The United States has at least one "product" that the rest of the world desires. It is called a "U.S passport". I propose that we auction off 2 million of these passports. I predict that each of these passports would sell for $250,000 and this would raise $500 billion in new revenue for our hungry Treasury Department. This would help to reduce our federal deficit. There are 300 million people in the U.S. My proposal only increases the nation's population by roughly 1%. If your weight increases by 1%, you are not bloated and in this case there are large potential benefits from opening up our doors to those who want to join us.
Let's focus on how this policy will affect California real estate. This policy would attract successful people to move to the United States and I predict that at least 15% of them would move to California. As 300,000 households move to California, housing demand for "nice homes" would rise. Roughly 500,000 homes are bought in California each year. Given limited supply, home prices would stop falling and foreclosure rates would decline and housing equity would start to rise again.
The new immigrants would likely be high human capital individuals and this will boost the knowledge base for the state and help raise firm production. If high tech firms buy inputs and use services from "low tech" firms, then such "low tech" firms and their workers will gain from the growth of "high tech". In a sense, this is "trickle down" economics at work.