“Immigrants are 80 percent more likely than native-born Americans to found a firm, according to a study released this May by researchers from the Massachusetts Institute of Technology. But more than that, a report released this week by the National Foundation for American Policy (NFAP) indicates that immigrants are disproportionately responsible for starting high-value companies.
According to the NFAP, a nonprofit that researches trade and immigration, immigrants have started 319 of 582, or 55 percent, of America’s privately-held startups valued at $1 billion or more. Over two-thirds of the 582 companies “were founded or cofounded by immigrants or the children of immigrants,” notes the NFAP. For comparison, approximately 14 percent of America’s population is foreign-born.
Together, the immigrant-founded companies are valued at $1.2 trillion and employ 859 people on average. Elon Musk’s SpaceX has the largest valuation at $125 billion, employing 12,000 workers; Gopuff, a food delivery service valued at $15 billion, has 15,000 employees; Stripe, a payment platform valued at $95 billion, employs 7,000; and Instacart, a grocery delivery service valued at $39 billion, has 3,000 workers.
These findings are notable, the NFAP points out, since “there is generally no reliable way under U.S. immigration law for foreign nationals to start a business and remain in the country after founding a company.” A large share of the immigrant startup founders came to the country as refugees, on family-sponsored green cards, or through employment-based pathways for other companies.
“Our employment-based pathways for immigrant entrepreneurship are so poorly designed, migrant businesses are often associated with non–employment based pathways,” points out Sam Peak, an immigration policy analyst at Americans for Prosperity. Peak notes that refugees “have the highest rates of entrepreneurship of any other immigrant group,” and family-based migration, “especially among siblings, is also strongly tied to new business formation.”
Lawmakers have introduced a number of measures this year meant to bring more entrepreneurial and highly educated immigrants to the United States, but many of these have been included in—and eventually stripped from—larger bills.”
“”The U.S. currently does not produce enough doctorates and master’s degrees in the science, technology, engineering and math fields who can go on to work in U.S.-based microchip plants,” write Brendan Bordelon and Eleanor Mueller for Politico. “The U.S. now produces fewer native-born recipients of advanced STEM degrees than most of its international rivals.”
According to a report from Eightfold AI, which runs a work force artificial intelligence platform,* the U.S. would need to fill between 70,000 and 90,000 fabrication jobs in order to have the numbers necessary for critical applications. And chipmakers are already struggling due to the insufficient availability of workers—the Taiwanese Semiconductor Manufacturing Corporation had aimed to open a new chip fabrication facility in Arizona this September, but had to delay the opening by six months due in part to a labor shortage.
Though the CHIPS Act carries a hefty price tag, it’ll do little to solve the underlying labor shortage that’s stymying domestic production in the short term. All 17 of the semiconductor experts surveyed by the Government Accountability Office noted the need to implement work force development policies, and many specifically suggested immigration reform. The CHIPS Act’s proponents argue that key provisions would help encourage native-born Americans to enter STEM fields and boost the semiconductor labor force down the road. But lawmakers intent on boosting chip manufacturing in the near future would be foolish to neglect foreign talent—much of which is already on American soil.
Allowing foreign-born students educated in STEM fields at American universities to stay in the country could help alleviate the labor shortages that semiconductor firms are facing.”
“Fedora Castelino left India when she was only four months old, eventually settling in the United States at the age of six as a dependent on her father’s H-1B visa. Now almost 19, she’s staring down a deadline: In just two years, she might have to deport herself.
Castelino is one of over 200,000 “Documented Dreamers,” dependent visa holders who were brought to the U.S. legally as children and have resided here lawfully since. If they can’t secure a work visa or sponsorship for a green card before turning 21—a process made far more difficult by extreme application backlogs and wait times—they’re forced to self-deport. “It’s so hard to realize that I’ve lived here basically my entire life—this is actually not my home,” says Castelino. “Even after finishing all my schooling in America, I’m still not in a home country, which is really hard to accept.”
“These are individuals who’ve essentially been raised and educated here,” says Dip Patel, founder of Improve the Dream, which advocates for Documented Dreamers. “This is typically the only place they’ve known.” According to a survey conducted by Patel’s organization, Documented Dreamers were, on average, just five years old when they came to the United States.
The Deferred Action for Childhood Arrivals (DACA) program, introduced by the Obama administration, shields undocumented “Dreamers” from deportation. Around 650,000 undocumented immigrants who came to the U.S. as children through no fault of their own are protected. But Documented Dreamers have received comparatively little attention from politicians.”
“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.”
“Customs and Border Protection (CBP) invoked Title 42 in nearly 1.8 million migrant encounters between April 2020 and March 2022, amounting to 61 percent of total encounters. Title 42 allowed immediate expulsion and barred affected migrants from applying for asylum.
Although immigration opponents pointed to those numbers as proof of the policy’s necessity, the figures were inflated. Because Title 42 is a health measure, immigration officials could not impose reentry penalties on expelled migrants. With no disincentive for reentry, the share of encounters that involved repeat crossers jumped to 27 percent in 2021, nearly four times higher than in 2019.
