A loophole in immigration law is costing thousands of American jobs
latimes.com
latimes.com
But it would. Every case I've encountered where there is a skepticism of Indian workers is due to horrific experiences with such hires. I haven't seen the same applied to, say, Russian engineers.
There may be a another reason, like just the sheer population and widespread English usage, but the result is that Indians suffer an unfair bias that other groups don't have. Things like MS shipping a major product made in IDC, with broken English in the dialogs. Or so many outsourced support and development failures. Perhaps it's because bad experiences are noticed because there was an interaction. But good experiences, say excellent code written by anonymous Google engineers, doesn't have any particular nationality associated with it (except American)? So if all tech support and dev was outsourced to Russia, then Russia would have a disproportionate bad rep?
It's not fair (or perhaps not even fixable in a fair way), but if more interactions were positive, then there'd be less resistance.
I feel bad for having an internal reaction when I start dealing with an Indian, but I try to balance that out by making an extra effort to be sure I'm concentrating on the work. And I know there's tons of far-more-talented-than-me Indians. It terrifies me that this bias might be mathematically incorrect, in addition to being individually unfair.
Having said above I agree that the H1 visa IS being abused but the main issue is L1, not H1. there was about 20% abuse a few years ago and there was a huge crackdown by the USCIS and DoL on those doing that.
[1] http://www.immihelp.com/l1-visa/l1-visa-h1b-visa-comparison.... See the "Prevailing wage", "DoL approval", "Education requirement"
Can you imagine someone making (with a straight face) the argument that people from Detroit shouldn't be allowed to move to San Francisco to take a better job, because they'll steal jobs from and drive down the wages of SF natives? What's the difference?
Democracy is a kind of majority rule, isn't it?
If the majority votes to take 50% of my income in taxes, and uses the money to start wars around the world, I stumble when it comes to saying I'm morally obligated to pay those taxes.
Thoughts?
2) Immigrant workers are paying their taxes as much as you do (or more).
Considering the above and applying your logic, government should remove all restrictions (except security consideration) on bringing foreign workers into the US.
Valentino protects you, he's been looking out for you. Like when they tried to build a K-Mart in the neighborhood, and the developer had an unfortunate accident.
But here's the thing, Valentino's consigliere has convinced him to let in a new grocer in the neighborhood, and business hasn't been that good since.
Is it ethical for you to go see Valentino and complain that, since you've been paying him off for years, he should kick that new grocer out of the neighborhood?
What matters in this example is that two wrongs don't make a right.
If it's morally wrong to prevent immigrants from finding jobs in the US, then the fact that the parent has paid taxes is irrelevant. Using it to justify preventing immigrants from getting jobs in the country is begging the question.
I think that some countries, being extremely successful, can both help guide other countries into successful strategies (there are hundreds of large scale economic experiments going on at all times by the nature of different states), and help bolster those countries that have followed strategies that were less optimal (global aid).
I do not believe this gives a blank check to some countries to ignore the less fortunate portions of the world, there is an obligation, enforced up by the reality of the threats these places produce, to attempt to help the world as a whole advance, which it largely has done over hundreds of years. This is analogous to the differences in the populace within a country, but I think it's easier for people to see it on a world stage, even if they don't equate it to income disparity within a country.
The global system we've been using, with countries largely distinct, has yielded great gains. Altering major aspects of that system should not be taken lightly, as unforeseen implications could cause great problems (would the world be served better overall if free movement between these countries caused a depression within America, and that happened to trigger a global depression?). That's not to say it shouldn't be tried. Indeed, as others here have posted, is seems the EU is trying this very idea out, to some extent.
I completely agree with this. It's my take on the evidence that immigrants tend to have little effect on wages of native workers on average (except possibly at the bottom of the education distribution), and huge benefits for the immigrants themselves. (As you say, economics is not zero-sum). You just hear more from the small concentrated group of people who are displaced than you do from the large diffuse group who have new customers.
In the other direction, if "brain drain" from poor countries to rich countries was keeping the former poor, then restrictions might be justified to keep skilled workers from leaving. But no one seems to really believe this: restrictions are almost always on immigration, not on emigration.
