Australia has a lot of foreign businesses and it has a lot of immigrants. Both earn Australian dollars and huge amounts would be sent back their country of origin.

His does Australia balance its books on something like this? How do the economics of it work? Would it lower Australian inflation but shortening the money supply, and raise inflation of the destination country as it prints more money to exchange the Australian dollar?

  • puppy@lemmy.world
    link
    fedilink
    arrow-up
    2
    ·
    edit-2
    1 year ago

    If you didn’t have that guy working in Australia, your economy either would’ve shrunk by more than 1000 AUD or you would’ve imported goods or services costing a lot more than 1000 AUD. That guy’s employer pays him 1000 AUD because it is profitable compared to the alternatives.

    If you had locals capable of doing the same work, that employer or the government wouldn’t have sponsored a foreign worker. They would’ve employed a local instead.