“Since the early 20th century, the US has been a world leader in innovation and technical progress. In recent decades, however, some experts have worried that the country’s performance on these fronts has been slowing, even stalling.
There are many possible explanations for this phenomenon, but one has seemed especially salient in recent years: an immigration system that discourages, and often turns away, the most highly skilled and talented foreign workers.
Historically, immigrants have played a vital role in American innovation. As Jeremy Neufeld, an immigration policy fellow with the Institute for Progress, a new innovation-focused think tank, remarked to me, “It’s always been the case that immigrants have been a secret ingredient in US dynamism.” Robert Krol, a professor of economics with California State University Northridge, describes it this way: “The bottom line is that when you look at the impact of immigrants — whether you think about starting businesses or innovating patents — they have a large, significant impact.”
Multiple analyses of historical immigration patterns show that more migrants to a region correlates with a higher rate of innovation and related economic growth. By contrast, when immigration is more restricted, companies — especially tech companies and those that conduct innovative R&D work — are less successful, and growth in jobs and wages slows. Studies have also shown that immigrants tend to be entrepreneurial: Based on survey data between 2008 and 2012, 25 percent of companies across the US were founded by first-generation immigrants. Other research shows that immigrants are more likely than native-born US citizens to register patents.
As Neufeld points out, the Covid-19 pandemic might have gone much worse if immigration had always been as restrictive as it is now. A number of co-founders and critical researchers with Moderna are immigrants, as is Katalin Karikó, a pioneer of mRNA research — who, if she had tried to immigrate after the 1990 H-1B reforms to the skilled guest worker program, might not have been able to come to the US at all.
Those H-1B guest visas are at the center of the issue today, some experts say. Designed in 1990 to bring in skilled professionals to meet labor market shortages, visas through the H-1B guest workers program are sponsored by employers, who submit petitions to bring in particular foreign professionals appropriately qualified for specific, highly skilled roles. Guest workers generally need at least a bachelor’s degree in a relevant field.
According to the United States Citizenship and Immigration Services (USCIS), there are about 580,000 foreign workers currently on H-1B visas, a small percentage of the US workforce and immigrant population. But they are disproportionately concentrated in STEM, particularly computer-related occupations, often in fields where cutting-edge technologies are being developed.
Unfortunately, the H-1B process is falling increasingly out of date and badly failing to serve its original purpose of turning on the talent tap for top innovative companies. Congress sets an annual cap on how many H-1B visa holders can come in, and that cap is now far below what the labor market demands. The crush of applications once the window opens for a given year on March 1 is so intense that, in every year since 2014, USCIS has resorted to a lottery system instead of a first-come, first-serve process. That means that year in and year out, hundreds of thousands of high-skilled workers from abroad try to come to the US and ultimately fail, so that both the prospective employee and the company hoping to hire them end up losing out on their preferred option.”
“After ten years of hard work to try and promote innovation and consumer welfare, the European Union has revealed its bold plan: to force device manufacturers to use a single charging standard.
The Eurocrats are now hard at work patting themselves on the back for this glorious outcome of the decade-long “trilogue on the common charger.” By 2024, wired devices sold in the EU must use the USB-C charging port and will not be sold with a charger by default. This is intended to “curb e-waste” and give consumers “more choice.” Can you feel the innovation? Never say the EU does not dream big.
Unless you are one of the 56 million or so Europeans who use iPhones, not much will change. Private companies have converged on common standards for years. Most, if not all, of your devices might already use the nifty USB-C charger, which in addition to being small and symmetrical, allows fast charging to boot.
And some Apple products, like my own MacBook Air, use the USB-C standard too. It is nice to be able to seamlessly charge my phone and my laptop without hassling with extensions.
The problem is the iProducts. Most, but not all, of these famously (or infamously) use Apple’s proprietary Lightning connector, which is incompatible with other companies’ devices. iPhones, iPads, and iPods usually use Lightning connectors, which means people need to have a separate charger for these specific products.
The Lightning charger has few fans today. It’s proprietary, it doesn’t always allow fast charging, and you’ll pay a lot for the privilege. Haters—and there are many—will be tempted to applaud this move by the EU.
But as usual, the EU’s meddling will almost certainly have the opposite effect that it is intending. Instead of “limiting e-waste,” this ban will create millions of useless chargers that will soon head to a landfill.”
