Thanks to the Employ American Workers Act (EAWA), which was folded into the stimulus bill, it's become harder for companies getting government support to hire skilled immigrants with H-1B visas -- they'll have to show they haven't laid off or plan to lay off an American from a similar occupation.

Supporters say the law will help U.S.-born workers and stimulate our economy, but this is just wrong. The economy is not of fixed size, in which more foreign-born workers necessarily mean fewer U.S. workers. Productive foreign-born workers can help create more jobs here. Keeping them out damages us.

Start with the damage to companies that have received money from the Troubled Asset Relief Program (TARP). Over 400 firms now face a sharply curtailed talent pool, precisely when they need visionary talent to rebuild amidst the world's most severe economic crisis in decades. Without the best talent, ultimately they'll create fewer jobs.

There is also indirect, unforeseen damage that's beginning to appear in higher education. In 2007, the U.S. exported $15.7 billion in educational services and, consistent with our strong comparative advantage in education, ran a trade surplus of $11.2 billion. America has built the world's most dynamic university system largely by welcoming foreign scholars and students. This year at our own Tuck School of Business in Hanover, N.H., 31% of tenured and tenure-track professors and over 35% of MBA candidates are foreign born.

That dynamism is now in question. Here at Tuck -- and at many fellow business schools as well -- several foreign-born students had their job offers rescinded in response to EAWA. If foreign-born students cannot legally work here after earning their degrees, fewer will enroll.