Comment by rayiner
2 days ago
> and bad only for the countries that suffer the brain drain.
That's a pretty big qualifier!
> The damage to those countries from losing talent is smaller than the benefits to the immigrant, their new country, and ultimately all of humanity
Isn't it the opposite? Creating wealth and technology in India helps a billion quite poor people. Creating wealth in the U.S. helps 300 million already rich people.
Except you can't create Google in India. Google isn't minted by divine inspiration hitting a couple of smart guys in a garage.
It's created by an entire ecosystem that allows a project like that to be conceived and executed in such a way that has benefited the entire world, including the poor in India.
It's a big qualifier, but like I said, it's not zero-sum.
No economist will argue that limiting skilled labor immigration (or any immigration, really!) is an optimal policy for improving the lives of the poor elsewhere. It just doesn't work that way.
That's why I said long term. This logic might as well argue it would be better for China to have had huge immigration to the US 50 years ago and contribute to the manufacturing or automobile industries there. But they didn't, and now they've built up their own ecosystems instead that are more efficient and ahead of the US' ecosystems. You can create Google in India or BYD in China, it just takes time for the ecosystem to build. It has helped China at least, and maybe the world more than if they had immigrated en masse.
The other line of argument is again the fault-tolerance I mentioned above, maybe see Taleb or distributed systems. Maximizing efficiency has trade-offs in resiliency. Yes it might be less efficient for there to be 3 ecosystems in 3 countries instead of 1, but its more resilient to shocks. We saw the risks of highly efficient but single point of failure supply chains materialize just a few years ago during the pandemic.
It's also pretty obvious that the tech companies being in the US benefits the US more than other countries. The big salaries are in the bay area, the tax revenue goes to the US, all the ex-Googlers founding new companies found them in the US etc.. So of course Google being founded in country X would benefit country X more than it being founded in the US.
> So of course Google being founded in country X would benefit country X more than it being founded in the US.
Exactly. Obviously it’s better for China that BYD and Huawei were founded in China rather than the US. It’s better for Korea that Samsung and LG were founded there instead of the U.S.
China created those ecosystems because of Western companies who offshored their manufacturing, with the ultimate goal of having cheaper goods and services.
It wouldn't have been able to do it without US companies, and it's not particularly a model that can be replicated that easily, though in general, economic policy that focus on exporting goods indeed tend to be the most successful.
Still doesn't mean the US should be preventing Chinese from immigrating here, so it's just utterly besides the point.
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I doubt its better for India to have Indians making Google richer than to have them staying in India to make something even a fraction of the size of Google in India. How is India going to create that ecosystem if all the smart people leave?
It's better to not frame this in terms of a specific country, lest it come across as if we're picking on India specifically.
Developing countries have structural reasons for why they are underdeveloped. This is a very complicated topic, and one for which there is no shortage of academic interest. I suggest starting from William Easterly's "The Elusive Quest for Growth".
I quote here from the book review MIT Press:
> What is necessary for growth is that government incentives induce investment in collective goods like education, health, and the rule of law
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This is the correct answer. Concentration of talent creates cross pollination and collaborative learning. The innovation is then exported.
The innovations immigrants created in the UK during the Industrial Revolution made everyone wealthier. The innovations made by Immigrants in in Silicon Valley have made the world more wealthy. And it was in part due to the concentrated talent pool that made it possible.
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https://en.wikipedia.org/wiki/Marc_Isambard_Brunel, who constructed the first underwater tunnel (but had a productive career in England before that).
I could probably find other French engineers fleeing the revolution, if need be.
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