Warren Buffett recently joked that he had the ultimate economic plan; all members of Congress would be ineligible for re-election if the deficit were more than 3% of GDP. Buffett has a good idea but I have an even better one.

It would help housing, employment, and increase GDP. Here’s the best part, it would not add a dime to the deficit. In fact, it would decrease the deficit as GDP grows. Furthermore, it would likely attract bi-partisan support. Most of the readers are probably ready to put me in an insane assylum, but just wait..

Its so simple you would think that no one in Washington would have thought of it, since they tend to like to make everything complicated even when its not. However my former Senator, Chuck Schumer thought of a great idea.

Here is Schumer’s proposal:


Earlier this month, Sen. Chuck Schumer (D-NY) and Sen. Mike Lee (R-UT) introduced S. 1746, a bill that would make it easier for foreign nationals to enter and stay in the United States.  Among other things, S. 1746 proposes several changes to the B-visa (visitor visa) program as well as the visa waiver program. Visitor visas include B-1s (temporary business travelers) and B-2s (tourists). (See INA § 101(a)(15)(B)) In general, foreign nationals do not need to obtain a B visa if they are from a visa waiver program country.

In addition, Section 8 of S. 1746 proposes creating a new non-immigrant visa for foreigners who spend at least $500,000 in cash to purchase one or more residences in the United States. While remaining in the U.S., the visa recipient must maintain ownership of residential property worth at least $500,000 and reside for more than 180 days per year in a U.S. residence that is worth at least $250,000. The visa grants authorization to visit the U.S. for a three-year period and may be renewed every three years under the same conditions. The ability to buy one’s way into the country provided for in Section 8 is similar in principle to the EB-5 employer immigrant visa program, which grants a green card to aliens who invest a minimum of $500,000 in a new commercial enterprise that creates or preserves at least 10 jobs.

Other significant provisions of the bill include:

  • Visitor visas (B visas) for Chinese nationals that are valid for a minimum of five years and permit unlimited entry and exit to and from the U.S. (§ 2);
  • The creation of a new “W” visa for Canadian citizens over 50 years old who own or lease property in the U.S., permitting them to visit the U.S. during a three-year period and stay in the U.S. for up to 240 consecutive days at a time (the visa may be renewed every three years and does not permit work authorization) (§ 5);
  • Requirement that the Secretary of State decrease the application and issuance fees charged to visitor visa seekers during “low peak” seasons when demand for such visas are lower (§ 6); and
  • Alteration of the qualifications for designation as a visa waiver program country by alternatively permitting countries who have a three percent visa overstay rate or lower for the previous fiscal year to qualify (§ 7).
I would go further and grant citizenship to wealthy individuals approad, why limit it to a two year visa? The first paragraph mentions China, which I wanted to discuss in particular.
 However, first a quick fact. According to estimates, there are over 1.3m millionaires in China. It is hard to get exact stats on those millionaries, however, recent studies put the total number of Chinese with over $30million at 46,000 people; giving them a cummaltive wealth of close to $1.4 trillion. People with $30million will not be stealing American jobs, they will be spending, saving, investing, and creating jobs. This would seem to be a non-partisan issue to both protectionists and free trade advocates…
 Below is a great article from the WSJ, which discusses how 60% of Chinese millionaires want to leave the country. Most want to leave the country for the same reasons that immigrants originally flocked to America’s shores. Assuming we changed our absurd immigration policies and 30% of these “$millionaires” came to America it would it would be an immediate injection of $410 billion into the US economy. My readers are smart so one can only imagine how much this would help the housing market, deficit (these people will likely be paying taxes on whatever businesses they set up), and injecting the economy with 100s of billions of dollars, all without spending a penny. Here is a stimulus plan, which should pass in Congress 535-0.
Interesting chart I found on Credit Write Downs:
reasons why chinese move overseas
Below are some brief excerpts from the WSJ article:

More than half of China’s millionaires are either considering emigrating or have already taken steps to do so, according to a survey that builds on similar findings earlier this year, highlighting worries among the business elite about their quality of life and financial prospects, despite the country’s fast-paced growth.

The U.S. is the most popular emigration destination, according to the survey of 980 Chinese people with assets of more than 10 million yuan ($1.6 million) published on Saturday by Bank of China and wealth researcher Hurun Report.


chinese immigrants countries

Many Chinese who have profited most from the country’s growth also express increasing concerns in private about social issues such as China’s one-child policy, food safety, pollution, corruption, poor schooling, and a weak legal system.

Mr. Hoogewerf said respondents with assets of 100 million or more were even more inclined to emigrate, with 55% considering leaving China, and 21% already living overseas or having filed applications.

The top destination among those emigrating was the U.S., accounting for 40%, followed by Canada with 37%, Singapore with 14% and Europe with 11%, the survey showed.

One-third of respondents said they had assets overseas, and an additional 28% said they planned to invest abroad in the next three years. Half of those with overseas assets listed their children’s education as the reason, while 32% cited emigration.

The U.S. was the most popular destination for their investments, accounting for 42%, and property was the most popular type of investment, accounting for 51%, according to the survey.