Yet Another Easy
Business Decision to Make
In the last Business Network Quarterly, we reported on the threat of foreign, dark, and unrestrained political spending to the U.S. way of life. Maintaining and growing our position among the world’s most influential economic forces faces extreme challenges due to this unrestrained outside political spending. We further explored this topic in May as part of our Leadership Series when we were honored to host Michael Donnelly, chief economist at IBM, and Maureen Kline, the vice president of public affairs and sustainability at Pirelli Tires.
During this discussion, Donnelly explained how the U.S. is facing a brain drain from both declining domestic college enrollment and the decline of foreign scientists coming to the U.S., reversing a decades-long trend of a positive scientific inflow. In particular, the rampant foreign, dark, and unrestrained money in our elections creates a rent-a-politician scheme that politically polarizes legal immigration reform, making it nearly impossible to implement, putting all American businesses at risk. This has terrible long-term implications for the U.S. economy. Donnelly warned that China, in particular, is winning the war for highly skilled talent immigration. For example, in 2017, the U.S. welcomed 4,292 published research scientists (on net), China welcomed 116, and non-U.S. OECD nations lost 2,927. But by 2021, the U.S. had 4 scientists leave (on net), China welcomed 2,408, and non-U.S. OECD nations enjoyed the influx of 1,792 published scientists. We are losing the war for highly skilled talent. China is beating us, and sadly it is our own government forfeiting the war by allowing highly skilled immigration to be an unsolved partisan issue for far too long.
If this brain drain seems abstract — let’s give a real-life example. In 2009, a then-unknown Turkish scientist, Erdal Arikan, graduated from MIT and then worked as an assistant professor at University of Illinois. But he was unable to get an academic appointment or funding to work, so he returned to his home country. Once back in Turkey, Arikan turned to China. It turns out that Arikan’s insights were the breakthrough needed to help China leap from 4G telecommunications networks to 5G mobile internet services. China’s national telecommunications champion, Huawei, used Arikan’s discovery to invent some of the first 5G technologies. Today, Huawei holds over two-thirds of the patents related to Arikan’s solution — 10 times more than its nearest competitor.
“Had the United States been able to retain Arikan — simply by allowing him to stay in the country instead of making his visa contingent on immediately finding a sponsor for his work — this history might have been different,” Donnelly noted.
Beyond the U.S. losing the 5G jump to Huawei, anyone in business knows you never want your competitor to gain on you. Further downstream, China’s Tongwei has now captured the manufacturing of 80% of the world’s solar panels. And you guessed it, Tongwei used Arikan’s breakthroughs to increase their productivity using 5G capability. Tongwei used hometown 5G technology from Huawei to increase their productivity 161 percent, and lay off workers by 62%. This technology has enabled Tongwei to be the largest and most competitive solar panel producer in the world.
The skilled scientist “brain drain” extends further. Donnelly also discussed the end of the U.S. patent advantage. For example, in 1990 for every patent China created, the U.S. created 17. By 2021, unfortunately the ratio is inverted, for every three patents China created, the U.S. created only one. This has led to lower productivity in the U.S., from 2.8% annual growth in the 1960s, to 2.0% annual growth from 1970-2009, and dropping to 1.4% from 2010 to 2020.
The U.S. Chamber of Commerce warns the U.S. needs an “Operation Warp Speed” approach to cure the existing worker shortage, including reforms such as doubling the annual quota on the issuance of H-1B visas for high-tech workers, doubling the cap on employment-based immigration from 140,000 a year to 280,000, providing international students who graduate from U.S. universities with more opportunities to obtain employment-based green cards upon graduation, and expanding and enhancing the opportunities for entrepreneurs to obtain permanent residency so they can build their business here in the U.S.
This is an American problem, not a party problem.
At the American Promise Business Network, we never point fingers at either Republicans or Democrats, we know this should not be a partisan issue. Our goal is to unite voters to change the rules of the current political system and nullify the court rulings which allow dark money, foreign money, and big money into our political system – destroying trust in government, parties, and big business. This big money only increases the partisan divide, and decreases bipartisan legislation. To accomplish the goal to restore trust, we need to know our legislative and executive branches are making decisions free from the corrupting influence of money in politics, which is currently happening on both sides of the aisle. How do we make this happen? Permanent reform through an amendment to the U.S. Constitution.
Thank You Pennsylvania – an Update!
You may have heard the news in June the Pennsylvania House passed HR 317 with a bipartisan vote! This is a tremendous win for everyone in Pennsylvania and around the country who is tired of seeing money influence their elections – and is fighting to see the For Our Freedom Amendment ratified to the Constitution.
