(the link is http://www.businessweek.com/bwdaily/dnflash/content/jun2009/...)
It's interesting that our president, who supports an increase in H1Bs for the high tech industry, would take this position where it comes to nursing.
It's made me very cynical. Ultimately, this all comes down to power.
Nurses have a shared experience (a specific education requirement), as well as a specific licensing procedure that can be used as a gateway. They also don't compete with each other the way programmers do (yes, programmers share knowledge, but a nurse a kaiser clearly isn't competing with a nurse at beth israel the way a programmer at google competes with one at microsoft).
Nurses also have a very, very powerful union, and society pretty much backs them up, as the profession is held in high esteem. If a hospital tried to bring in foreign nurses, engage in "knowledge transfer", and then fire the older americans with higher salaries, the union would vote to strike, the hospital would cease to operate, the public would back the nurses, and management would completely capitulate.
I don't even know if Obama sees the potential inconsistency. That's what power does. People often don't see themselves as "capitulating" to power. Instead, they respect power, and negotiate accordingly.
I used to be much more in favor of "free markets". I still am in theory - what I say is "I'm all in favor of free markets - if you find one, please let me know, I'd love to participate". But at this point in my live, I've concluded that working in a "free market" is like wandering around the wild west without a gun. Sure, it'd be nice if we all put down our arms, but if you're the only one who does this, you're just a chump. To me, that's what free markets are - a chump's game.
I applaud Prof Matloff for fighting this. People who have read my posts probably know that I'm in favor of a small number of visas for very talented people (in any field), but I think we're unintentionally eradicating our home-grown STEM (science technology engineering mathematics) workforce. The last line is especially chilling - parents in Silicon Valley know what's going on, and they no longer encourage their children to pursue the field. I actually think that this, in the long run, will severely hurt the US economy, and we're doing it to ourselves. Yes, allow talented workers to come here. No, don't issue so many visas that young Americans are rightly deterred from entering the field.