Elon Musk is clashing with Trump's MAGA base over skilled immigration. Here's what economics gurus are saying.

• Elon Musk and Vivek Ramaswamy are butting heads with Donald Trump's base over the H-1B visa program.
• The tech elite see foreign talent as vital while "America First" voters want less immigration.
• Here's what Paul Krugman, Robert Reich, and other economics gurus are saying about the debate.

Elon Musk and Vivek Ramaswamy have clashed with Donald Trump's MAGA base on the subject of legal immigration, specifically the H-1B visa program for skilled workers.

The pair said on X that the US must import foreign talent to remain globally competitive. In a now-deleted post, Musk seemed to agree there aren't enough smart Americans to fill the most demanding tech jobs. In a separate post, Ramaswamy blamed the shortfall on US culture that has "venerated mediocrity over excellence."

In contrast, many of Trump's followers believe employers are importing cheap foreign labor, driving down wages and robbing locals of jobs. Under the banner of "America First," they want to radically reduce legal immigration in favor of investing in Americans so they can secure well-paid jobs in areas such as technology and engineering.

Economics gurus are divided on the topic. Here's a roundup of their views:

1. Paul Krugman, a Nobel Memorial Prize laureate and economics professor at CUNY's Graduate Center, in a Substack post

1. "For the most part, immigrants are complements, not substitutes, for native-born workers."

   "So original MAGA is wrong to claim that immigration is impoverishing 'real Americans' in general. But tech-bro MAGA is wrong as well as offensive in saying that we need foreign workers because Americans are stupid or lazy. Furthermore, the availability of less expensive foreign tech workers does reduce the incentive of tech firms to train a home-grown work force and undermines the political incentive to improve our education system.

   I'd still argue that something like H-1B makes America richer and stronger, especially given the spillovers generated by a successful technology sector. But Muskaswamy and friends aren't helping their case by insulting Americans' culture and intelligence."

   2. Robert Reich, a former US labor secretary and member of President Bill Clinton's National Economic Council, in a Substack post

   "Allowing many more skilled workers into the United States reduces any incentives on American business to invest in the American workforce.

   Allowing many more skilled workers into the US also reduces the bargaining power of skilled workers already in America — and thereby reduces any incentive operating on other Americans to gain the skills for such jobs.

   And opening America to skilled workers also reduces the incentive on foreign nations to educate and nurture their own skilled workforces. Why should they, when their own skilled workers can easily migrate to America?

   The major beneficiaries in the US of opening the nation to skilled workers from abroad are CEOs and venture capitalists like Musk and [David Sacks], whose profits and wealth would be even higher if they could siphon off cheaper skilled workers from abroad."

   3. Florian Ederer, a professor of markets, public policy, and law at Boston University, in an X post.

   "How dare the US not kneecap itself and attract the best and brightest talent from around the world!" Ederer replied to a post that sounded dubious about potentially expanding the H-1B visa program and ending caps on green cards by country.

   In response to a comment warning more immigration could intensify competition for jobs, Ederer said: "I'm a former H1B and now a US citizen. I'm an economics professor, a profession with a particularly large share of foreign workers. So this is literally what happens in my job."

   4. Jeff Eisenach, a senior fellow at the American Enterprise Institute, in an X post

   "Legal immigration has contributed to American wealth as well as to our culture. For example, Latino families are culturally conservative, educate their kids, create new businesses -- and make us ALL richer."

   "The H1B program enhances America's workforce by bringing in – and generally keeping – very talented people. And, these are not people who are competing for middle class jobs."

   In another post, Eisenach said that if the H-1B program is being abused to bring in non-technical workers like Pickleball instructors, that's "obviously a problem that needs to be addressed."