Thursday, August 3, 2017

Here's the real problem with slashing immigration - CNBC News

Here's the real problem with slashing immigration
The RAISE Act proposes to slash immigration by nearly 50 percent.
The bill would radically reshape America's immigration system – for the worse.
The bill would slow American entrepreneurialism, dangerously alter our demographics and betray America's core value of diversity.
Deepak Chopra and Kabir Sehgal
Scott Mlyn | CNBC
There will be a flurry of flak hitting the new immigration policy endorsed by the White House. President Donald Trump announced yesterday that he supported legislation that would drastically slash legal immigration to the United States by up to fifty percent in the coming decade.
The bill known as the Reforming American Immigration for a Strong Economy (RAISE) Act, introduced by Senators Tom Cotton (R-Arkansas) and David Perdue (R-Georgia) would end the visa diversity lottery that allocates 50,000 visas each year, limit refugees to 50,000 per year, and institute a skill based formula for determining whether to allow immigrants to enter our country.
In sum, the bill would radically reshape America's immigration system – for the worse. The bill should be opposed for three reasons: it's bad for business, demographics, and our "melting pot" culture.
First, the bill would further slow American entrepreneurialism. The number of startups in America is at a forty-year low. Immigrants are inherent risk takers, having left behind the familiarity of their homeland for the possibility of success in the United States. America's workforce is 15 percent composed of immigrants, yet they make up about 25 percent of entrepreneurs, and they account for about 25 percent of patent filings.
Some 3.6 million workers are employed at Fortune 500 companies started by immigrants.These companies include Google, co-founded by Sergey Brin from Russia; eBay, founded by Pierre Omidyar from France; and even AT&T, founded by Alexander Graham Bell from Scotland.
These startup founders may never have passed this skill-based test that the RAISE Act mandates. Such a test would have a chilling effect on overall immigration, at a time when America needs more risk takers.
To be sure, a meritocratic system has appeal, and those who support the RAISE Act cite the fact that Canada and Australia already employ such a skill based system. But these countries already accept more than twice the number of immigrants than the United States, on a per capita basis. If a skill-based policy could become part of a compassionate immigration policy, that would be both rational and in keeping with America's moral idealism. But there's little chance of that in the current anti-immigration climate.
"Some 3.6 million workers are employed at Fortune 500 companies started by immigrants.These companies include Google, co-founded by Sergey Brin from Russia; eBay, founded by Pierre Omidyar from France; and even AT&T, founded by Alexander Graham Bell from Scotland."
Second, the bill would dangerously alter our demographics. In short, America needs more workers. With Baby Boomers entering retirement, immigrants will play "the primary role in the future growth of the working-age population," according to a Pew Research study.
Remarkably, almost 90 percent of the nation's population growth over the next fifty years will come from immigrants and their children. In order for us to remain competitive in the global economy, and to meet our obligations, we need a younger, more vibrant workforce. This bill would reduce the number of immigrants, just when we need them the most.
Third, the bill betrays America's core value of diversity. The immigration hawks defend their position by claiming to benefit blue-collar workers born in this country while portraying immigrants as a drag on the economy.
To keep these arguments afloat, a constant stream of distortion is needed, and when economists provide data showing the net economic impact of immigration is positive, immigration hawks fall back on the stereotype of drug dealers and rapists that Trump proclaimed the first day he declared his candidacy.
The bill chips away at America's historic role as a refuge for "your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore," as it says on the Statue of Liberty. Demonizing the most oppressed is a shameful repudiation of American values - no surprise from this administration.
We are witnessing a familiar cycle in American history, where waves of anti-immigrant feeling overwhelm the basic fact that each of us is a descendant of immigrants. Our attitudes are schizoid, and yet looking back, no previous anti-immigrant outcry has added luster or honor to this country. The immigrant story is the American story.
Commentary by Deepak Chopra and Kabir Sehgal. Chopra is the founder of The Chopra Foundation and co-founder of The Chopra Center for Wellbeing and a pioneer in integrative medicine and personal transformation. Sehgal is a New York Times bestselling author. He is a former vice president at JPMorgan Chase, multi-Grammy Award winner and U.S. Navy veteran. Chopra and Sehgal are co-creators (with Paul Avgerinos) of Home: Where Everyone Is Welcome, a book of thirty-four poems and album of twelve songs inspired by American immigrants.

