Hmmm. Upvote because it's fascinating, yet very troubling. I'm as free-market open-borders as one can imagine, so I'm having trouble reconciling this with my world view.
On the one hand, I'd like to think that the benefit from immigration due to a broader base of consumers might bring about enough additional prosperity to offset that decrease in trust.
But on the other hand, a necessary precursor to a functioning market is that the participants trust one another. If the effect is as this short article suggests, then maybe it does cause more damage than good, at least in the short term.
I note that the article is a bit aged; I wonder if any further research has been done.
On the one hand, I'd like to think that the benefit from immigration due to a broader base of consumers might bring about enough additional prosperity to offset that decrease in trust.
But on the other hand, a necessary precursor to a functioning market is that the participants trust one another. If the effect is as this short article suggests, then maybe it does cause more damage than good, at least in the short term.
I note that the article is a bit aged; I wonder if any further research has been done.