Article originally published in the Philadelphia Business Journal on May 11, 2020.
One of President Donald Trump’s policy initiatives has been to significantly reduce legal immigration to the U.S. The architect of this policy is Stephen Miller, senior policy advisor to the president.
In a recording of Miller’s comments to a group of Republicans sent to The Washington Post and published in an article dated April 24, Miller confirmed the administration’s immigration policy.
The Washington Post reported that Miller said, “The most important thing is to turn off the faucet of new immigrant labor … when you suspend the entry of a new immigrant from abroad, you’re also reducing immigration further because the chains of follow-on migration are disrupted…”
The administration’s policy on significantly reducing legal immigration threatens our long-term global competitiveness and economic well-being. In August 2019, I wrote an article headlined, “Why immigrants are the key to American prosperity.” In that article I wrote the following:
Except for Native Americans, everyone has immigrant ancestors or was an immigrant themselves. Immigrants built this country.
A study published in September 2018 by The National Immigration Forum titled “Immigrants as Economic Contributors,” indicates that immigrants have a significantly positive impact on the economy. The study states that “in 2014, immigrants paid an estimated $328 billion in state, local, and federal taxes. Immigrants paid more than a quarter of all taxes in California, and nearly a quarter of all taxes in New York and New Jersey.”
A March 2013 article published in the CATO Economic Development Bulletin is headlined, “Poor immigrants use public benefits at a lower rate than poor native-born Americans.” In 2012, 29% of poor immigrants use SNAP benefits (food stamps) compared with 32.5% of native-born Americans.
Data from the Centers for Disease Control and Prevention from 2008 through 2016 shows that birth rates in the U.S. have been below replacement rate. The birth rate continues to decline for a variety of reasons, and immigrants are filling this gap.
With a birth rate below replacement rate, a reduction in the level of immigration adversely impacts not only economic growth, but also the ability to pay future Medicare and social security benefits to seniors. This is outlined in an August 2014 report published by The New American Economy Research Fund titled, “Staying covered: How immigrants have prolonged the solvency of one of Medicare’s key trust funds and subsidized care for U.S. seniors.”
Those who support reduced legal immigration are ignoring the economic importance of immigrants from all countries – from those countries not so well off in addition to those with a high standard of living and a highly educated population.
Many immigrants are entrepreneurial. They bring needed economic life and vitality to our inner cities – areas long abandoned by factories and blue-collar residents. They are motivated to succeed. Immigrants start small businesses within their communities and create jobs and pay taxes. Some work two or three jobs to generate the needed financial resources so their children can go to college.
Immigrants harvest our vegetables, landscape our lawns and build our houses. Many immigrants enter the U.S. on temporary work visas, which are now more difficult to obtain. This threatens the livelihood of business owners who are deprived of needed workers.
An August 2012 report by the Partnership for a New American Economy indicates that in 2011, of all new businesses started in the U.S., 28% were started by immigrants. The report also stated that immigrants were more than twice as likely to start a business than those who are native born. Immigrant business owners employ 10% of all employees working in the private sector.
An April 2013 article in Forbes magazine headlined, “40% of the largest U.S. companies [were] founded by immigrants or their children,” indicates that between 1995 and 2005, 25% of the high-tech companies founded during this period had at least one immigrant founder. These immigrant entrepreneurs did not all just come from countries within Europe, they also came from developing countries.
Some immigrants or children of immigrants have had a transformational impact on the U.S. and on the world. To name a few: Sergey Brin (Google), Jerry Yang (Yahoo), Pierre Omidyar (eBay), Andy Grove (Intel), Elon Musk (Tesla and Space X), Steve Jobs (Apple) and Satya Nadella (Microsoft). Their companies are on the cutting edge in their respective fields and play a key role in the technical and global competitiveness of the U.S.
These entrepreneurs have created millions of jobs, improved our global competitiveness, changed how we live and put the U.S. on the forefront of the information technology industry. We should remember and appreciate their contributions every time we send or respond to an email or text message, access an app, take a photo with our cell phones, or use social media.
A policy brief by the National Foundation for American Policy dated October 2017 stated that since 2000, 39% of Nobel Prizes won by Americans in physics, chemistry and medicine have been awarded to immigrants. How many immigrants will now be denied entry into the U.S. whose children or grandchildren could be future Nobel Prize laureates and contribute to the advancement of U.S. global competitiveness?
As business leaders, it is our job to speak out and inform the public of the facts. Immigration is critical to our long-term competitiveness and economic well-being.
Stan Silverman is founder and CEO of Silverman Leadership and author of “Be Different! The Key to Business and Career Success.” He is also a speaker, advisor and widely read nationally syndicated columnist on leadership, entrepreneurship and corporate governance. He can be reached at Stan@SilvermanLeadership.com.
