An Economic Take on Immigration in the US!
Immigration is a political hand grenade today. Democrats and Republicans are deeply divided on how to solve the crisis. Sadly, if they could come together, the economic impact for this country could be massive.
Both political spectrums portray immigrants in ways that further their agendas. Conservatives often label immigrants as criminals, while liberals aim for a humanitarian approach that inadvertently paints a picture of helplessness.
I’m going to blow up both sides of the argument. Because our polarization is harming the future economic growth of this country.
Studies show that immigrants, especially their second-generation descendants, contribute significantly to innovation and economic growth. They start more companies and secure more patents than any other group on a per-capita basis.
Unfortunately, our current immigration system – with roots in the 1960’s back to the early 1900’s – is not designed around helping our nation. It’s designed to keep “undesirables” out.
For instance, most people granted citizenship in the US today are relatives of another citizen. While this might look great on the surface, it was implemented to ensure that more folks that “looked like us” would be granted citizenship in the past. Since the 1960’s, immigration from Europe has declined.
There is no education or employment qualifications for familial visas. As such, a large percentage of these slots are used up by people who are taking more from our system than they are paying in.
The annual quota for citizenship is capped at less than a million. Our population increases by legal immigration by less than 1/3 of 1% per year.
With a fixed immigration quota, this means that qualified workers not related to a current citizen, from a strawberry picker to a Nobel-prize-winning physicist, are left scrambling for the few spots left every year.
I spoke with a doctor earlier this year. He immigrated from India eleven years ago and is still fighting to be an American. He has spent thousands to gain citizenship. You have to shake your head and wonder how bad the system is when a man who wishes to be a citizen cannot obtain that status.
Is There a Solution?
There is a solution to our problems. Sadly, if our politics remain polarized, we won’t ever achieve it.
A three-pronged plan could decrease illegal immigration and see the country’s GDP soar over the next several decades.
Work Permit System. Here is a concept I do not understand. We have millions of illegal border-crossings to work in many fields such as farming and construction. Why don’t we legalize more temporary workers. Most immigrants from Central and South America are not coming to the US to stay. They want to work, earn money, and go home. Let them!
If we had an ID system in place plus wide border crossings for these workers to access the US, we would increase efficiency as well as better track those who are in our country.
Institute a Points-Based Immigration Policy. Many countries already have a points-based system. Canada being the closest one to us. We want people to come to this country who can help make this country better. Creating a system that favors the people we need just makes sense.
It isn’t about granting citizenship to PhD candidates only. We have a massive shortage of plumbers and electricians and other trades in this country. We could easily back-fill these jobs with qualified immigrants! Our needs will change over time. Having a points-based system allows us to customize our immigration pool based on the needs of the country.
Reduce Familial Visas. Being related to someone in this country is nice. But it should not be the primary reason people are granted citizenship. It sucks hundreds of thousands of slots away from other immigrants fighting for citizenship.
This may be combined with an increase in visas and citizenships overall but it is important that we balance familial visas with the immigration of people who could benefit our country.
Summary
We need rational, economically sound immigration policies. If we saw this as a potential benefit, we would be much more willing as Americans to say, "We want those people because we want more money in our pockets." And maybe the politicians would take notice.
To learn more, listen to this week’s podcast:
Listen on your favorite podcast platform: https://bit.ly/YTRep98
Watch on YouTube: https://youtu.be/Qba7nKrD7AM
If you have any questions or concerns, please don’t hesitate to email us at dennis@successfulmoney.com or call us at (800) 453-3209. If you don’t already have a copy of my book, The Biggest Financial Mistakes Retirees Make, you can order it on Amazon or click here, and we will get a copy out to you free of charge!
To receive blog updates via email, click here.
This blog is the opinion of Successful Money Strategies, Inc. and is provided for informational purposes only and is not intended to provide any investment advice or service. Statistics and other figures are accurate at the time of original publishing. Any advice herein should not be acted upon without obtaining specific advice from a licensed professional regarding the reader's own situation or concerns.
The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed. This presentation may not be construed as investment, tax or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.
Always count your change.