NegativeResource ScarcityEconomics is loosely defined as “the allocation of scarce resources between competing ends”. Increasing population through immigration results in a more challenging task due to the increase in competing goals; by definition, a bad economic decision. As the population increases with fixed resources, the amount per capita will decrease, thus resulting in less wealth per capita. Furthermore, the unit cost of natural resource-based goods will potentially increase due to increased supply. For example, Tasmania implemented an electricity generation program due to electricity shortages that uses wind turbines. The electricity generated then travels for miles over cables that cost hundreds of millions of dollars. However, several years ago these actions were not necessary since cheap energy could be obtained through hydroelectric projects. Even though all rivers have been dammed today, other forms of energy are obtained at higher costs to satisfy the growing population. Another example is the use of water. There has been a water shortage since 2007, resulting in inland farmers having less water. There has been consideration of building dams on the rivers of northern Australia and channeling all the water for irrigation instead of letting it flow through open channels. However, changing systems requires a greater economic cost than old methods of obtaining water. Marginal cost increased with population. Wage DeclineAn increase in the supply of labor (through immigration) relative to the supply of capital (fixed in the short run and costly to increase in the long run) and the supply of natural resources (fixed in the short and long run) will stimulate the free labor market with consequent fall in wages. With the increased labor supply, working conditions will also be reduced to normal in 2004, although barriers have been imposed for some skilled worker visas. Evidently the measures adopted are not sufficient to hinder the flow of low-cost labour. In 2003 a report by Bob Kinnaird was published stating that the number of ICT migrants has reached an unsustainable 13,000, around 7% of the sector's workforce, and job adverts for ICT graduates have increased by 80%. % compared to last year. David Crowe concludes that migrants are making working conditions more difficult and that specific workforce hiring such as ICT jobs should remain at reduced levels until the Australian ICT workforce is able to handle increasing levels of ICT migrants, enabling demand from Australian graduates. Another report from the Herald Sun newspaper highlights the gravity of the situation Australia is facing. Written on 21/07/05 John Masanauskas wrote an article further drawing attention to the effects of immigration in Australia..