Jiro comments on Harry Potter and the Methods of Rationality discussion thread, July 2014, chapter 102 - Less Wrong
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It means the immigrant is producing positive net value to a member of the country, but it can still reduce the average utility for every member of the country.
But if it reduces the averages by raising every individual's utility and simply moving people from the "outside" group to the "inside" group who started with low utility, we can hardly call that bad.
(This is known as Will Rogers phenomenon BTW.)
Thanks. I knew there was a name for it, just couldn't remember what it was.