Chinese Millionaires Can Solve Our Economic Crisis

Thursday, 03 Nov 2011 09:30 AM

By Jacob Wolinsky

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The eurozone literally looks like it is on the verge of collapse.

America is stuck in a sluggish growth period and civil unrest, which is increasingly getting violent.

While China is facing problems, the country has $3.2 trillion in foreign currency reserves, and disappointed analysts by “only” growing 9.1 percent last quarter.

China would seem like the ideal country to live in. Many colleagues of mine have set up funds in China, and there are tremendous opportunities considering the enormous population and natural resources.

No rich Chinese citizen in their mind would want to leave this golden land to come to America or Europe; so it would seem. According to a recent article in The Wall Street Journal, a mind-boggling 60 percent of Chinese millionaires have already or are considering emigrating from their country.

Most of them are moving to the U.S. and Canada. Why leave such a prosperous land? According to the article, they came for the same reason people have always come to America; freedom, safety, better education, and less pollution (I hope the EPA reads the article).

The U.S. is in a big mess which is really hard to get out of. Cutting government spending drastically and quickly can lead to a Greek type situation. Greece had 8 percent unemployment in 2009; they implemented austerity, which led to 16 percent unemployment. On the other hand, the Obama plan of just borrowing and spending has the same risks of destroying the economy.

There is one easy solution, which Sen. Charles Schumer, D-N.Y., proposed.

While the exact details were not laid out, he proposed granting residency to foreigners who buy US homes. China is a good place to look for potential foreigners to participate in this type of plan.

According to recent estimates, China has over 500,000 millionaires. It is fair to say that if they were offered a chance to immigrate to America, a large percentage would. Most would likely buy expensive homes. This would be a big boost for the housing market and the banks.

Additionally, the ripple effects would reverberate throughout the economy. Airlines that flew from China to the West coast would have a large increase in the number of passengers. The airports would benefit.

These Chinese entrepreneurs would also spend a lot in the U.S. and possibly set up new businesses.

The result would likely be millions of new jobs, a boost to the housing market, and a growth in overall GDP. This plan would not add a dime to the deficit, in fact, it would decrease it by boosting economic growth.

I joke to foreign colleagues who want to move to the U.S. that the only way to get in is across the Mexican border. All that is needed to implement this plan is logical immigration reform, which makes it easier for entrepreneurs to immigrate.

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