Trump Supports Plan to Cut Legal Immigration by Half - New York Times

WASHINGTON — President Trump embraced a proposal on Wednesday to slash legal immigration to the United States in half within a decade by sharply curtailing the ability of American citizens and legal residents to bring family members into the country.
The plan would enact the most far-reaching changes to the system of legal immigration in decades and represents the president’s latest effort to stem the flow of newcomers to the United States. Since taking office, he has barred many visitors from select Muslim-majority countries, limited the influx of refugees, increased immigration arrests and pressed to build a wall along the southern border.
In asking Congress to curb legal immigration, Mr. Trump intensified a debate about national identity, economic growth, worker fairness and American values that animated his campaign last year. Critics said the proposal would undercut the fundamental vision of the United States as a haven for the poor and huddled masses, while the president and his allies said the country had taken in too many low-skilled immigrants for too long to the detriment of American workers.
“This legislation will not only restore our competitive edge in the 21st century, but it will restore the sacred bonds of trust between America and its citizens,” Mr. Trump said at a White House event alongside two Republican senators sponsoring the bill. “This legislation demonstrates our compassion for struggling American families who deserve an immigration system that puts their needs first and that puts America first.”
In throwing his weight behind a bill, Mr. Trump added one more long-odds priority to a legislative agenda already packed with them in the wake of the defeat of legislation to repeal and replace President Barack Obama’s health care program. The president has already vowed to overhaul the tax code and rebuild the nation’s roads, airports and other infrastructure.
Both Canada and Australia have legal immigration systems based on points for skills. Both systems are widely praised as being fair and...
expat 3 hours ago
Like the Polish construction workers who built Trump Tower, or the Dominicans and Haitians tending the lawn and cleaning rooms at Mar Lago?...
Kristine 3 hours ago
The religious right must be very upset with this new policy as it contradicts Jesus in every way. Perhaps they will change the golden rule...
But by endorsing legal immigration cuts, a move he has long supported, Mr. Trump returned to a theme that has defined his short political career and excites his conservative base at a time when his poll numbers continue to sink. Just 33 percent of Americans approved of his performance in the latest Quinnipiac University survey, the lowest rating of his presidency, and down from 40 percent a month ago.
Democrats and some Republicans quickly criticized the move. “Instead of catching criminals, Trump wants to tear apart communities and punish immigrant families that are making valuable contributions to our economy,” said Tom Perez, the chairman of the Democratic National Committee. “That’s not what America stands for.”
The bill, sponsored by Senators Tom Cotton of Arkansas and David Perdue of Georgia, would institute a merit-based system to determine who is admitted to the country and granted legal residency green cards, favoring applicants based on skills, education and language ability rather than relations with people already here. The proposal revives an idea included in broader immigration legislation supported by President George W. Bush that died in 2007.
More than one million people are granted legal residency each year, and the proposal would reduce that by 41 percent in its first year and 50 percent by its 10th year, according to projections cited by its sponsors. The reductions would come largely from those brought in through family connections. The number of immigrants granted legal residency on the basis of job skills, about 140,000, would remain roughly the same.
Under the current system, most legal immigrants are admitted to the United States based on family ties. American citizens can sponsor spouses, parents and minor children for an unrestricted number of visas, while siblings and adult children are given preferences for a limited number of visas available to them. Legal permanent residents holding green cards can also sponsor spouses and children.
In 2014, 64 percent of immigrants admitted with legal residency were immediate relatives of American citizens or sponsored by family members. Just 15 percent entered through employment-based preferences, according to the Migration Policy Institute, an independent research organization. But that does not mean that those who came in on family ties were necessarily low skilled or uneducated.
The legislation would award points based on education, ability to speak English, high-paying job offers, age, record of achievement and entrepreneurial initiative. But while it would still allow spouses and minor children of Americans and legal residents to come in, it would eliminate preferences for other relatives, like siblings and adult children. The bill would create a renewable temporary visa for older-adult parents who come for caretaking purposes.
Stephen Miller Jousts With Reporters Over Immigration
Exchanges between the senior White House adviser and Glenn Thrush of The New York Times and Jim Acosta of CNN became combative at a news briefing on Wednesday. By THE NEW YORK TIMES on Publish Date August 2, 2017.
The legislation would limit refugees offered permanent residency to 50,000 a year and eliminate a diversity visa lottery that the sponsors said does not promote diversity. The senators said their bill was meant to emulate systems in Canada and Australia.
The projections cited by the sponsors said legal immigration would decrease to 637,960 after a year and to 539,958 after a decade.
“Our current system does not work,” Mr. Perdue said. “It keeps America from being competitive and it does not meet the needs of our economy today.”
Mr. Cotton said low-skilled immigrants pushed down wages for those who worked with their hands. “For some people, they may think that that’s a symbol of America’s virtue and generosity,” he said. “I think it’s a symbol that we’re not committed to working-class Americans, and we need to change that.”
But Senator Lindsey Graham, Republican of South Carolina, noted that agriculture and tourism were his state’s top two industries. “If this proposal were to become law, it would be devastating to our state’s economy, which relies on this immigrant work force,” he said. “Hotels, restaurants, golf courses and farmers,” he added, “will tell you this proposal to cut legal immigration in half would put their business in peril.”
Cutting legal immigration would make it harder for Mr. Trump to reach the stronger economic growth that he has promised. Bringing in more workers, especially during a time of low unemployment, increases the size of an economy. Critics said the plan would result in labor shortages, especially in lower-wage jobs that many Americans do not want.
The National Immigration Forum, an advocacy group, said the country was already facing a work force gap of 7.5 million jobs by 2020. “Cutting legal immigration for the sake of cutting immigration would cause irreparable harm to the American worker and their family,” said Ali Noorani, the group’s executive director.
Surveys show most Americans believe legal immigration benefits the country. In a Gallup poll in January, 41 percent of Americans were satisfied with the overall level of immigration, 11 percentage points higher than the year before and the highest since the question was first asked in 2001. Still, 53 percent of Americans remained dissatisfied.
The plan endorsed by Mr. Trump generated a fiery exchange at the White House briefing when Stephen Miller, the president’s policy adviser and a longtime advocate of immigration limits, defended the proposal. Pressed for statistics to back up claims that immigration was costing Americans jobs, he cited several studies that have been debated by experts.
“But let’s also use common sense here, folks,” Mr. Miller said. “At the end of the day, why do special interests want to bring in more low-skill workers?”
He rejected the argument that immigration policy should also be based on compassion. “Maybe it’s time we had compassion for American workers,” he said.
When a reporter read him some of the words from the Statue of Liberty — “Give me your tired, your poor, your huddled masses yearning to breathe free” — Mr. Miller dismissed them. “The poem that you’re referring to was added later,” he said. “It’s not actually part of the original Statue of Liberty.”
He noted that in 1970, the United States allowed in only a third as many legal immigrants as it now does: “Was that violating or not violating the Statue of Liberty law of the land?”

