009). The Green Collar Economy. New York, NY: HaperCollins.