Friday, February 8, 2013

Senators Marco Rubio, Orrin Hatch, Amy Klobuchar hate America

I posted a snarky blog on H1B Visas last year, but it appears that based on current events, it is time to post again.  I doubt I will say anything that hasn’t been said before, but this needs to be said, over and over. 

H1Bs are a tool of “The Man” to keep America’s record breaking income disparity on track for even bigger numbers.   Yeah!  Maybe we can break a new record next year!

Proponents of the H1B, or increasing the allowed number of them, will tell you heartwarming patriotic tales of the U.S. needing these so we can keep companies on shore, in business, and competing against the world.  Capitalism is the best thing ever, but when you run out of local resources, you have to import them to keep your business from failing.  It’s just supply and demand. We have demand. If these companies can’t get smart employees, they will go out of business and then America loses.  Limit the H1Bs and Microsoft will have to fold up shop, then the Seattle area dies with it, then Silicon Valley and LA aren’t far behind.  Plus, hey, we are forced to pay all these folks prevailing wage.

All of this is horseshit. 

(Sorry, parents who are reading my blog to your kids before bed.  I’ll try not to use that language again…)

Why is it horseshit?  (Okay. I’m not trying very hard.)

Here’s why:

The H1B is simply access to a pool of lesser-paid employees.  In my previous post, I referred to them as indentured servants.  (Work at Microsoft for a few months, and you will see it. Comments welcome.)

Further, when the onshore talent is forced to compete against the indentured servants, they have to put in the same kind of hours the indentured do.  When it comes to supply and demand, the prevailing wage rule doesn’t let the market come into play.  The extra supply of labor hours drives down demand.  It’s just that simple.

H1Bs are anti-American and chip away at the American Dream every day.  One could make an argument that the visa is just opening a bigger market, thus very capitalist. But seriously, I kind of want America to be around and to have jobs when my kid grows up. 

Here’s how the H1Bs are ruining America.  If we stop or cut the H1B numbers, the demand for smart people goes up.  With demand up, wages go up.  Wages don’t just go up for the top tier professionals; they go up for every other tier as well.  Crap, there goes our chance at another Guinness Book Income Disparity Record.  If the wages go up, the jobs get much more attractive to America’s youth.  If demand for those jobs goes up, we need more training institutes for whatever technical jobs are in more demand.  Kids will go to college and get smart if there is a path to riches.  Right now, average wages for many of these jobs are comfortably nice, but they don’t scream, “Learn me, you can vacation in Park City every year and drive an Escalade!”

The H1B keeps kids from seeing any American Dream, so the ones lucky enough to afford college just get yet another Art History Degree and fill out that McDonald’s job application.

I have met a few folks who have left tech for trade jobs, because the pay is similar and the stress is lower.

One might make a claim that there is a short term need for the smart folk, as American kids aren’t up to speed yet.  I concede the possibility, but how do we fix the cycle?  On our current path, it seems that we don’t, we just continue to import cheap labor.

The market only works for us if you let it.

If that were the end of it, one might be able to let go.  As it turns out, and I won’t pretend to know everything about these companies, many of the big consumers of H1Bs are foreign owned companies who rarely hire Americans and specialize in filling headcount for companies who can’t get H1Bs or have more than their fair share. These companies are funneling their revenue right out of America.  These aren’t even American companies in need of talent, hoping they can compete!

Don’t get me wrong, I don’t hate foreigners; I worked with some great ones at MS and many great ones at T-Mobile.  What I want is to protect America, its future, and its market for high paying jobs.  Keeping wages low in this manner hurts America.  We need to fix this for our children.

H1B visas are nothing more than a way to keep money out of the hands of workers and in the hands of execs and larger shareholders.

Taking a look at some of the top H1B sponsors, I can’t help but notice three distinct categories.  We have offshore consultancies, household name tech companies, and banks/wall street firms. None of these companies are lacking in cash to bump up the pay of their employees or to fund training and education for the lesser employees with potential.  This is pure greed.  

Here a look at H1B data for 2001 – 2012

Household Names

Employer

Denied

Requested

Microsoft Corporation

206

38001

IBM Corporation

416

25067

Oracle Corporation

177

12587

Intel Corporation

86

11686

Qualcomm Inc

79

8492

Accenture Ltd

57

6637

Cisco Systems, Inc

125

6273

Google Inc

30

6241

Hewlett-Packard Company

98

5907

CVS Rx Services, Inc. dba CVS Pharmacy

47

5804

Rite Aid Corporation

89

5385

 

Wall Street

Employer

Denied

Requested

CitiGroup

187

8147

JPMorgan Chase & Co

75

6564

Goldman, Sachs & CO

51

6527

Bank of America

79

4304

Merrill Lynch & Co., Inc

65

4140

Credit Suisse First Boston

55

3760

UBS AG

61

3659

Capital One Financial Corp

65

3648

 

Offshore Consultancies

Employer

Denied

Requested

Satyam Computer Services, Ltd

163

29824

Tata Consultancy Services

155

17996

Infosys Limited

222

16013

Larsen & Toubro Infotech Limited

83

14105

Wipro Limited

67

13420

Infosys Technologies Limited

55

10139

Cognizant Technology Solutions

368

9375

Patni Americas, Inc

80

8146

 

 

Well, at least Steve Ballmer gets to keep his fleet of Ferraris.

…And Larry Ellison gets to keep tropical islands.

…and our children will get to keep…what?

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