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Sunday, January 13, 20081200230049

Selling Permanent Residency

Harriman, P. (2008). "Investors trade millions for visas: Little-known program encourages foreign investment in S. Dakota dairy expansion," Argus Leader, 13 January 2008. Available online: http://argusleader.com/apps/pbcs.dll/article?AID=/20080113/NEWS/801130309.

This is a very good idea, and solves two of the major problems associated with immigration in the current debate: that immigration increases crime and that immigration depresses low-skill wages. I did not know this existed, but it's easy to see how this is good for America and society. A news article about the "EB-5 'cash-for-green-cards' Visa:

When Rodney Elliott and his 20 employees milk the 1,700 cows at Drumgoon Dairy near Lake Norden, they complete a unique international financial hookup.

It worked like this: Four South Korean investors each put up $500,000 for the right to gain permanent residency in the United States for themselves and their families. That investment helped finance the Drumgoon Dairy and gave Elliott of Northern Ireland the chance to milk cows in South Dakota.

Elliott and his Korean partners were linked under a federal program designed to encourage investments in rural areas and other regions with high unemployment.

South Dakota was one of the first states to take advantage of the revised U.S. Citizenship and Immigration Services EB-5 program that provides 10,000 visas annually for foreign investors.

Half are reserved for those who put at least $500,000 into rural areas such as South Dakota to create at least five jobs. Since 2005, the EB-5 investment/visa program has directly contributed $30 million that leveraged a $90 million expansion of the South Dakota dairy industry, according to Joop Bollen, head of the South Dakota International Business Institute that oversees the state's effort to recruit foreign investment.


This is good, both nationally and socially. Nationally, linking permanent residency to proof of prior success has a similar effect to linking college application to the ACT or SAT. Further, my increasing the supply of high-income/high-wealth workers, it depresses wages at the upper end (all other things being equal) or leads to further economic growth (with a greater supply of high-income/high-wealth laborers).

Interestingly, the EB-5 program was created under Bush 41, lapsed under Clinton and was resumed under Bush 43:

EB-5 was established by Congress in the early 1990s largely as a way to counter efforts by Canada in the 1980s to attract foreign investors, especially from Hong Kong where as much as $1 trillion left the country after Britain returned it to China, according to U.S. Rep. Zoe Lofgren, D-Cal.

The program was suspended in the late 1990s. Congress retooled it to clarify investment goals and to ensure investors followed through on investment commitments and job creation. It was resumed in 2003.


More information on "EB-5: Immigration through Investment" is available from U.S. Citizenship and Immigration Services.

Comments

As you explore "identity" with your current series, do not conflict citizenship with identity (i.e. national identity). One is a legal condition, an "internationally" recognized one at that. The other is a perception, self or imposed, that does not need to, and frequently today does not, satisfy the legal requirements of identity.

Posted by: MountainRunner | Sunday, January 13, 2008

I hadn't thought of tying identity into this post! Could you say more on that?

Posted by: Dan tdaxp | Sunday, January 13, 2008

"Give me your lucky, your rich,
Your pampered elites yearning to breathe free..."

Posted by: Adrian | Monday, January 14, 2008

There is a plot for a *bad* movie waiting to be written out of this....

Posted by: Jayson | Monday, January 14, 2008

Adrian,

"Give me those who make our nation stronger
So we might be around, a little bit longer" ;-)

Jayson,

Lifetime or Sci-Fi Channel? ;-)

Posted by: Dan tdaxp | Tuesday, January 15, 2008

Why not Comedy Central? "Coming to America II". . .

Posted by: Michael | Thursday, January 17, 2008

Actually, Dan, was thinking something "sinister"--think Spike or TNT or TBS.

This post had me recalling this paperback I saw in a supermarket book section, *several* years ago. About a Big Evil Bank that was foreclosing farmland in the Midwest. and it turns out that much of the land being aquired just *happened* to be near important military facilities. Oh, and it just *happens* the Big Evil Bank is owned o controlled by Evil Oil Arabs....

Yeah, I know, merely "obliquely* related...

Posted by: Jayson | Thursday, January 17, 2008

Naw, I'd rather see it as a comedy *scratches armpit while grunting*.

A film about a Saudi prince trying to adapt to American life and American business practices could be both thoughtful and interesting, though, even if it isn't necessarily funny (though it probably would be funny in spots).

Posted by: Michael | Friday, January 18, 2008

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