Forbes
(Opinion)
By Adam Ozinek
May 25, 2015
As
someone who thinks the case for more immigration is strong, I don’t
often find myself with lots of praise to heap on pieces that are
critical of immigration. However,
I do want to draw attention to a piece by Ramesh Ponnuru in Bloomberg
View that I think is quite admirable for several reasons.
First,
despite his general conclusion being that we should “we should refrain
from increasing immigration and should perhaps even reduce it”, Ramesh
starts his piece by
explaining why popular arguments against immigration are wrong. Arguing
among those on our own side is something that I think is vastly
undersupplied, and also critically important. We are more likely to be
persuaded by those we generally agree with, but more
rewarding and usually strategically smart to argue against those we
disagree with. For that reason we end up ignoring or making excuses for
the sometimes massively wrong claims those on our own side make, and
instead focus on much more marginal errors of those
on the other side.
Second,
Ramesh’s piece deserves praise for calling out by name immigration
restrictionists who are overstating the downsides of immigration. This
paragraph is crucial,
and something that smart immigration critics know but too rarely do
they emphasize:
If
you want to know why middle-class living standards aren’t rising as
fast as they used to, in other words, don’t look to immigration for an
explanation.
Finally,
he doesn’t bury this claim deep inside a piece that is otherwise about
why immigration is actually bad. Yes, his final conclusion is in the end
critical of immigration,
but he goes out of his way to put the wrongness of his fellow
conservatives front-and-center. For this honesty and a good faith
attempt to move the debate away from falsehoods, immigration proponents
should be praising Ramesh.
All
that said, I would also like to make an attempt to persuade Ramesh that
he is underestimating the potential upside to high skilled immigration.
There are a variety
of studies that suggest high-skilled immigration has a significant and
positive effect on productivity, and that a lot more of this could be a
pretty big deal for the economy and not just the “modest benefits” to
society as a whole that Ramesh cites. Here
is a presentation from Giovanni Peri that summarizes several good
studies on this. And from a paper from Peri, Shih, and Sparber, they
find the following decidedly not modest result:
The
estimated elasticities imply that foreign STEM growth can explain one
fourth of the aggregate productivity growth in the 1990-2000 decades,
and possibly 40% of it
in the 1990’s. Our calculation attribute to foreign-STEM a yearly TFP
growth by 0.30% per year in the 1990’s and by 0.10% in the 2000’s. Just
to give an idea, such yearly growth implies that income per capita in
2010 is 4% larger in the US that it would have
been without foreign STEM contribution.
Now
immigration critics will often cite shortcomings of the H1-B visa
program, and there are valid points to make there about this program
which is admittedly imperfect.
But the fact is, the evidence shows that even our imperfect H1-B visas
appear to be boosting productivity significantly. Imagine what a better
designed high skilled program could do.
In
any case though, my main point here is to praise Ramesh’s piece. I
would be very happy to see immigration critics sounding more like Ramesh
and less like the politicians
he chides. It’s much easier to presume good faith and have a productive
disagreement when arguing with someone who has a nuanced and smart
criticism of immigration than with someone who is exaggerating,
villainizing, and repeating falsehoods.
For more information, go to: www.beverlyhillsimmigrationlaw.com
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