> Altering major aspects of that system should not be taken lightly
Absolutely. I don't advocate totally open borders tomorrow, but it seems to me that they could be much more open than they currently are without any drastic consequences.
Some how i doubt so, it's not a question of job displacement it's a question of competitiveness. An Indian developer will cost a fraction of what a US born developer costs even if they are working in the states. And why is that? Simply because it cost about a fraction of what it cost to bring you from infancy to your current stats to do the same to him. Cost of living in India is cheaper, education is cheaper, and well life overall is cheaper.
You have debts, whether they are direct debts say for example student loans or indirect debts to say your parents who brought you up and count on your direct and indirect support in the future.
Flooding the market with skilled workers who are willing to get paid much less tends to break it. No company in the world would say no dude keep the 120K a year + equity if you only ask for 35.
Highly skilled worker visas are there for a reason, they allow very specific people to migrate to the country to work.
The UK for example limits even inter-company transfer to salaries above 50K GPB(77K $), and limits open tier 2 general visas to salaries of 153K GBP a year and above.
There are exceptions for other classes of T2 such as elderly care workers etc.
But for the most part if a company wants to bring a highly skilled employee into the UK they have to either pay them a metric ton of money, or they have to be employed by the company and still get paid a fair wage (slightly less fair if you live in London, but even for London 50K isn't that bad for 1-4 years of experience jobs).
Also last time I've checked Detroit was still a part of the US, India currently isn't. Countries still take care firstly of their own citizens, unless you are advocating here for a complete globalization and abolition of all borders this is nothing more than a demagogic straw-man argument.
That's a bit of a leap.
"Can you imagine someone making (with a straight face) the argument that people from Detroit shouldn't be allowed to move to San Francisco to take a better job, because they'll steal jobs from and drive down the wages of SF natives? What's the difference?"
Probably the fact that Michigan and California are 2 states within the US and whilst America is protectionist (as are most sovereign nations) against other countries when it comes to labour (with few exceptions like the EU), there are laws that prevent this kind of protectionism between states.
And yet, until just 20 years ago, you couldn't move from Germany to France for similar reasons. You had to get a work visa. Just because they weren't part of the same union, even though they are neighbouring countries and you could literally commute from Germany to work in France (or vice-versa) every day if you wanted to.
If someone lives in India, they are likely to have a standard of living below what would be considered poverty level in the United States. If you actively prevent them from taking a job that would take them out of poverty, how else would you describe that?
> Michigan and California are 2 states within the US
This is my point. Why is it morally okay to exclude people from India, but not people from Detroit?
And thus placing an American in poverty in the process. You've displaced their job and gave it to an Indian who is paid less (so the article suggests). Less federal income tax, less state tax and it's not unreasonable to assume that a portion of the paycheck will be returned to India.
This is why we have foreign aid budgets and charities. People do care and want to give, but what you're suggesting is not the way to go about it.
> This is my point. Why is it morally okay to exclude people from India, but not people from Detroit?
Morally it's not OK. Agreed. Even economically it's possible, but not without severely driving down US living standards. Politically though, it's a disaster.
Look at it this way. Indians are much richer than sub-Saharan Africans. But go over there and tell them that they have a moral obligation to allow African immigration. People will laugh at you, if you're lucky.
That wouldn't make them right. Humans are humans, doesn't matter what country they were born in. Just because people have been doing it since forever doesn't mean it makes any sense.
Doesn't matter to who?... The guy in the US? The guy from India that wants to replace the guy in the US? The guy in Africa that wants to replace the guy in India?
And how does the guy in India feel about the guy in Africa taking his job or lowering his salary, does his stand still stand - or was it one-sided all from the start?
Most humans do see nationality, race, and other attributes of the group - even to the extent of killing someone over it.
There is a lot more to a person than that single second you are born in... Like the other 1-100 years of your life, most of which you spend in that country and become part of it.
Because that is the difference. If you arguing that national borders are immoral... well, I might agree in theory. But many more things besides immigration change at that point, and we are not there right now.
According to the article, 50-60 year olds IT specialist who "install, maintain and manage Edison's computer hardware and software" are making $80-$160k / year ($120k on average).
