As a software entrepreneur the past 10 years or so, I’ve found cash and talent to be in limited quantities. It is increasingly difficult to get the most talented software developers and managers when competing against big companies (um, that big company east of Seattle) that can offer more compensation, benefits, and stability. It isn’t impossible, but it poses a hard problem for aspiring and experienced entrepreneurs. One of the most frustrating parts is that the talent is available and willing to work if the US would just let them do so. This is definitely debatable, but I’d argue that our economy and our workforce will improve in the long-term if we just relax our immigration policy. I admit there may be some short term pain, but the long-term gain will more than justify the short term pain. In fact, I think for the companies I’m involved with, relaxing the immigration policy would provide even more stable employment for our workers. Here’s why…
We all have limited budgets and we can only afford to hire against our limited cash. We’re currently short about two developers. In Seattle, to be competitive for an experienced engineer, you need to be in the range of $100K-$120K/year (obviously, it can be a little higher or a little lower). We can hire an experienced engineer potentially at $80K-$90K that is not a US citizen, but would be excited to live in Seattle and work here. We could hire three engineers, get more innovative, grow more quickly, and stay ahead of our competitors with three great hires. Plus, we could find those engineers more quickly and get them up and running pretty quickly. I understand that this may “supplant” two US-born engineers, but I’d argue that it does not. First, for all of our current employees (especially engineers), this potentially would make our company more stable because we can get more accomplished per unit of cost (given that we’re working on the right stuff). Secondly, if our margins continue to increase, we would continue investing in the business thus allowing us to promote from within those that are performing and bringing in new talent behind them. Thirdly, many of these “new” employees are probably trained at universities locally and have built roots here as well leading to a more loyal, stable, and experienced workforce. This, in effect, also benefits the ecosystem as these experienced engineers make it easier for more entrepreneurs to innnovate and create more opportunities - some may even become entrepreneurs themselves and hire more engineers both US-grown and foreign-born. I’m a big skeptic of the zero-sum game that so many immigration-skeptics argue, the more talent we bring increases our output, innnovation, and the savings and investment character of the immigrants also lend to a more stable economy.
Long-term, having a more open immigration policy especially as it relates to high-tech will allow the US to compete more effectively in the global marketplace. Already, it’s becoming increasingly difficult to compete with labor costs so high and similar companies offshoring or starting development offices abroad. Taken to its end, our policy may make it extremely unattractive to start companies in the US, rather it becomes a competitive advantage to start elsewhere. In fact, I’d argue by having a more broad immigration policy and allowing the best to compete for jobs in the US actually forces the US to innovate more. Protectionism at its worst keeps our employees and workers doing work that is quickly becoming obsolete. Having the best and brightest here keeps us innovating on what the next cutting frontier of the knowledge economy will be.
I admit that I’m not an immigration expert and I’d love to have those who have thought more and harder about this than I comment below, but as an entrepreneur this is one issue I believe we cannot let our guard down. Our country was founded by immigrants and made great by immigrants, let’s keep them coming and I’m willing to bet that our economy and society is better because of it. What do you think? As an entrepreneur do you agree? As an employee, what do you think? Let’s have a healthy debate.
Andy, with all due respect, you’re an idiot.
j/k. i’ve always felt that out-sourcing is good for the economy in nearly all respects. Open competition is always good! Sure there are a lot of buggy makers who were out of jobs when the car came along, but that doesn’t mean we should stifle innovation! let the market correct itself!
You might want to read the stats from my blog relating immigration and innovation. Its shocking.
http://www.globalimmigrationblog.com
I agree with you, Andy. Plus, from a public policy perspective, we need more people who are actually working to pay for all of the benefits we’ve promised to our growing number of retirees!
Andy, you just wrote what I always thought. I think bringing in talented people would benefit any country. If you imagine the countries of Earth as human parts, and the US as the brain (meaning they only think of ideas and make plans while others execute the actual work, like China/India/etc. currently does), it would make sense to bring the best and brightest in (which is what the country’s been doing for over a hundred years now).
The politicians enact these laws for people who just come into the country and do nothing (hanging on welfare, begging, crime, etc.), but unfortunately many good and smart people are being refused entry automatically, without much extensive checks (to an extent, this will actually allow in only those who really want to- and are smart enough to- immigrate or come for work).
Another option is to organize an efficient way to do everything remotely…
Andy,
you should check out Paul Kedrosky and Brad Feld’s op-ed in today’s Wall Street Journal:
“Start-up Visas Can Jump-Start the Economy”
http://online.wsj.com/article/SB10001424052748704402404574525772299940870.html
Some interesting thoughts to consider and debate.
i think relaxing immigration or doing something like the startup visa is a good thing, if you want to hire locally. but what if you want to organize a distributed team? (think Basecamp). does it really matter then?
Two thoughts. If your company is that strapped for talent, you can move the whole operation to India. Lots of talent and everything else is cheaper as well.
Secondly, we already have relaxed immigration. Walk the halls of Microsoft. Half, if not more, of the employees have immigrated to the U.S. They go to MS because they provide free services to get a work visa and permanent resident status. Sorry, but all those cheap laborers are not going to flock to a shoestring startup with the risk of being shipped back when their visa ends. Instead they’d rather crank away on pointless projects like Windows Mobile, but have a better chance of staying here.
I can’t agree more.
You and I both are descendants from people who come from far away from the pacific coast of north America. The best people who have ever worked for me know what it is like to have starvation right around the corner. I have enough experience myself at that to appreciate it.
Most Americans I find have lost their zest for working and do it begrudgingly to get what they want. I love the guy (myself included) who love to work for the things we create.
Give the job to the guy who will work the hardest, and produce the most. Let’s fill our country up with hard working, ethical, creative, bright folks, who are willing to do whatever it takes to succeed.
The country that can attract those people will always win long term.