💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Business Books: Only immigration can save America, author says

Published 02/05/2009, 03:02 PM
Updated 02/05/2009, 03:08 PM

By Pedro Nicolaci da Costa

NEW YORK, Feb 5 (Reuters) - The United States must embrace immigration with open arms or risk going the way of over-indebted empires like Britain and Rome, according to a provocative new book.

"Like England before it, America is becoming increasingly indebted to its largest global competitor, China, and is fighting a costly war with no end in sight," says Haag Sherman, co-founder of Houston-based asset management firm Salient Partners.

In "Shattering Orthodoxies" (Easton Studio Press, $27.95), Sherman argues that one solution is to allow all who want to come to the United States to do so legally. This would boost the economy through increased tax receipts and address concerns about the cost of government programs.

Every immigrant worker who arrives on U.S. shores effectively saves the country at least the $150,000 it takes to raise a child at a minimum level, Sherman says, a benefit to the country that he dubs "America's Free Lunch."

The book is an extensive treatise outlining America's principal economic and foreign policy problems, along with detailed solutions. It does so in a way that blends a conservative preference for low taxes with a liberal focus on the environment and healthcare.

"Conservatives will likely applaud my focus on free market principles, until it hits at some of their sacred cows," Sherman warns. "Liberals will embrace many themes, but may flinch at some of the recommended solutions."

THE PRICE OF WAR

Indeed, conservatives might take issue with Sherman's views on the price of gasoline: it should be much higher, he says, to reflect the true cost of America's military presence in the Middle East. He advocates a $25 per barrel tax on all imports from outside North America.

"The energy produced in the Middle East is highly subsidized by the U.S. government, because the dependability of supply is largely predicated on the continued presence of the U.S. military in the region."

By the same token, Sherman maintains that a liberal tendency to shun all things nuclear overlooks both technological improvements over the last two decades and the inability of wind and solar power to meet the all the country's energy needs. "Neither makes economic sense at the moment," he writes.

On Social Security, the U.S. retirement system, Sherman suggests some minor changes could go a long way toward averting what many say is a looming crisis.

This would entail means testing at the top of the income ladder to ensure that those who can easily afford retirement on their own are not unduly burdening the system.

The issue of immigration also features prominently in this discussion, since replenishing the pool of young workers at a time when a record number of Americans are reaching retirement age is perhaps the simplest way to fill that fiscal gap.

Sherman concludes: "By legalizing all of the illegal immigrants in the United States and having them pay payroll taxes, the U.S. would generate nearly $1 trillion or more in payroll tax revenues in the future." (Reporting by Pedro Nicolaci da Costa; Editing by Eddie Evans)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.