Eyeing foreign investment to help fix the financial crises
The cause of the economic downturn in the U.S. will be a hotly debated subject for years to come. To begin, a look back helps in assessing forward movement to initiate economic change.
Beginning in 2003, funds from developing economies were being infused into developed economies. In early 2000, risk-taking increased, especially in the housing market. Construction on new housing units peaked in 2005 and eventually the supply of housing exceeded demand leading to the falling housing prices. Housing-related financial assets like mortgage-backed securities declined sharply in value leading to losses. Many financial firms that had placed highly leveraged, highly correlated bets became insolvent.
During the time of the housing collapse, USCIS was not very welcoming of foreign investors. The Administration, in an effort to keep jobs for Americans, was not watchful over the tremendous impact that foreign investment plays in facilitating the economy. More foreign money infused into U.S. business creates jobs for Americans.
Despite numerous government actions, including a nearly $1 trillion increase in government spending, the recovery has posted average annual growth rates of only 2 percent. The economy recovered much more rapidly from the Great Depression with 10 percent annual growth rates after two severe contractions. It is now five years after the most recent crisis and the labor market also continues to struggle. Two million fewer people are working today than before the recession began.
E2 Visas Create Jobs Locally
With a slow economic recovery, the Obama Administration needs to eye foreign investment to accelerate economic growth and for job creation.
It was not until 2011, that USCIS started creating initiatives to increase jobs in the U.S. and established the “Entrepreneurs in Residence” program in order to increase jobs by strengthening new business in the U.S. For so long, the Service lost sight of the valuable impact that foreign investment plays in the U.S economy and in particular helping create jobs for U.S. workers.
With an eye toward favoring foreign investment, the Government should reduce processing times for E-2 Treaty Investor Visas and EB-5 immigrant visa programs. It should also hire top CEO’s, Entrepreneurs and Business Analysts to advise adjudicators on current business trends such as virtual businesses and cloud based business. In addition, the Service needs to favor ongoing visa applications for investors and give premium processing for investment visas. Importantly, the Government needs to continue to welcome foreign investment into the U.S. after such as long period of closed doors.