23 April 2009

Pinto's Point

America's immigrant ingredients

By Jim Pinto

In a fast-changing world, the drag on Western Europe and Japan is their own insular, old cultures, relatively rooted in long history. Europe is changing with immigration between members of the European community, though the changes are not easily accepted by the established cultures.

By contrast, America is completely different. The country was founded by immigrants, and its culture was an eclectic integration of many cultures, more than anywhere else in the world.

The thing about immigrants—and this applies today as it did throughout history—is their willingness to adopt the ways of their new country, and to work hard to succeed in their new world. That is what made America what it became. Those are the roots of the “American Dream.”

The first Americans were predominantly Europeans. There were Chinese and others too, but they seemingly adapted to the Euro-like cultures. Strange names were shortened, or usually anglicized, as they became the new Americans. This was the spirit and enterprise which built the most successful, powerful, and admired country in the world.

Today, America itself has become an “old country.” Paradoxically, the nation of immigrants does not like immigrants. Especially in a down economy, old Americans are uncomfortable and resentful of immigrants who are seen as “taking their jobs.” Often, immigrants are confused as being “illegal,” even when they are not.

This resentment is not focused on just low-end jobs. Consider why immigrants seem to become successful in many technology and automation companies.

Many immigrants are engineers who came to the U.S. for higher studies. Some came with a one-way ticket, a few dollars in their pocket, two suit-cases (one full of books and one with clothes), and a letter of acceptance from an American graduate school.

As these people were growing up (during the 1970s and 1980s) their backs were pretty much to the wall; failure was not an option. Immigrant parents put a lot of value in education; their kids are driven to do well academically and to work hard to succeed.

In Engineering, as in Medicine (count the number of immigrant doctors in major hospitals), because of their educational and cultural background, these people kept rising to the top. Engineering requires engineers who spend long hours to learn and think. Through hard work and good results, immigrants start moving into management jobs, at a higher ratio than the average worker. And sometimes, the success of these new elite is resented by the “old guard.”

Now, here is a twist. New York Times columnist Tom Friedman quotes the editor of a newspaper in India, who (tongue in cheek) proposes immigration as the cheapest and surest way to stimulate the American economy. That editor wrote:

“All America needs to do is grant visas to 2 million Indians, Chinese, and Koreans. They’ll buy up all the sub prime homes, work 18 hours a day to pay for them, immediately improve the savings rate. (Chinese and Indian banks have very few non-performing loans because personal bankruptcy is considered shameful.) These immigrants will start new companies to create their own jobs and jobs for many more Americans.”

Tom Friedman adds his own plea:

“America, please remember how you got to be the wealthiest country in history. It wasn’t through protectionism, or state-owned banks or fearing free trade. No, the formula was very simple: Build this really flexible, really open economy, tolerate creative destruction so dead capital is quickly redeployed to better ideas and companies, pour into it the most diverse, smart and energetic immigrants from every corner of the world.”

Think on this: Are you part of the “old” America? Or the new?

Related links:

• Immigration: The Living Mosaic of People, Culture, and Hope:
  http://library.thinkquest.org/20619/index.html
• Tom Friedman - The Open-Door Bailout:
  http://www.nytimes.com/2009/02/11/opinion/11friedman.html?_r=3
• The Impact of Immigration on American Society
  http://borderbattles.ssrc.org/Hirschman/

Behind the byline

Jim Pinto is an industry analyst and founder of Action Instruments. You can e-mail him at jim@jimpinto.com or view his writings at www.JimPinto.com. Read the Table of Contents of his book, Pinto’s Points, at www.jimpinto.com/writings/points.html.