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“Although that rat’s nest of old chargers in your bedside table is aesthetically salient (and awful), it’s apparently not a big contributor to this ballyhooed e-waste problem. According to the 2020 Global E-Waste Monitor, chargers represent some 0.1 percent of the 53.6 million metric tons of tech garbage produced each year.
As usual, the EU is spending a lot of time and effort on something that is not that big of a problem in the grand scheme of things.”
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“Apple is not a big fan of the rules, having argued that the prohibition on non-USB-C chargers will limit the kinds of innovations they can offer their customers. This might not convince the well-sized anti-Lightning community, but it is a little rich that professional bureaucrats who have not so much as opened a business in their lives would deign to tell some of the world’s most successful technology companies how to design their products.”
“You try to explain two broad things about sustained economic growth: why it started when it did (in the mid-18th century) and why it started where it did (England). Let’s start with the when. What took so long? Humans invented agriculture maybe 10,000 years ago. Why did it take 9,800 years or so for that to lead to real economic growth?”
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“This is one of the key questions in all of economics. Its answer is central to why some countries grew rich while others have not. The simplest answer is that economic growth occurred only after the rate of technological innovation became highly sustained. Without sustained technological innovation, any one-off economic improvement will not lead to sustained growth. Incomes will rise in the short run, but over time people will have more babies and those babies will eat up all the economic surplus. This is known as the “Malthusian trap,” after Thomas Malthus, a British clergyman of the late 18th century. This Malthusian logic explains the pre-industrial world pretty well.”
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“The question is why it took so long for the rate of technological innovation to grow as it did. This is one of the central questions we attempt to answer in this book. And there is not one “silver bullet” answer. For one, sustained innovation requires institutions that limit confiscation by the government (and protect other property rights more generally). But most societies in world history were weak on this dimension.
Sustained innovation also requires cultural values that support innovation and encourage understanding of how the world works. Societies in which work is looked down upon are unlikely to experience sustained innovation.
Ultimately (and this matters for the acceleration in growth we observe from the late 19th to the 20th centuries), it also helps if families limit the number of children they have. This does not necessarily contribute to innovation, but it does mean that innovation will more quickly translate into growth.
Most societies in world history had none of these features, let alone all of them. It took a while for all of these preconditions to coalesce in one nation. But once it did, economic growth took off.”
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“[In our view], the decisive break responsible for industrialization rests on developments that seem to be only indirectly connected to the story of colonial exploitation. But future work might change my opinion on this subject.”
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“On the one hand, the sugar economy boomed in the 17th and 18th centuries, and cotton was the major input into the textile factories at the center of Britain’s industrialization. These crops were produced with slave and coerced labor.
On the other hand, the evidence is fairly weak of a connection between the products of exploited labor and the innovations that were central to the onset of modern economic growth. This is not to deny a connection between the two, and reasonable people disagree over the relevant counterfactuals. Had there been no slave labor in the New World, would the Lancashire factories have been able to get enough cheap cotton to make innovation worthwhile? Would innovation have been possible with more expensive cotton of different quality from other parts of the world?
Our book leads to the conclusion that there is no silver bullet explanation for why the world became rich. Colonization likely played some role, and it likely played a much greater role in keeping large parts of the formerly colonized world poor. But there are many key features of the onset of growth that cannot really be accounted for by colonization. Most importantly, explaining how the world became rich requires an explanation for why the rate of technological change rose so rapidly. Colonization may have played an indirect role in this process, but there are many other causes we highlight that were much more direct and relevant.”
“The current U.S. Navy carrier fleet is entirely nuclear powered, consisting of ten Nimitz-class carriers and USS Gerald R. Ford, the first of a new class. The Navy prefers nuclear-powered aircraft carriers as they don’t require fuel oil and have essentially unlimited range. A nuclear-powered aircraft carrier can depart immediately to deal with an international crisis without having to top off with fuel. The use of nuclear power also lessens the burden on the Navy’s logistics fleet to keep carriers moving.”
