EB-5 and the Prostitution of America

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For 20+ years, I had taught a course on Economic Development to undergrads and graduate students — why Third World countries are poor and how they can develop their economies and so catapult themselves to join the developed First World.

But developing an economy requires capital or money, and Third World countries, by definition, are underdeveloped and capital-poor. If a country’s people had the surplus capital to invest in factories and businesses, it wouldn’t be a Third World country to begin with.

So the standard economic development strategy is to devise ways to attract cash from countries that are developed — and rich — by offering them sweet deals so they will invest in the poor country. That capital is called Foreign Direct Investment (FDI).

Poor countries typically employ tax incentives (low or no taxes), low wages, and lax or no labor laws to attract FDI. The smarter Third World governments jealously guard their national sovereignty and autonomy to avoid being exploited by foreign capitalists and becoming dependent on FDI, to the detriment of their own national wellbeing. The smart ones insist that the foreign investors train domestic workers into skilled labor, anticipating that day in the future when the poor country becomes developed and no longer must bow to wealthy foreigners.

In all my years of studying, teaching, and writing on economic development, I have never come across a developed First World country so desperate for FDI as to prostitute itself.

But that is what the federal and state governments of the United States of America are doing.

Let me ask you:

  1. Is America a poor country and thus lacking in affluent citizens with money to invest in starting up businesses in America?
  2. Does our country have a dearth of entrepreneurs, investors, businessmen and women?
  3. As if we don’t already have an illegal immigrant problem, is the United States so sparsely populated that we must offer incentives for people around the world to immigrate here?

The answer to all three questions is clearly “No.”

Then why is it that, instead of persuading American businesses to stop “outsourcing” exporting jobs overseas, our government is prostituting America to attract foreigners to invest?

The U.S. Citizenship and Immigration Service (USCIS) has a program called EB-5 which, in the name of “helping create jobs,” grants foreigners permanent U.S. residency in exchange for bringing in Foreign Direct Investment.

EB-5, the immigrant investor visa program, was created by the Immigration Act of 1990 in the Bush Sr. administration. Yes, the same George Herbert Walker “we need a New World Order” Bush:

EB-5 offers a green card for foreign nationals who invest at least $500,000, creating at least 10 jobs. The minimum amount of FDI for urban areas is higher — at least $1 million — whereas investment in rural or targeted employment areas is $500,000. The investment must also remain “at-risk” without repayment for a period of two full years.

EB-5 investment can only be received by an economic unit defined as a Regional Center — “an economic unit, public or private, engaged in the promotion of economic growth, improved regional productivity, job creation and increased domestic capital investment.”

Translated, this means that to be a “Regional Center” requires the designation and approval of government, specifically the USCIS. This, in turn, means yet more government bureaucracy, more “public” employees, and their attendant unions!

There are USCIS-approved EB-5 Regional Center projects in Alabama, Arizona, California, Connecticut, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kansas, Louisiana, Maryland, Michigan, Mississippi, Nevada, New Jersey, New York, Ohio, Pennsylvania, South Carolina, South Dakota, Texas/Oklahoma, Utah, Vermont, Washington, Wisconsin.

Tomorrow we will take a look at Idaho’s EB-5 projects, specifically what its state government has done to lure in Chinese FDI.

Ponder this: America, a rich First World country, is so desperate that we have offered China — a developing and, as China’s leaders insist to this day, still poor country — to bring in FDI in exchange for permanent residency and U.S. citizenship.

Stay tuned!

H/t beloved fellow Tina.

~Eowyn

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5 responses to “EB-5 and the Prostitution of America

  1. This should be a smack in the face of those who are working so hard to destroy America. The truth of this is both stunning and difficult to read, due to its inherent truth as an indictment of the bad policies we’ve been following for decades. Looking at the longer term, one can see the truth in Roosevelt saying that when things look like an accident or coincidence, that the result was intended. There are no accidents, no ‘unforeseen results’, and no coincidences. It’s all been intended, and it all needs to stop and get turned around.

    None of us can afford to allow this great Republic to become the third world nation that is the sure result of following the current economic and political models currently defining the nation’s path.

     
  2. Those who want America to join the Third World countries have never lived in one.

    Been there, done that. Nice place to visit.

     
  3. lowtechgrannie

    I remember reading about this in the local Seattle newspaper a year or two ago. The City of Seattle was offering sweetheart deals to foreign nationals if they would immigrate to Seattle with sufficient cash to start businesses in certain locations — enterprise zones. It seems like fast-tracking citizenship for people willing to invest significant wealth was also part of the deal. Stands to reason, really rich people make good citizens (NOT!)

     
  4. i suppose next obama and his administration will change the name of washington d.c. to new sierra leone meanwhile more americans lose their homes and resort to living in obamavilles. dirt floor homes with cow dung walls, an educational system that produces nothing but dumb and dumber grads. and the transformation to a 3rd world status will be complete just keep obama in for another 4 years

     
  5. “The peaceful vision of the UN’s founder…,” you mean David Rockefeller? Peace that we have followed after JFK’s assassination, “peace” in Viet Nam and so many others nations since? We now expect wars to continue until most of humanity is destroyed and the world turned into a Downton Abby without electricity and indoor plumbing. A “peace” brought about by a conflict with bloodletting Muslims following chapters 8 and 9 of the Koran and other teachings? How do you want your New World Order? Would you like it with Sharia, Illuminism, or secularism? Whatever the original vision of the UN was, it will not bring peace.

     

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