Trump stalls economic engine

This appeared on Bloomberg View:

In President Donald Trump’s latest effort to wall the U.S. off from the rest of the world, his administration has ditched a plan to make it easier for foreign entrepreneurs to come and work in America. The decision may play well with the president’s nationalist base, but it will not help the U.S. economy.

The administration has delayed (and will probably kill) the International Entrepreneur Rule, which was designed to provide a special “startup visa” for entrepreneurs who attract funding for businesses in the U.S. The rule was intended to benefit entrepreneurs whose ideas had attracted at least sixfigure funding from either private investors or a government entity. They were to be selected on a case-by-case basis, after demonstrating that they would provide a “significant public benefit” through rapid growth and job creation.

The goal of the rule, which was finalized under president Barack Obama and scheduled to take effect this week, was straightforward: “To increase and enhance entrepreneurship, innovation and job creation in the United States.”

It’s unclear what the Trump administration believes it will achieve by discarding the plan. What’s more, it couldn’t come at a worse time. The U.S. economy is far less dynamic than it needs to be, with startups accounting for a declining share of both companies and employment. The Trump administration’s reflexive hostility to all things foreign — including good ideas venture capitalists wish to back — is counterproductive.