“the Switchblade is a weapon, not a UAV or what most people think about as a drone. Yes, it flies and can be guided in real time, but it was clearly designed and intended to be used as a weapon. When clear of the launch tube, its folded wings pop out and electric engine powers up, allowing the weapon to fly up to 25 miles from its launch point. The operator controls the Switchblade remotely by data link, using the camera in the weapon’s nose to navigate to the target area. Once the target is designated by the operator, the weapon automatically guides and crashes itself into the target, detonating the explosive warhead.
Nor is this kind of weapon the only example of this new mission class and technical capability. Even if a munition can be recovered in the event that no target is found, what matters is the intent of employment: target destruction through self-destruction.
Contrast this to remotely piloted aircraft, which may deliver independent munitions, but are intended to be recovered and flown again and again just like a manned aircraft. The key differentiator is the intention behind how these respective technologies are used. This repeated reuse — similar to a manned aircraft — is what distinguishes UAVs from loitering munitions like the Switchblade.”
“Despite their cost, the Zumwalts have been plagued by equipment problems. Soon after its commissioning in 2016, the USS Zumwalt broke down in the Panama Canal. The second ship in its class, the USS Michael Monsoor, failed during sea trials the following year.
As a 2018 report from Military Watch Magazine noted the Zumwalts “suffered from poorly functioning weapons, stalling engines, and an underperformance in their stealth capabilities, among other shortcomings.”
“They have almost entirely failed to fulfill the originally intended role of multipurpose destroyer warships, while the scale of cost overruns alone brings the viability of the program into question even if the destroyers were able to function as intended,” the outlet said.
The Zumwalts lack several vital features, including anti-ship missiles, anti-submarine torpedoes, and long-range area-air defense missiles, the military expert Sebastian Roblin wrote in a 2021 National Interest article. Roblin called the destroyers an “ambitious but failed ship concept.”
And, noted Roblin, their weaponry wasn’t cheap. The ship’s long-range land-attack projectile guided shells cost roughly $800,000 each — about the same price as a cruise missile. The munitions were eventually canceled, considered too pricey to merit producing.
Roblin said the Zumwalt was produced based on “unrealistic” estimates that banked on minimal cost, despite coming in 50% over budget.”
“Over the coming weeks, AT&T is rolling out cellphone location tracking that’s designed to route emergency calls to 911 more quickly. The company says the new feature will be nationwide by the end of June and should make it easier for, say, an ambulance to reach someone experiencing a medical emergency. At first glance, it seems like a no-brainer. But it’s also a reminder that as phone companies promise to save lives, they’re also using a lot more data about you in the process.”
“Compliance costs are high and fines for failing to do so are significant”
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“The working paper’s four writers drilled down into the data and determined that GDPR helped push the exit of a third of available apps and also suppressed the introduction of new apps into the market. New app introductions in the quarters following the launch of GDPR enforcement dropped by half.
“Whatever the privacy benefits of GDPR, they come at substantial costs in foregone innovation,” the authors note.”
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“a sharp decline in both successful and unsuccessful apps entering the market. It wasn’t just bad or predatory apps being affected by GDPR.”
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” They also calculate that GDPR raises costs to produce apps by more than 30 percent.”
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“The report’s authors conclude that when the quality of a product is unpredictable (like an unknown or not-yet-existent app), the ease of entry into a marketplace is important to help determine its value to consumers. When regulatory barriers like GDPR drive up entry costs, then there can be “substantial [consumer] welfare losses” in the form of stillborn products and services we might want or need but never see.”
“Congress directed the Army to stop funding the long-range cannon in its fiscal 2022 appropriations act, and “based on that direction, the Secretary of the Army decided to terminate the [SLRC] project this year,” Ellen Lovett, Army spokesperson said in a May 20 statement to Defense News.
The decision also “eliminates potential redundancy, and ensures we effectively use tax dollars to achieve modernization objectives,” she wrote. “Pursuing the effort could cost billions of dollars even if the science and technology effort succeeded because the Army would have to enter into a development program, procure the system, and create entirely new units to operate it.”
The Army still has four other long-range fires programs set to reach operational Army units in 2023”
“mergers don’t just affect consumers: “The world has changed for those workers,” Warren said.”
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“Studies have shown that as markets become more concentrated, wages stagnate.”
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“Under Warren’s new bill, mergers over a certain size or that consolidate the market too much are forbidden. And consummated mergers that have harmed competition, workers, consumers, or competitors can be broken up.”