With the passage of HR 317, we are one step closer in Pennsylvania to being the 23rd state ready to ratify the amendment. American Promise wants to thank everyone who helped make it possible. To everyone who contacted their legislators, signed the citizen pledge, participated in a text and/or phone bank, and who shared the mission of American Promise with their friends and family, this victory is made possible because of you. Thank you. While we still have work to do in Pennsylvania, let’s celebrate this win and use that momentum to pass SR 212 in the Senate and make Pennsylvania State number 23!
Our success on HR 317 is proof that simple steps are effective in making a meaningful difference. So I ask that you keep it going! In every state, Letters to the Editor are extremely important; not only do they help legislators know how you feel, they help to inform your neighbors and other community members about what we’re trying to achieve. Writing one now is easier than ever, too — you can include the fact that HR 317 already passed with bipartisan support, which is a great way to bolster the argument that we can and will get this done for America.
Join the Movement for Positive Change
The For Our Freedom Amendment is the answer to restoring trust in our legislative and regulatory processes. A key aspect of seeing this through is having businesses on board to accomplish the systemic reform we need so our economy can grow and flourish without the corrupting influence of money in elections. No business is too large or too small to play a part. Learn more about how you and your business can be part of this historic reform through the American Promise Business Network.
Once the For Our Freedom Amendment passes and reasonable restrictions are put in place with regard to campaign finance, legislators will have much more time to meaningfully address the problems in our economy by studying and addressing the critical issues for businesses. This depoliticization of capitalism is welcome news to stakeholders and citizens, thus allowing companies to stay in their swim lanes — and contribute to society through the boundless innovation we’ve come to associate with American ingenuity.
A Rotary District Governor comes to NCLC!
American Promise was thrilled to host our first Rotary Governor at our National Citizen Leadership Conference in June! NCLC was a great success with hundreds of our volunteers flying in for a full day of speakers and working sessions, followed by over 105 constituent legislative meetings on Capitol Hill the next day. The Rotary Network is one of the oldest networks at American Promise, and this is the first time we had a district governor attend. A big thank you to Mr. Herb Smith, 7360 district governor based in Hagerstown, Md., whose district comprises Pennsylvania and West Virginia.
District Governor Smith not only attended our educational sessions, he was also our featured guest during an early morning Rotary breakout session. Our young Rotaract, Zachary Weaver from Kansas City, Mo., led this interview with Smith, including asking questions about his biggest challenges in his District this past year and how to best apply the 4-Way Test to encourage civic engagement while not contributing to the partisan divide. Most importantly, Governor Smith gave general tips for our American Promise volunteers for how to give the best presentations to Rotary Clubs around the country. Check out the full interview here.
Our American Promise volunteers were thrilled to have Mr. Smith attend and participate. In fact, I heard back from all our Rotarians that our Rotary breakout sessions exceeded all expectations! Thank you, District Governor Smith! We look forward to continued work with you across our great country.
Join The Business Network
So much of our success is contingent on participation from businesses across America. It’s easy to join the Business Network and you can engage at whatever pace is best for you. The Business Network is a nationwide group comprising thousands of business owners and executives who share a common belief: that the influence of money in politics is detrimental to business.
First, join the Business Network to be included in our quarterly updates inviting you to exclusive business education and networking events. Next, be sure to also add a customized statement of support for the For Our Freedom Amendment.
Once you’re signed up, check out our new Action Center, featuring on-demand information videos about the American Promise Business Network and training. Meet Rotarians from around the country who are leading the way in the For Our Freedom Amendment campaign, while learning about the Rotary’s Four-Way Test and 8 Pillars of Positive Peace. Lastly, you’ll be given the tools and guidance you need to do successful Rotary outreach in your own state to help win the For Our Freedom Amendment. Be sure to keep an eye out for even more Action Center training and support materials specialized for our Chamber of Commerce outreach by year’s end.
If you’re interested in more information about the Business Network, reach out to John McCrea at johnm@americanpromise.net.
Upcoming Events of Interest:
Have you ever wondered who’s really behind the donations to your elected officials? Look no further than Open Secrets, and hear Hilary Braseth discuss the organization’s mission, operations, and the role of transparency in political funding. Please register for this event here.
With gratitude for both your interest and support for American Promise.
Gratefully,
John McCrea
Director Business & Civic Networks
American Promise
SOURCES
To check the stats used above, please refer to the IBM Mike Donnelly source document here.
