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US Immigration Reform Brings Economic Benefits
Monday, July 25, 2011
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US immigration reform is now being identified as a way to help start new businesses and aid job creation by US commerce secretaries.
In a recent letter from US Commerce Secretary Gary Locke and former Commerce Secretary Carlos Gutierrez, two outstanding key points focusing on the economic benefits of reforming the US immigration system and the possible further detriment to the US economy if Congress fails to act are outlined.
Firstly the Commerce Secretaries pointed out that immigrants have already contributed to the US economy in many significant ways:
"According to the National Venture Capital Association, immigrants have started 25 percent of U.S. public companies that were venture-backed – including Google, eBay, Yahoo!, Sun Microsystems and Intel. Further, immigrant-founded, venture-backed public companies employ 220,000 people in the United States. Meanwhile, immigrant inventors or co-inventors have contributed to more than a quarter of U.S. global patent applications."
However, the United States wastes much of the foreign talent that comes to the US for their studies. Around 400,000 students come to the US each year but they don't have opportunities to get permanent residency in the US. President Obama acknowledged this problem and recommended in his immigration blueprint:
"…foreign students to stay in the U.S. and contribute to our economy by stapling a green card to the diplomas of science, technology, engineering and mathematics (STEM), PhDs and select STEM Masters Degrees students so that they will stay, contribute to the American economy, and become Americans over time."
Secondly, the Commerce Secretaries pointed out that if the U.S. fails to reform immigration in a way that allows the best and brightest students and innovators to retain in the US, it risks dropping the first position in the global race to remain economically competitive.
In the recent global context, Australia, Canada, New Zealand, and the UK have had programs designed to attract immigrant entrepreneurs.
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