Correction: August 2, 2017
An earlier version of this article misstated part of President Trump’s effort to stem the flow of immigrants into the United States. He has increased immigration arrests, not deportations.



'Bitcoin cash' potential limited, but a catalyst could be looming for it to take off - CNBC News

'Bitcoin cash' potential limited, but a catalyst could be looming for it to take off
'Bitcoin cash' may not have long-term potential, industry insiders told CNBC.
But if the promised upgrade to the core bitcoin network doesn't end up happening, this could be a boost for 'bitcoin Cash'.
It hit a high of just over $727 on Wednesday before more than halving to just over $310 in the space of a few hours.
Arjun Kharpal
A Bitcoin cryptocurrency souvenir coin.
"Bitcoin cash," the cryptocurrency created as a result of a split in the bitcoin blockchain, may not have long-term potential, industry insiders told CNBC, but a key event down the road could give it more backing.
To recap, the underlying bitcoin technology known as the blockchain underwent a "fork", meaning it split to create a new digital currency. This happened because the community disagreed on how to increase the capacity of the blockchain, which was struggling with record-high transaction times for bitcoin.
As a result of the split, "bitcoin cash" was created. And it has had a volatile start. It hit a high of just over $727 on Wednesday before more than halving to just over $310 in the space of a few hours, according to price tracking site Coinmarketcap.com.
Many experts said there would likely be some short-term trading activity, but have expressed doubt over the longer-term potential of "bitcoin cash".
"Over the longer term, Bcash's prospects are limited due to the relatively small size of the community maintaining its blockchain, developing its software and using the cryptocurrency," Aurelien Menant, founder and CEO of cryptocurrency exchange Gatecoin, told CNBC by email.
Meet Bitcoin Cash, the new digital currency that split Bitcoin in two Meet Bitcoin Cash, the new digital currency that split Bitcoin in two
Menant said Gatecoin would start supporting trade with "bitcoin cash". This is in contrast to Coinbase, the world's largest bitcoin exchange, which decided not to support the new cryptocurrency.
In a Tweet on Tuesday, Coinbase CEO Brian Armstrong, said we "don't want to rush anything out," highlighting the uncertainty over "bitcoin cash's" future.
But the continuing debate over the underlying bitcoin technology continues. The fight was over how much to increase the block size of the blockchain.
To understand this, it's important to outline how transactions work. Transactions by users are gathered into "blocks" which is turned into a complex math solution. So-called miners, using high-powered computers work these solutions out to determine if the transaction is possible. Once other miners also check the puzzle is correct, the transactions are approved and the miners are rewarded in bitcoin.
Increasing the block size would boost transaction speeds. Some people wanted a solution that would dramatically increase the block size from its current 1 megabyte level. But the majority of the community have decided to increase the block size to 2 megabytes.
A full recap of what has happened can be found here. This 2MB increase is likely to come into effect in November, providing miners stick to their word and make the necessary software updates.
If this doesn't happen, then "bitcoin cash" could get a boost.
"If most miners decide that for economic reasons they prefer to mine larger blocks and commit more hashing power to Bcash, then it's likely more development work and user adoption would follow, and those conducting business with bitcoin may decide to adopt Bcash instead," Menant said.
"Yet for this to happen Bcash would need to prove that its technology can match the security features and reliability of bitcoin's software," he added, striking a note of caution.