Fed Foolishness
January 20, 2005, 04:00 AM
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Fed Governor Ben Shalom Bernanke emitted some pro-immigration warbling at a recent Council of Foreign Relations press conference (where else?)


"I think a very important part of the productivity gains in the past decade were associated with our open immigration policy…If we don`t allow, if we don`t make provision for bright people, whether they be graduate students or professional people to come...that`s a loss to our society and a loss to our potential productivity."

Of course, this makes no sense. The current policy of flooding the country with illiterate, low-quality labor cannot help productivity, which is a mathematical ratio of per capita output  

And why did not this highly sophisticated observer of labor markets arrive earlier at Ed Rubenstein`s view that current immigration distorts the employment numbers and hurts native born-workers—now validated by Bear Stearns (scroll down – 4th item)?

Alas, it appears that Bernanke is just another of those romantics who idolize immigration. At a Chicago Federal Reserve Conference last year, seemingly devoted to helping illegal immigrant escape U.S. regulations, he said: 

"all four of my grandparents [emphasis added] were foreign-born, coming from Europe to the United States either just before or directly after the First World War last year a period, incidentally, that represented a high-water mark of immigration to the United States."

Bernanke knows a great deal about Central Banks. But why should anyone expect him to know anything about America?