This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

What Both Sides Really Mean on 'Immigration Reform'

NEW YORK ( TheStreet) -- Silicon Valley's latest cause celebre is the advocacy for immigration reform. All parties in Washington, D.C. are also advocating immigration reform.

The problem is this: What one person means by "immigration reform" is not what the other side means. The people who will actually have to vote on immigration reform mean two very different things.

It's a classic case of two sides using one word -- reform -- to mean two different things. Let me illustrate with an analogy.

If Ron Paul were to debate Barack Obama about "tax reform" both would claim to be in favor of tax reform. Who wouldn't? But what each of them means by "reform" would be the total opposite of the other.

What Ron Paul means by tax "reform" is to abolish taxes and instead fund a constitutional, pre-1913 federal government primarily by voluntary charity or small user fees. What President Obama would mean by tax "reform" is that in principle 100% of all income should be taxed, except for what the government charitably allows you to keep.

In other words, as the two parties both profess their strongest support for "reform" they mean the exact opposite of the other. Same thing with immigration reform, mostly.


Almost every famous person in the Silicon Valley food chain -- from CEOs to venture capitalists -- are pushing for "immigration reform." So what do most of them mean by that?

Most technology companies want to expand their pool of engineers that they can hire -- here in the U.S. as well as around the world. As it stands it's hard to get a work visa for a foreign worker to move to the U.S., especially from countries such as India and China.

A familiar example of how this works is that a graduate of a top U.S. university in computer science either starts a company or takes an engineering job with a Silicon Valley company. However, before long he or she is unable to stay in the U.S., so he or she returns home to China or India to run his or her company or work over there.

The U.S. is likely to benefit from a software or hardware engineer settling in the U.S. in order to work or start a company. This person will likely contribute far more in GDP than he or she will be on the public dole. The education is already paid for. This immigrant is the opposite of a welfare case.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs