The Trillion Dollar Solution to the Trillion Dollar Problem: Give US Nationality to Those who Buy $1 Million in US Real Estate

We live in a strange world now. A world in which Western democracies are broke and totalitarian regimes are flooded with cash. Examples of people with cash: the Saudis, the Chinese, the Russians. Example of people without cash. The Americans. So how can we make the people with cash give to the people without cash without dealing with their totalitarian regimes? Well, the U.S. has been doing a lot of that already by selling them US government debt. But these are desperate times. The U.S. now needs another $700bn to shore up its financial institutions. How could it possibly get this money. Here is an idea: the U.S. should give U.S. passports to those who invest over $1 million in equity in American real estate.

We know that most wealthy people in China live double lives. On one side praising their government and on the other side worrying that one day privileged lives will end. And same is true with oligarchs in Russia, and wealthy people in Iran, princes in Saudi Arabia. I am not saying they live in daily fear but if the United States offered a passport to be used in case of need I think millions around the world would pay for the "insurance." There are 6.5bn people in the planet and 6.3bn are not American, tens of millions of those are pretty well off -- one million may go for this offer, at the same time that U.S. real estate prices are on a free fall, which is why mortgages are defaulting. So how about combining greed and fear outside the States into one package that gives foreigners both access to US real estate at bargain prices and US nationality?

To me the math is compelling. If one million foreigners invest one million dollars, that adds up to the trillion that America needs. There are of course many other combinations and many other potential results both better and worse but all add value to the American real estate market at no cost to the taxpayer. Moreover, America's treasury will not need to raise more debt this way because real estate prices will go up as a result of the added demand and mortgages will not default. And if eventually those million very-rich people end up moving to America, more investment will follow. America should not fear well-off immigrants who are much more likely to create jobs than take away American jobs. There are already many countries that give you residence and eventually nationality if you invest with them. Moreover there are already programs that give immigrants visas if they invest $1 million and there are green card lotteries. So this idea, as strange as it sounds to some is already somehow being implemented. But if what we are looking for is quick foreign equity investors for US real estate I cannot think of an easier way of raising funds. Foreign investors would get both a real estate bargain and a US passport (after all the appropriate security checks).

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Comments

[Hdaryl01]

It sounds like a great plan. And, we might just be able to pull it over on the rich Saudis, Russians, etc. who still want to live here. However, I think it would end up only being a stop gap measure. One that will be offset by the rich, entrepreneurial americans leaving-en masse. I'm off to Panama in 3 weeks.........a friend in California just shuttered his law office, laid off his staff of 5 and moved to Buenos Aires.....­.....anoth­er friend just reverse emigrated to the Czech Republic-the birthplace of his wife........good luck everyone!

[CountryBumpkin49]

The congress should vote to reinstate the Securities Turnover Excise Tax. This would pay back the taxpayers in a few years and would also act as a stabilizing force on the markets. In a way the folks who caused the mess will actually pay to clean up the mess. What a unique concept.

[huffpocomments]

There's already a program for that purpose -- permanent residency through investment:
http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176543f6d1a/?vgnextoid=4ff96138f898d010VgnVCM10000048f3d6a1RCRD

You can't get naturalized without permanent residency first.

[nhplanner]

I think this is a great idea! Immigration has always been the lifeblood of our economy. Many immigrants who come to our country are very poor and need help starting out; this is why many people have an unfavorable view toward immigration in the US. Why not have a more balanced immigration policy and encourage affluent immigrants to come and invest in our country?

[cadawa]

This is a really dirty bandaid.
One of the reasons that Seattle real estate has become one of most inflated in the nation is because of a large amount of foreign investment. Most of the people that work in King County cannot afford to live in King County, Wealthy people have a habit of moving their money out of sectors that don't provide excessive amouunts of unearned income which has the effect of undermining not strengthing the economy.
Why should we offer the homes that hard working Americans have often through no fault of their own. to wealthy foreigners? This plan has the appearance of kicking these people to the curb.
Housing prices need to be in line with what buyers earn which they haven't been for a decade because of just this kind of speculation.
Providing affordable housing for all of its citizens should be a primary goal of the American economy and the government.

[Martin Varsavsky - Huffpost Blogger]

Cadawa if that is your view and Congress does nothing there will be plenty of opportunities for affordable homes, but also plenty of homeless Americans.

[macohmz]

First we need to check the washers and dryers in the congressional laundromat.

[politicky]

Yeah, and this guy, also. The political financial and social systems in Mexico are still very close to feudal. This guy benefits wildly.

The World's Billionaires
#2 Carlos Slim Helu & family
http://www.forbes.com/lists/2008/10/billionaires08_Carlos-Slim-Helu-family_WYDJ.html

Meanwhile, the poor from Mexico pour over the border by the thousands in order to escape that feudal system.

[LiarLiarIraqsOnFire]

Oh, even better, why don't we let one of those Russian or Chinese Oligarchs lease The White House & Congress for 8 years, in exchange for $1Trillion.

[Henry]

Martin,
You win the award for the worst idea of all time. Pinch yourself! This is a quintessential battle with notion of identy. It is our problem and external "funny" money as a fix puts us right into the middle of the Bushwa brand of ignorance that is sustainable only as ignorance.

[Martin Varsavsky - Huffpost Blogger]

Henry, as the other commentators say USA already has green card lotteries and investment visas. What do you prefer as a US taxpayer, to have a package that costs $100K per American and piles up debt or an equity infusion of the kind that I recommend at no cost to the US taxpayer?

[plebeianswillrevolt]

As you kow, it would beat the hell out of giving Nationality to those pregnant ones who sneak under a fence, get a free ride to ElPaso General, have a free delivery andgive birth to a National (liability).

[utleftie]

You're kidding...right?

[LiarLiarIraqsOnFire]

No, pleb isn't kidding.

See what happens when you let paranoia, fear and hate to rule your life.