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Unleash Prosperity Hotline
Issue #1354
9/22/2025
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1) Don’t Tax the Brainiacs
As we've shown many times on these pages, the ability of the U.S. to import the highest skilled immigrants from around the world is one of America's greatest comparative advantages.
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China, Japan, India, and the UK spend hundreds of thousands of dollars to train and educate these workers and then WE get the fruits of their labor. It's reverse foreign aid from the rest of the world to America.
Especially beneficial are the H-1B visas that are awarded to scientists, engineers, computer programmers, physicians, technicians, pharmacists and the like with special skills. There would be no Silicon Valley dominance without these "brainiacs."
If you think we are exaggerating, consider that these three immigrants came to the U.S. as students and entered the workforce on H-1B visas.
* Sundar Pichai (CEO of Google)
* Satya Nadella (CEO of Microsoft)
* Elon Musk (Founder of Tesla and SpaceX)
What has been the payoff from that? Our best guess would be somewhere around $3 to $4 trillion in GDP and hundreds of billions in tax revenues.
You never know who the next Elon Musk will be, but there's a pretty good chance he/she will be an immigrant or the son or daughter of an immigrant.
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That’s why the new $100,000 fee that the Trump Administration has proposed per H-1B could be prohibitive, and if so will cost far more in foregone tax payments than it hopes to raise.
The current system is already too bureaucratic and expensive. But if we are going to charge for these visas, it would be much better to auction them to the 100,000 to 200,000 highest bidders than to impose a flat fee.
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2) School Performance Was ALREADY In Steep Decline Before COVID Closures
Yes, the idiocy of COVID school closures yanked down test scores. But a new analysis of the education performance of grade school children by Hoover Institute education expert Eric Hanushek shows the great American education crisis began years before COVID.
Here's what Hanushek told the Senate in testimony last month:
It's time to look past pandemic remedies to more fundamental problems. The pre-pandemic school system was in steady decline, and building on it was never likely to be a viable recovery strategy. A half century of experience indicates that improving schools to be globally competitive and narrowing the existing achievement gaps require deeper changes in the incentives that drive achievement.
...scores for eighth graders rose in the beginning of the century but started falling in 2013. The fall was more precipitous during the pandemic period (2019-22) but continued in the "recovery period" (2022-24). The average math and reading decline from 2013 to 2024 was 0.28 standard deviations. Just half of this occurred in 2019-22.
The decline in scores has also been accompanied by a widening of the achievement distribution: lower-achieving students have suffered greater declines than those at the top of the achievement distribution. And, again, while the pandemic led to public concerns about disparate impacts on disadvantaged students, this increased spread in learning actually began in 2013 and continued through 2024.
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A lot has to change, but one obvious first step would be to stop allowing members of one of the most radical political organizations in America - the teacher unions - to mis-educate our kids.
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3) Don't Cancel Speech, Cancel The FCC
As with our friends at the WSJ editorial board, we’re getting nervous about a new “cancel culture” trend on the right. Brandon Carr, the chair of the Federal Communications Commission, threatened to revoke ABC's broadcasting license if they didn’t “take action” against Jimmy Kimmel: "Look, we can do this the easy way or the hard way. These companies can find ways to change conduct, to take action, frankly, on Kimmel, there's going to be additional work for the FCC ahead."
Texas Senator Ted Cruz, chair of the Commerce Committee, says that Carr crossed a line. "That's right out of 'Goodfellas.' That's right out of a mafioso coming into a bar going, 'Nice bar you have here. It'd be a shame if something happened to it.'"
This is the same abuse of power that the Biden administration asserted to bully companies to change their behavior and bend to the left’s political will. Remember, many AOC and Elizabeth Warren disciples have used ugly tactics to call for the firing or silencing of media figures they didn't like, from J.K. Rowling and Dave Chappelle to Joe Rogan, to us!
A good way to end these dangerous threats to our First Amendment right to free speech would be to shut down the FCC - an obsolete relic of the New Deal era.
Tom Hazlett, a former chief economist at the FCC, has documented how the authors of the 1927 Radio Act that presaged the 1934 creation of the FCC, "explicitly wanted to keep (broadcasting) authority centralized and political, sidestepping the free speech protections of the First Amendment."
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4) Public Support For Higher Education Is Collapsing
Has any institution fallen in esteem faster and further than higher education?
Back in 2010, three-quarters of Americans rated having a college degree as "very important." Today, only about a third (35%) believe that. A quarter of people believe it's "not too important."
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And skepticism is growing strongest among people aged 18-34 and those who have college degrees, a signal that the status of college will fall further in the years ahead.
The factors behind the fall include the soaring cost of college, better-performing trade schools and the growth of alternatives from online learning to AI and competency-based "microcredentials."
Bryan Caplan, an economist at George Mason University, says his work indicates that college is still worth pursuing for "A" students in high school. "B" students should focus on economics, engineering and other majors that deliver a strong return on investment.
It's high time for us to insist that normal economic return calculations apply to higher education. Education expert Richard Vedder of Ohio University says that no industry/profession has had lower productivity gains than universities - with the possible exception of prostitution.
Reform should start with limiting tax-deductible donations to the 100 most well endowed elite universities, which today act more like investment banks that happen to have classrooms and students. Open the Books, a watchdog group, reports that "American taxpayers contribute more to these universities than the students and their families do through tuition payments."
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5) Now That's Real Diversity
Speaking of college campuses, isn't it amazing that the very people who preach diversity and inclusion are the least diverse and inclusive people on the planet?
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