economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analy ...

, the benefitive treasury measure (BTM) is an

economic indicator An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance. One application of economic indicators is the study of business cycles. Economic i ...

that attempts to correlate a relationship between immigration and government tax receipts/government spending; put more simply, it is cost-benefit analysis of

immigration Immigration is the international movement of people to a destination country of which they are not natives or where they do not possess citizenship in order to settle as permanent residents or naturalized citizens. Commuters, tourists, a ...

on a

macroeconomic Macroeconomics (from the Greek prefix ''makro-'' meaning "large" + ''economics'') is a branch of economics dealing with performance, structure, behavior, and decision-making of an economy An economy is an area of the production, distributio ...

scale. Originally coined in a policy report by G. Ing and R. McGowan of the Liberal Democrat Policy Research Unit, it was later popularised by the

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's Business Editor, Robert Peston, during the

late-2000s recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At t ...

, in reference to the British

Conservative Party The Conservative Party is a name used by many political parties around the world. These political parties are generally right-wing though their exact ideologies can range from center-right to far-right. Political parties called The Conservative P ...

's proposal for a cap on inwards migration, referred to as the "immigrant cap". BTM analysis typically takes one of two forms. The first, growth analysis or 'absolute BTM', charts the net benefits and net costs of total inward migration occurring within the last 12 months (for example, increased welfare payments, tax receipts, and social unrest). The second form of BTM analysis, 'Schengen BTM', has its parametres limited to immigration originating from European Union member states. Schengen BTM is unique in that it as much a political tool as an economic one, having originated from the research unit of a British political party. The result of BTM analysis is displayed as BTM points, with each point corresponding to 0.01% of economic growth, relative to

real GDP Real gross domestic product (real GDP) is a macroeconomic measure of the value of economic output adjusted for price changes (i.e. inflation or deflation). This adjustment transforms the money-value measure, nominal GDP, into an index for quantit ...

; for example, 4 on the BTM scale would suggest annual economic growth of 0.04% (

real terms In economics, nominal value is measured in terms of money, whereas real value is measured against goods or services. A real value is one which has been adjusted for inflation, enabling comparison of quantities as if the prices of goods had not ...

) within an economy, directly resultant of the previous year's net immigration. -4, in contrast, would indicate a contraction of −0.04%, perhaps as a result of social disorder, falling productivity or some other cause. These factors may be described as benefitive treasury indicators, the

socio-economic Socioeconomics (also known as social economics) is the social science that studies how economic activity affects and is shaped by social processes. In general it analyzes how modern societies progress, stagnate, or regress because of their l ...

factors used to predict and calculate the annual BTM. BTI ranges from additional

key worker A key worker, critical worker or essential worker is a public-sector or private-sector employee who is considered to provide an essential service. The term has been used in the United Kingdom in the context of workers who may find it difficult ...

housing construction costs, increases in law and order expenditure (as a result of additional need for

social cohesion Group cohesiveness (also called group cohesion and social cohesion) arises when bonds link members of a social group to one another and to the group as a whole. Although cohesion is a multi-faceted process, it can be broken down into four main c ...

initiatives in deprived areas), to rises in the level of

social security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...

outpayments.

History

In 1985, the member states of the European Union ratified the

Schengen Agreement The Schengen Agreement ( , ) is a treaty which led to the creation of Europe's Schengen Area, in which internal border checks have largely been abolished. It was signed on 14 June 1985, near the town of Schengen, Luxembourg, by five of the t ...

, a quasi-

Treaty A treaty is a formal, legally binding written agreement between actors in international law. It is usually made by and between sovereign states, but can include international organizations, individuals, business entities, and other legal perso ...

that abolished the vast majority of border controls within the so-called

Schengen Area The Schengen Area ( , ) is an area comprising 27 European countries that have officially abolished all passport and all other types of border control at their mutual borders. Being an element within the wider area of freedom, security and ...

. This process enabled freedom of labour movement across the

Schengen Zone The Schengen Area ( , ) is an area comprising 27 European countries that have officially abolished all passport and all other types of border control at their mutual borders. Being an element within the wider area of freedom, security and j ...

, in the spirit of furthering a

Common Market The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lis ...

and a free trade area. The long-term effects of the Schengen Agreement are not yet clear and are still subject to some debate, with British

Eurosceptics Euroscepticism, also spelled as Euroskepticism or EU-scepticism, is a political position involving criticism of the European Union (EU) and European integration. It ranges from those who oppose some EU institutions and policies, and seek refor ...

pointing to "unprecedented" immigration figures as evidence of unintended consequences. The 2004

enlargement of the EU The European Union (EU) has expanded a number of times throughout its history by way of the accession of new member states to the Union. To join the EU, a state needs to fulfil economic and political conditions called the Copenhagen criteria ...

only fanned this debate; particularly-

eurosceptic Euroscepticism, also spelled as Euroskepticism or EU-scepticism, is a political position involving criticism of the European Union (EU) and European integration. It ranges from those who oppose some EU institutions and policies, and seek refor ...

member states became even more concerned that they would not be able to weather the impacts of both increased immigration, and emigration, on their respective economies. Benefitive treasury measure, to try to calm fears by correlating with growth patterns, was a response from the Liberal Democrats, the UK's primary integrationist party, who cooperated with EU researchers work on a preliminary assessment of the effect of the free movement of labour on each member state.Immigration impact, 2006
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References

{{reflist Government finances Economic impact of immigration Demographic economics Economic indicators