We Need an Immigration Stimulus

http://online.wsj.com/article/SB124078847516857485.html

Quote:





            Economic recovery and immigration are closely linked, as New York City Mayor Mike Bloomberg also understands. Last month he launched a business-plan competition targeting business and engineering students overseas with winners getting cash and introductions to venture capitalists in the city. "Unfortunately, as we're moving to open our doors even wider to the world, Congress is moving in the opposite direction," Mr. Bloomberg said.<br />

There's a strong case that we need both more skilled and unskilled immigrants. In "The Venturesome Economy," Columbia business professor Amar Bhidé showed that wherever technology is developed, it's the creative application of innovation that builds great businesses. The Web was conceived in a lab in Switzerland, but it matured in Silicon Valley. Mr. Bhidé argues that immigrants at all levels, including as "venturesome consumers," are an important reason the U.S. retains a strong lead in innovation, even as the lead in advanced technology and science has eroded.

At a time when our financial-capital markets are still reeling from the credit bust, the human-capital market remains open for business. Fewer workers will be lured to the U.S. during a recession, but the ones who come will speed recovery. There are costs to immigration, especially in border states with generous welfare programs, but the overall benefit is akin to the advantages of free trade in goods and services.