Tuesday, April 18, 2017

1,470 economists on immigration

From the Open Letter from 1,470 Economists on Immigration, published last week:
We view the benefits of immigration as myriad: 
• Immigration brings entrepreneurs who start new businesses that hire American workers. 
• Immigration brings young workers who help offset the large-scale retirement of baby boomers. 
• Immigration brings diverse skill sets that keep our workforce flexible, help companies grow, and increase the productivity of American workers. 
• Immigrants are far more likely to work in innovative, job-creating fields such as science, technology, engineering, and math that create life-improving products and drive economic growth.
This is one political letter I had absolutely zero hesitations about signing.

On the heels of Trump's action against the H1-B visa program, and Turnbull's (not to be outdone) actions against the similar Australian 457 visa program, this is all the more important.

This simultaneity of anti-immigrant sentiment cropping up around the world puts a sheen of surreal hilarity on the whole issue, though. H1-B made it easier for Matt's bosses to work in California, and 457 made it easier for Matt and me to work in Australia, yet both sides somehow think that limiting immigration gives them the best of both worlds just because the other side of the mutually-beneficial trade isn't salient.*

This is also why I crack up every time I buy "Australian grown!" produce.

~~~

* Of course there are plenty of immigrants coming from places no one wants to go, but gains from trade arise in other ways than strict body swapping (not to mention the long list of other reasons to support freer immigration).

Saturday, April 15, 2017

I worry this is also happening to Australia

Cute study finding that emigrants from Scandinavia in the latter half of the 19th century were disproportionately individualistic, thus (speculatively) leaving behind a more homogeneous population amenable to Scandinavian-style social democracy.

I worry this will also happen in Australia. There are a multitude of factors preventing Australia from being as innovative as the U.S., from tax laws and regulations that discourage venture capital, startups, and small businesses more generally, to a culture that is a bit more skeptical than celebratory of the crazy people who might actually want to do a startup. But not least on this list is brain drain, in which the best university students are encouraged to go to the U.S. for graduate school and innovative engineers move to Silicon Valley if at all possible.

Anecdotes prove nothing but are memorable, so: In an ironic demonstration of this pattern, my boyfriend Matt is an American aerospace engineer who is now working for his fourth Silicon Valley startup but who had the bad luck of getting attached to someone in a much more global job market who dragged him to Brisbane. He continues to work remotely for these firms* because there are only half a dozen locations in the world where he could work for the type of company he wants to work for (he is admittedly very picky)**. But his boss at Planet was an Australian who defected to the U.S. to work in aerospace but still won the 2014 "Advance Global Australian of the Year" award. Matt left that company a year ago and now has yet another Australian boss based in California at Swift Navigation.

Unfortunately, every sensible city in the world wants to promote innovation and entrepreneurialism in the hopes of becoming Silicon Valley 2.0, and they haven't yet succeeded, so I certainly don't have the answer either. I would think that medicare and a stronger welfare system would encourage startups in Australia (because leaving your regular job is comparatively low risk) but that's obviously not enough. It's great that Australia is so open to immigrants, so hopefully that will prevent Scandinavian homogenization. In the meantime, the U.S. would be well-advised to guard this comparative advantage by embracing the immigrants who want to come put their noncomplacent energy and talent to work.

* Note to students: study STEM so you will also have a skill set that gives you this kind of leverage.

** Anyone in Denver/Boulder hiring behavioral economists? :)