The Loss of Talent

There is an excellent article in the Economist about the recent debacle with the H1-b visa process that started on April 1. Many of America's greatest breakthroughs and triumphs were the result of talented immigrants coming to this country. Think scientists like Einstein and Von Braun, business people like Andy Grove and the Google founders to get an idea of the contribution these people make to our society. America needs these talented people to create jobs and discover the next big advancements in technology, medicine, and who know what else. This is how our standard of living and quality of life can get even better.

However, we have a bunch of knuckle-head Congressmen that are getting illegal immigration mixed up with the realities of a global work force. Unlike many countries, America does not have to lure people to our shores. People genuinely want to be here. So why restrict the number of H1-B visas? There is no good reason.

Lou Dobbs Does Not Understand Middle Class

I usually do NOT watch much CNN let alone pay attention to it. However, I had time while traveling to watch Mr. Dobbs tonight (at least for a couple minutes). He was commenting on testimony by Bill Gates given today before the U.S. House of Representatives Subcommittee on Science and Technology. During this testimony, Mr. Gates explained how the US education system is failing to produce enough software engineers to keep US companies competitive in a global economy.

The shortage of qualified engineers is forcing many companies, including Microsoft, to look at talent from other countries. This means they must seek H-1B visas from the State Department to bring these talented people to our country. The issue for Bill Gates is the US Government only allows 65,000 of these visas every year. In his testimony Gates argues this is not enough and he is right.

So Lou Dobbs took this testimony as a way to make another point in his crusade about the middle class in decline. His point is bringing in foreign talent is just a ploy to lower the wages of existing Americans. He could not be more wrong. If these "imports" are really good, other companies are going to try to attract them and pay them more. So even if they start out making lower wages, it won't last long. Wages are a function of productivity. The more productive a worker (even a programmer) the more money they will make. Competition for talent, especially in the software industry, will see to it.

So Lou, you are wrong again. This situation is an implication of the short comings of the US education system, not about the war on the middle class. We have to have more math and science education if we are going to continue being the world leader in technology. Until we fix the education system, it is critical to let more talented people become Americans.

We Need More Legal Citizens

According to a November 2007 report from the Bureau of Labor Statistics, the US will have 167 million jobs to fill in 2016.  Today we currently employ about 151 million people.  So where are these 16 million new employees to come from exactly?

The civilian labor force is only expected to grow by 0.8% while the overall participation rate in the labor force is expected to drop from 66.2% to 65.5% through 2016.  These numbers are being driven by retiring baby boomers and a reproductive rate that is basically flat.  Therefore the only way we can meet the future demands of the labor market and produce economic growth is to encourage immigration.

The real problem with immigration is not immigrants but rather the government programs that provide financial aide to immigrants.  Financial aide is a real cost to the tax payers and should be a concern for all of us.  Whether it is medical care, education, food stamps, welfare, or any of a host of programs, our citizens are not prepared to pay for these services.

We must eliminate the government programs that provide aide.  The incentive to come to the US should be to find good jobs, not receive government handouts.  Of course all of this immigration needs to be done legally.  We need to know who is coming into this country given the security of today's world.  Open borders are a threat to our safety and security.

As Americans we do not need to feel threatened by immigration.  There is really no choice but to embrace it.   What we need are fewer government programs that provide financial support and burden the tax payers.  Our great country must continue to attract legal immigrants who are tax-paying, law-abiding citizens and are contributors to society, not takers.