U.S. corporations have also managed to expand their labor pool to include overseas workers. Even this offshore labor force helps protect the U.S. economy from inflation. Wages would rise rapidly, too much money would be chasing too few workers and goods, and inflation would pick up. The Fed would then squeeze the brakes on monetary policy and sharply raise interest rates. All this could happen if the United States shuts its doors to immigrants.
All nations can experience labor shortages in skilled professions, such as computer programming.
But the United States has an easier time recovering from these than most. One explanation is the worldwide use of English among skilled workers. For some observers, such as Kaoru Yosana, Japan's minister of international trade and industry, English alone explains America's appeal to workers. It is no wonder that more people are choosing the riskier U.S.-bound path. Stock options are a global magnet for the high-tech elite, regardless of their places of birth.