Monday, February 27, 2017

Possible visa changes could devastate the entire US Economy

President Trump and his administration have been toying around with the idea of making the visa process much stricter for many categories of people including foreign nationals who travel to the United States for business, hired by American companies, and students enrolled in U.S universities. There are reports of a draft order circulating in Washington. It is a highly controversial move by the Trump administration as the Muslim ban that he previously imposed was met with outrage across he country and then temporarily blocked by a federal ruling. However, last week the Department of Homeland security released information about new policies which include the detaining and deportation of foreign nationals that have previously held a criminal record or are suspected of being involved in crime. Trump's plan of restricting all business travelers to protected U.S jobs will not go well. This will include the travel of American citizens and green card holders. I agree with the attorneys saying it will have a devastating blow to the American economy. In my opinion I think this blow will be short lived and eventually the economy will shift into a more pro growth gear. However,  the Trump administration needs to make this a much smoother and less chaotic transition even if they are restricting business travel. It is true that American economy will receive a blow as a huge percentage of students that study in universities here, are STEM pupils. We have already seen the implications these sort of policies could have on the tech industry as many immigrants are CEOs of large corporations which employ thousands of people across the United States and across the world. The tech industry relies heavily on workers with H1B visas and to immediately strip them away will be detrimental to the economy and increase unemployment in general. This makes Trump's promise of creating more jobs on the line. Even if U.S workers were hired, wages would will not go up despite what people think. An economy cannot just make that shift overnight. So it will quite interesting to see the actual implantation of Trump's newest executive order and the backlash it will receive.





http://www.miamiherald.com/news/local/immigration/article135111869.html

2 comments:

Anonymous said...

President Trump and his administration have been dealing with immigration problem for a long time. Recently, his bans against for some categories of people make the visa process much stricter and raise strong opposition both domestic and overseas. His movements will arouse big change in the labor market, causing the decrease of supple of workers. With reduced labor supply, the cost of labor will increase and lead to increasing price.

Unknown said...

I agree, there can not be a shift in our economy overnight. These things take time and it feels like Trump's administration is trying to rush things. However, when you rush things they do not end well because you do not look at the negative effects. Having these visa changes has already angered many international students and employees, and can result in negative consequences rather than positive ones.