Immigration

what is the problem and what should be done?

The United State—a nation of immigrants—is the most prosperous nation in the world because of the freedom of its residents to innovate, work hard, and seek out what the public wants to buy (i.e. to profit). Many of the founders of our most successful companies (e.g., Google, Tesla, Panda Express, Uber, WhatsApp, eBay, Stripe, PayPal) are first generation immigrants. Immigrants are drawn to America because it offers such opportunities, thus we tend to attract the best and brightest. “Immigrants from hell”

Along with the clear benefits of immigration, it poses challenges and some costs as well. The internal migration of people within a country as new jobs or tastes result in people moving into new homes and neighborhoods produces most all the same issues as immigration of foreigners from abroad. We live in communities and have rules (even laws) for our rights and those of our neighbors. What we do effects then and vice versa.

Before moving back to Crystal/Pentagon City in Arlington Virginia, we lived in a 64 home (two acres each) community in Bethesda Maryland with a convenient reflecting very ridged rules for what we could and could not do on our property in order to preserve its natural wooded environment. This is what we were buying. But over some decades more and more families with children moved in with different tastes and desires (e.g., basketball hoops visible from the road). Many community discussions were held, and some rules were adjusted but it required a lot of community discussion.

Our immigration laws are inadequate. We need more immigrant workers and entrepreneurs and better border control, i.e., we need more legal immigration and better control of the illegal sort.  Laws to give immigrants legal status are inadequate and not consistently enforced. “illegal aliens” In 2013 a bipartisan bill to address these problems (The Border Security, Economic Opportunity, and Immigration Modernization Act of 2013) passed the Senate by 68-32 in favor but sadly failed to pass the House. Quoting from Wikipedia:

“If enacted, the bill would have made it possible for many undocumented immigrants to gain legal status and eventually citizenship. It would have increased border security by adding up to 40,000 border patrol agents. It also would have advanced talent-based immigration through a points-based immigration system. New visas were proposed in this legislation, including a visa for entrepreneurs and a W visa for lower skilled workers.[6] It also proposed new restrictions on H1B visa program to prevent its abuse and additional visas/green-cards for students with science, technology, engineering, and mathematics (STEM) degrees from U.S. institutions. The bill also included a $1.5 billion youth jobs program and repealed the Diversity Visa Lottery in favor of prospective legal immigrants who are already in the United States.”

Refugees pose a special challenge (e.g. Afghans who worked for the US or international bodies and are thus suspect to the new Taliban government) as do the “guest” seasonal workers in California’s farmland. If Congress is up for serious work they should get to it.

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Author: Warren Coats

I specialize in advising central banks on monetary policy and the development of the capacity to formulate and implement monetary policy.  I joined the International Monetary Fund in 1975 from which I retired in 2003 as Assistant Director of the Monetary and Financial Systems Department. While at the IMF I led or participated in missions to the central banks of over twenty countries (including Afghanistan, Bosnia, Croatia, Egypt, Iraq, Israel, Kazakhstan, Kenya, Kosovo, Kyrgystan, Moldova, Serbia, Turkey, West Bank and Gaza Strip, and Zimbabwe) and was seconded as a visiting economist to the Board of Governors of the Federal Reserve System (1979-80), and to the World Bank's World Development Report team in 1989.  After retirement from the IMF I was a member of the Board of the Cayman Islands Monetary Authority from 2003-10 and of the editorial board of the Cayman Financial Review from 2010-2017.  Prior to joining the IMF I was Assistant Prof of Economics at UVa from 1970-75.  I am currently a fellow of Johns Hopkins Krieger School of Arts and Sciences, Institute for Applied Economics, Global Health, and the Study of Business Enterprise.  In March 2019 Central Banking Journal awarded me for my “Outstanding Contribution for Capacity Building.”  My recent books are One Currency for Bosnia: Creating the Central Bank of Bosnia and Herzegovina; My Travels in the Former Soviet Union; My Travels to Afghanistan; My Travels to Jerusalem; and My Travels to Baghdad. I have a BA in Economics from the UC Berkeley and a PhD in Economics from the University of Chicago. My dissertation committee was chaired by Milton Friedman and included Robert J. Gordon. I live in National Landing Va 22202

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