Of all the sad aspects of the stalemate over federal immigration policy, perhaps the worst is America’s failure to take advantage of the fact that so many talented entrepreneurs want to bring their invaluable skill sets to the U.S., which would immensely help our economy and create jobs — especially in the high-paying technology sector.
The powerful boost that skilled immigrants provide the U.S. economy is a matter of record. Research shows 40 percent of Fortune 500 companies were started by immigrants or the children of immigrants. Immigrants founded or co-founded more than half of Silicon Valley startups.
Given this history and the deep U.S. economic slump, the proposed Immigration Driving Entrepreneurship in America (IDEA) Act now being considered by Congress should be a slam dunk. The measure, co-sponsored by Rep. Zoe Lofgren, D-San Jose, and Rep. Jared Polis, D-Colo., would:
• Create a new EB-1 green card category for holders of advanced degrees in STEM (science, technology, engineering and mathematics) fields from top universities. The wages they are paid must be as good as or better than those paid to holders of similar jobs.
• Create a new green card category for entrepreneurs who have investors prepared to supply at least $500,000 toward a new commercial enterprise; who can prove their new businesses have created at least three full-time jobs for U.S. workers; or who meet other criteria.
• Make it easier for the spouses and minor children of STEM-trained immigrants to receive visas to stay in the U.S.
• Remove unnecessary hurdles that prevent companies from obtaining green cards for highly qualified potential employees.
• Direct that hundreds of millions of dollars in fees paid by employers who file employment-based green card petitions for foreign workers be used to provide STEM scholarships to and improve STEM education for U.S. students.
If history shows bringing in talented entrepreneurs triggers economic growth and creates new jobs — and it does — then why not seek out these individuals instead of forcing them to navigate an immigration system that often seems arbitrary or even capricious?
The San Diego Union-Tribune (Sept. 27)
Palestinians must engage Israel
Choosing a facile and illusory public relations boost over the hard work of brokering a long-term peace deal, Mahmoud Abbas has gone through with his threat to seek recognition of Palestinian statehood at the United Nations.
While the world body mulls the application, the Palestinian president must face the reality that the only path to full recognition for his people is to engage Israel in direct negotiations without preconditions. No more stalling. No more empty gambits. Come to the table now.
If peace is what Abbas seeks, there are borders to decide upon, with sensitivity to Israel’s demographic changes and its vulnerability to attack in a hostile neighborhood. There’s the so-called right of return of Palestinian refugees to wrestle with. There’s the status of Jerusalem, which is and should remain Israel’s capital. There’s Israel’s existence as a Jewish state to be affirmed.
Without the two parties coming to terms on these central, vexing questions, there can be no Palestinian state.
If it’s peace and not eternal conflict that Palestinian leaders truly want, they must re-engage in talks. They will find in Israel a willing partner.
The New York Daily News (Sept. 28)
The Shortchanged Generation
New Census data released demonstrate the chilling impact the recession has had on the current crop of young Americans, to whom the American Dream is increasingly becoming a historical curiosity.
Certainly the tradition of striking out on one’s own is fast waning.
The Census says that 5.9 million Americans ages 25 to 34 are living with their parents, an increase of 25 percent over from before the recession. Men are now twice as likely as young women to live with their parents. As an expression, “empty nesters” is almost quiz-show material.
They are delaying the traditional middle-class aspirations of marriage, buying a home and starting a family. Well, they do start families, but typically do so out of wedlock, meaning the mother likely faces a life of poverty. One in four families is headed by a single parent, a record high, according to the Census.
Homeownership, which would include the traditional “starter home” of young couples, is down for the fourth straight year.
Only 55.3 percent of young adults 16 to 29 were employed, according to the Census, down from 67.3 percent in 2000 and again a post-World War II low.
Until a better name for this hard-luck cohort comes along, the Shortchanged Generation will do as well as any.
The News-Herald, Willoughby, Ohio (Sept. 28)
A break for homeowners
Soon there may be good news for homeowners who are underwater and cannot refinance at the record-low mortgage interest rates. President Barack Obama is seeking changes that would give these homeowners a chance to refinance despite their predicament. If such a plan succeeds, it could put billions of dollars back into homeowners’ pockets and help stabilize the housing market.
The housing meltdown left an estimated 16 million borrowers owing more on their mortgages than their homes are currently worth. Most responsibly keep up with their payments, yet they are stuck with mortgages that carry interest rates of 6, 7 or 8 percent. They would love to refinance at current rates with interest on a 30-year fixed-rate mortgage as low as 4 percent.
If that were made possible, despite borrowers having little or no equity in their home or a low credit score, it could unlock hundreds of dollars in savings every month that could then be spent to stimulate the economy. Lower mortgage costs would also make staying in the home more affordable, leading to fewer defaults and foreclosures.
The plan’s details are still vague, but they would allow borrowers to essentially switch out of a higher-interest mortgage and into a lower-interest one for any loan backed by Fannie Mae or Freddie Mac, the government-controlled housing giants.
The biggest downside in all this is for investors who stand to lose when mortgages at higher interest rates are paid off early. But investors lose even more when a homeowner defaults, a scenario more likely to be avoided when mortgage payments are lowered. Working families who are current on their mortgage but can’t refinance because their home’s value plunged through no fault of their own deserve this break. Now it needs to get done.
St. Petersburg (Fla.) Times (Sept. 28)