An Economist's Approach to Immigration

2023 millionaire migrations. (Visual Capitalist)

Economics professor Richard Vedder and Matthew Denhart of the Coolidge Foundation want to allow immigrants to buy their way in: [bold added]

One way to modernize our immigration laws would be to allow market forces to decide who should become new citizens. Consider America like a club, with initiation fees required for admission. Instead of choosing immigrants based on where they are from, admit them based on likely contributions to America.

An example: Sell 8,000 visas to the highest bidders for 250 days a year. Suppose the average price is $30,000. Of the $60 billion in annual visa revenue [blogger's note: 250 days x 8,000= 2,000,000 immigrants per year. 2MM x $30,000=$60 billion], devote one-third to more-intense border enforcement, one-third to income-tax reduction (an “immigration bonus” to taxpayers), and one-third to increasing the anemic defense budget. Or apply the money to debt reduction, helping delay the fiscal armageddon threatening the pensions and healthcare of elderly Americans.

Those buying visas could get access to huge labor and capital markets. Productive potential newcomers would avoid years of waiting to enter the country, and America would gain largely productive citizens.

Once we set aside the romantic notion that all immigrants must be hard-working, law-abiding poor who just need a break, this proposal makes a lot of sense. Immigrants who can buy their way in are unlikely to claim welfare benefits but become immediately productive members of society and not run afoul of its laws. [This concept is already contemplated--but not explicitly with a price tag--through the EB-5 Immigrant Investor Program.]

Think of it as a fast track lane through airport TSA where "only" two million can get through. There's still room for many more to enter in the traditional, terribly inefficient way. This proposal is worth a try.