On Nov 8, 2:47 am, "(David P.)" <
imb...@mindspring.com> wrote:
> How to Price US Citizenship
>
> Nov 05, 2009 - By John Quelch
>
> In the for-profit sector, there are three basic ways
> to price a product: The cost plus profit margin method;
> benchmarking versus competition; and pricing based on
> customer value. But how should we think about pricing
> in the public sector? Let's take an unusual example:
> the price of US citizenship. Legal immigrants to the US
> who are resident for 5 years (or 3 years for those who
> marry a US citizen) can apply for US citizenship.
> Currently, citizenship application and processing fees
> in the US are $675 per person, up from $60 two decades
> ago. These fees, which exclude the costs of individual
> legal assistance or private citizenship classes, were
> increased by 69% in July 2007. The basic fee is $595;
> a biometrics fee adds a further $80. Comparable fees in
> Australia and Canada are around $200 (and the Canadian
> residency requirement is just three years).
>
> Let's assume that the $675 reflects current costs, given
> publicly funded citizenship classes, law enforcement
> background checks, office processing, candidate inter-
> views, & swearing-in ceremonies. What then is the value
> of becoming a US citizen rather than remaining as a legal
> resident? New citizens get to vote, apply for federal
> jobs, and bring their families to the US. They also join
> the most exclusive 300 million member club in the history
> of mankind. How much is that worth? Not $675, at least in
> the eyes of 90% of 8 million legal residents eligible to
> become US citizens each year who forgo the option. The
> number of US citizenship applications from legal residents
> dropped by 50 percent in the two years after the price
> increase. As a result, the Fed agency handling citizenship
> applications still runs a budget deficit, suggesting to
> some bureaucrats that the price needs to be raised again!
>
> Should the rest of us care? Should we, as a nation of
> immigrants, subsidize the cost of processing applications
> in an economic recession to motivate more qualified but
> resource-strapped residents to apply? Would our democracy
> benefit if more legal residents joined the ranks of voters,
> became fully engaged in community life, & put down stronger
> roots? How can we quantify these benefits to justify a price
> below cost? Or should we leave the price as is but market
> the benefits of citizenship more effectively?
>
> Or should we raise the price of US citizenship again?
> Imagine that every naturalized citizen was asked what
> value he or she would place on having become a US citizen.
> In most cases, the estimates of net present value would
> surely exceed $675. Why not treat admission to US citizen-
> ship as Harvard treats its applicants: charge $30,000
> tuition but refund, on average, 50 percent of tuition
> revenues in scholarships to those who need help? Perhaps
> allow an income tax deduction of value-based citizenship
> fees over five years?
>
> What do you think? How would you advise the US government
> to set a price for citizenship?
> .
> .
> --
We don't need anymore immigrants. Deport all illegal aliens and then
we can start a debate. Limit legal immigration to persons with college
degrees in the sciences and engineering. Cap it at 100 thousand per
year.
climber