Organizing for America | Bigger America: Inject 0 B into Housing Market and Create 5 Million Jobs with a Zero Cost Immigration Reform

Inject $110 B into Housing Market and Create 5 Million Jobs with a Zero Cost Immigration Reform

By Haili - Oct 20th, 2009 at 2:16 pm EDT

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Tags: economy, housing, immigration reform

Uncle Sam could inject $110 B into housing market without pay a penny from its own pocket. With the money supply theory, if the money supply multiplier is 5, the $110 B injected will in turn create $550 B GDP which represents 5.5 million jobs in one year.So where will the money come from? It will come from the 920,000 H1B visa holders. The only thing congress needs to do is to pass a immigration reform legislation that will grant green cards instantly to those H1 B visa holders who buy a home here! By the end of year 2008, there are about 920,000 H1-B visa holders hanging around in United States. They are skilled workers hired by American employers. As the current immigration law rules, they will have to leave this country when their work visa expires, although the fact is most them will sooner or later turn in green card application and become a permanent resident.H1-B visa holders are different from illegal immigrants in the way that they came here legally through a complicated screening process. They must own the advanced skills needed by American companies and they must be paid a prevailing wage. They also pay all taxes as every American worker. By this mean, they are a contributor to our social security system when they landed this nation. Unfortunately, due to the Green Card quota, it usually takes them several years to get their green card. This lengthy process was significantly pro-longed after 9-11. This lengthy process added a lot of uncertainty to those who come here with good intention of achieving American dream through hard working. In such frustration, most of them will not use any money to buy a home, even when most of them could afford it. I estimate that at least 550,000 of these H1 B visa holders will buy a home if they would be given a green card. Let’s do a simple calculation here. If the average value of the home they are buying is $200K, the buying power released from this 550,000 people will be $200K x 550,000= $110 billion dollars!When this $110 B spending goes into our economy, it will become $550 B GDP. According to Bureau of Labor Statistics data and BEA data, the average GDP American worker achieved in 2008 is about 92,000 dollars. So the $550 B GDP increase will bring in 5.5M new jobs to this nation!Is there anything to lose? Some body may claim that they will compete with American workers. However, these critics neglected the fact that H1B visa holders already got a job and 90% of them will sooner or later get a green card through some ways. Therefore, there is no competition at all. More than that, by staying here, these people and their family will spend as every American citizen does. The spending will create more jobs than the jobs they took. Also, they are not depleting our social security savings but to make contributions in it, since they all pay social security tax, medi-care, income tax, sales tax and any other tax that any American citizen is paying. On the contrary, if they were forced to leave this country, they will bring all their savings to their home country which will create nothing to US economy but more debt. So it is time for us to take actions! Let’s put together a bill and have the congress pass it. You may have already noticed how successful the Cash for Clunker program worked. The commonality between these two programs is they all works from the consumer side. Releasing the purchasing power is the key to defrost this economy.I would highly appreciate your help if you can bring this idea to the attention of any congress man and woman. To move this nation forward, we need to think out of the box!

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