Excluding repeat crossings, the number of border apprehensions resembled pre-pandemic levels. Border hard-liners ignored that point, pointing to headlines announcing record CBP apprehensions. Meanwhile, most would-be migrants were unable to request asylum at a port of entry, opting instead to congregate at the border. That was the natural result of shutting down more orderly immigration channels.”
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” The Title 42 order has led to more frequent and less predictable migrant inflows. With proper planning, its phaseout could result in more efficient processing at the border. Restoring the asylum-seeking process, coupled with expanding opportunities for temporary work visas and economic migration, could help prevent both harm to migrants and chaotic scenes at the border.”
“Biden administration officials are now working to undo some of the harmful legal policies put in place by Trump-era attorneys general—less visible than controversial measures like the border wall and family separation, but nonetheless damaging to due process and punitive toward the people who seek asylum on American soil. Last June, Attorney General Merrick Garland scrapped rules that made it difficult for victims of domestic violence or gang violence, as well as family members of threatened individuals, to qualify for asylum.”
“In early April, Texas Gov. Greg Abbott unveiled a controversial plan to send buses full of undocumented immigrants to Washington, D.C. The policy, Abbott said, would “help local officials whose communities are being overwhelmed by hordes of illegal immigrants.”
But it turns out those communities might be stuck footing the hefty bill for Abbott’s busing scheme. According to state records obtained by Dallas–Fort Worth’s NBC 5, bussing costs came out to over $1.6 million in April and May. With 1,154 migrants transported during that period, the per-rider cost was roughly $1,400.
That’s far more expensive than a commercial bus or train ticket would’ve cost—a one-way journey from El Paso, Texas, to Washington, D.C., runs somewhere between $200 and $300 as of this article’s writing. It’s also more expensive than a first-class plane ticket from a border town to Washington, which NBC 5 reported ranged between $800 and $900. And it’s more than the public spends on average to transport a student to school for an entire school year.
NBC 5 notes that costs are so high in part because the state has hired security guards to staff each bus.”
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“Costs are further inflated by the fact that buses drive back to Texas from Washington empty, having dropped off their passengers. Texas, however, gets billed for all total mileage.”
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“Abbott’s busing plan is by no mean his only expensive anti-immigrant endeavor. He vowed last year to build a wall along his state’s border with Mexico, initially transferring $250 million in state revenues to the project as a “down payment.” A donation page for the wall has collected $55,322,273 as of May 27—unlikely to make a significant dent, given that a section of former President Donald Trump’s border wall in Texas came out to $27 million a mile. Abbott’s border-securing mission, Operation Lone Star, costs taxpayers over $2.5 million per week. That effort also left hundreds of migrants in pretrial detention for weeks or months over misdemeanor trespassing charges”
“This more mainstream version of the replacement theory hides behind justifications that the criticism of changing American demographics is about politics and power. It’s a narrative so prevalent on the right that nearly half of Republicans believe that immigrants are being brought to the country for political gains. According to a poll conducted in December by the AP-NORC Center for Public Affairs Research, 47 percent of Republicans agreed with the statement that “there is a group of people in this country who are trying to replace native-born Americans with immigrants who agree with their political views.”
But those justifications are built on false assumptions about American demographics and immigration: that white people will soon be a minority in this country, that immigrants and non-white voters are all Democrats, and that no longer being the majority group means a loss of power. When those assumptions are torn down, the true justifications for these fears become transparent.
The theory’s first inaccurate assumption is that white Americans will soon become a minority population. But using any nuanced reading of the data, that’s not true. Yes, in 2015, the U.S. Census Bureau published a population projection that by the year 2044, non-Hispanic white Americans would no longer be a numerical majority in the country. But not being the majority is not the same as being a minority: Even in that projection, non-Hispanic white Americans would still make up a plurality of the population compared with any other race. And non-Hispanic white Americans are not the only white Americans. When you include American Latinos who identify as solely white, you wind up with “more than 70 percent of the population identifying at least in part as white in 2044 and over two-thirds in 2060,” according to research published last year in the journal “Perspectives on Politics.””
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“The same research showed that presenting the demographic-shifts story as “majority-minority by 2044” prompts white Americans to say they feel more anxious and less hopeful. But when you present the same demographic changes in a more nuanced (and accurate) narrative around a rise in multiculturalism and Americans who identify as more than one race, white Americans’ self-reported anxiety was lower, even compared with a control group presented with basic facts about demographic changes with no narrative framing, according to the same study.
It’s almost like inaccurately framing demographic shifts as a zero-sum game leads to inaccurate perceptions among Americans that can amplify fear and resentment.”
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“Another plot hole in the mainstream replacement narrative is the assumption that immigrants will solely support the Democratic party. Stefanik’s campaign ran a Facebook ad in September that echoed replacement-theory rhetoric. “Radical Democrats” were planning “a PERMANENT ELECTION INSURRECTION,” the ad claimed. “Their plan to grant amnesty to 11 MILLION illegal immigrants will overthrow our current electorate and create a permanent liberal majority in Washington.”
Carlson, too, has repeatedly warned of a so-called Democratic plot to “import an entirely new electorate from the Third World and change the demographics of the U.S. so completely they will never lose again.”
But even he concedes that this narrative is flawed, pointing out in his show last week that many non-white and immigrant voters are, in fact, Republican. In the 2020 election, roughly 2 in 5 Latino voters cast a ballot for then-President Donald Trump. And, as my colleague Alex Samuels has written, messaging about racial grievances might, perhaps counterintuitively, attract some Latino voters to the Republican Party. In fact, the GOP attracts voters from every racial group, and while white voters may be its base, not all nonwhite or immigrant voters are Democrats.”
“Migrants in detention centers aren’t free to leave facilities whenever they want to shop for baby formula. Legally, essential products must be provided to migrant children that the government has detained. “Facilities will provide access to…drinking water and food as appropriate,” reads the 1997 Flores settlement that addressed the treatment of migrant children. A 2015 Customs and Border Patrol document on detention standards noted that “food must be appropriate for at-risk detainees’ age and capabilities (such as formula and baby food).” These legal standards predate the Biden administration.
Nor would diverting baby formula away from immigrant detention centers ease supply chain woes in a meaningful way. Ursula—the facility Cammack singled out on Twitter—holds around 1,100 detainees. The number of American parents who rely on formula to feed their infants is on the order of millions. Though several Republican lawmakers and right-leaning news outlets are agitating about the “pallets of baby formula for all of the illegals who are crossing into the United States,” none have been able to say exactly how much formula is going to detention facilities or how often shipments are arriving.
The baby formula shortage is indeed a huge problem. About 40 percent of top baby formula brands are out of stock right now, and producers are warning that shortages could last for several months. But the shortage wasn’t caused by the government’s legal duty to feed the kids it has confined. “Much of the current shortage is rooted in a February recall of formula after a suspected bacterial outbreak at an Abbott Nutrition plant in Michigan,” explains Reason’s Eric Boehm. And while we could re-fill those shelves with formula from abroad, tariffs and quotas “make it burdensome and costly to import the supplies that are now desperately needed.”
You can’t solve the national shortage by making it harder for undocumented parents to feed their babies. Instead of looking for immigrant scapegoats, lawmakers should tackle the trade and regulatory policies that helped create the current shortage.”
“Texas Gov. Greg Abbott has long held that his state is facing an “invasion,” which consists of thousands of migrants crossing into the United States from Mexico over the Rio Grande. Now, in an attempt to resist “the Biden open border policies” he claims are endangering Texans and compromising national security, Abbott is prepared to implement a policy that drew scrutiny as soon as he announced it.
“To help local officials whose communities are being overwhelmed by hordes of illegal immigrants,” said Abbott, “Texas is providing charter buses to send these illegal immigrants who have been dropped off by the Biden administration to Washington, D.C.””
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“immigration advocates and those with a passing respect for individual rights pointed out that Abbott’s proposal, as stated, is both immoral and illegal. Transporting migrants across state lines against their will “sounds dangerously close to federal felony kidnapping,” argued Aaron Reichlin-Melnick, senior policy counsel at the American Immigration Council. Further, Title 8 of U.S. Code Section 1324(a) states that “any person who…knowing or in reckless disregard of the fact that an alien has come to, entered, or remains in the United States in violation of law, transports, or moves or attempts to transport or move such alien within the United States by means of transportation or otherwise…shall be punished.”
Perhaps those snags are why the governor’s office has since softened its tone on busing migrants north. A press release published after the press conference stressed that “a migrant must volunteer to be transported” in order to board a bus or flight to Washington, D.C.”
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“the new busing policy sits atop a heap of misguided, expensive, and dubiously legal initiatives the governor has undertaken in order to keep migrants out of his state—people who have the right under U.S. immigration law to seek asylum in Texas.
This policy comes from the man who proposed building a border wall of his own after former President Donald Trump’s never came to fruition. Abbott’s project, which is ongoing, ran into many of the same issues as Trump’s—exorbitant costs, tension between federal and state jurisdiction, and the need for egregious eminent domain claims in order to get the job done (not to mention a lack of widespread support). “The elected officials in border communities don’t support [Abbott’s] plans,” American Civil Liberties Union of Texas attorney David Donatti told Reason last year.
The governor’s border-securing mission—Operation Lone Star—has been similarly fraught. While Abbott and other state officials bragged about “more than 11,000 criminal arrests, drug seizures that amount to millions of ‘lethal doses,'” and tens of thousands of undocumented immigrant referrals to the federal government for deportation, watchdogs reported “arrests of U.S. citizens hundreds of miles from the border,” “claiming drug busts from across the state,” and changing statistics and metrics of success, according to The Texas Tribune. Several Texas National Guard soldiers stationed at the border committed suicide during the operation, while dozens more criticized the mission’s execution in an internal survey. With its spotty track record, the still-active Operation Lone Star costs taxpayers more than $2.5 million each week.
With that background in mind, it isn’t surprising that Abbott would opt for a blusterous anti-migrant spectacle that comes at the expense of Texas taxpayers and neglects any humanitarian or legal obligations to asylum seekers.”