Those salaries seem to be 2-3x market rate for such work. Even the salaries paid to the new, outsorced people ($65-$70 average (sic)) are on the high side for someone who installs software.
The article claims this is a "loophole" because H1B is supposed to replace "highly skilled, hard to replace workers" ergo those $120k/year are not highly skilled, hard to replace, which begs the question: how come are they all making $100-$190k/year (https://s3.amazonaws.com/s3.documentcloud.org/documents/1671...)?
To put it differently, think of a system that routes phone calls. Twilio and Plivo are great examples of such systems and are very reasonably priced. BUT you cannot route 911 calls through them[1] because they do not offer E911 support out of the box. Doing so would expose them to liability should their systems fail. Your home landline is required to have this and you pay quite a bit more. (Though if you ask me, WAY too much for what it really is.)
Bottom line, critical/emergency systems cost more to run and maintain, with people bearing the responsibility costing more.
[1]https://www.twilio.com/help/faq/voice/what-kind-of-phone-cal...
H1-Bs should be converted into greencards after 3 years.
Also, anyone graduating from an America college should get a greencard.
No, please, no. We know where that will lead. The so-called "Masters Cap" exists, that's another 20K H1B visa on top of the 65K quota for those graduating with a Masters degree from an American institution. Who could have guessed that that would lead to a cancer of taught masters degrees?
These degrees are cheap to put on (just define a few advanced undergrad classes as required for the Masters degree) and come at no extra cost for the university (the class needs to be taught anyway). Boof, it's free money and a guaranteed stream of desperate foreigners. These "let-me-stay-in-the-US courses" need to be killed dead, they aren't even education.
Meanwhile any foreigner with an actual degree still gets to jump through extraordinary hoops for the green card.
I think a new class of non-employer-dependent work visa for foreign graduates of US colleges and universities would be a great idea, if coupled with H1-B reform.
For example, there should be reform to wage calculations (e.g., forcing companies to use median or average calculations of the wage bands), a hard percentage cap on the number of H1-B employees and contractors a company can employ (in other words, getting rid of "H-1B dependent companies" under 20 CFR 655.736(a)), and tighter evidentiary requirements under 8 USC 1182(G)(i) regarding good-faith efforts to recruit US workers for a position.
Really, though, some of the current legislative brakes should be sufficient to curb some of these abuses. For example, 8 USC 1182(n)(1)(E) seems, prima facie, to be sufficient to deny visas to an H1-B-dependent company which is engaged in displacing US workers -- pretty much the textbook definition of Tata. The fact that it isn't being enforced indicates that there are regulatory problems as well as legislative.
They still give the sugar cane industry in Florida large subsidies (even though most sugar is from beets now) because sugar is apparently of such strategic importance to the US. Is one specific kind of sugar of more or less importance than a mass of domestic technical ability?
I'm waiting for the day in which societies realize that the importation of low cost labor produces short term benefits... and then much larger problems which last for a very long time.
(Edit) The problem (mostly) goes away if immigrants come to be permanent residents and have a stake in the system. I'm very much in favor of immigration/citizenship to the US of talented individuals. Nor are my points on strategic importance a long winded way of saying "they took er jurbs!".
My GF's dad teach meteorology and welding in Iceland (In Europe and Asia you'll still find that in a Uni), half of his students end up working these days in the states for companies like Caterpillar and the bigger ship yards, their starting salaries are between 80 and 120K and they are crying each year and trying to lobby for grants to get US students into these fields. Oil, Mining, and large scale construction and manufacturing which once were fields dominated by US companies are dying to staff various technical and engineering positions however with the current theme in US higher education they can only get workers these days from E. Europe, Russia and China for the most part.
Pushing some graduates out of software engineering and similar studies might actually be good for the US economy in the long run.
However doing it trough migrant visa's which take in people who are paid near to nothing and can't negotiate better terms since dismissal is equivalent to deportation is really not the way to go.
I would much rather see a company that enjoys monopolistic protection from the government be barred from pulling such stunts. Edison can be viewed as a quasi government entity and absolutely benefits from their monopolistic position. In return, their duty should be to watch out for the greater good of the community that funds it, including employment for individuals from those communities.
If they were subjected to true open market competition, my opinion of this would be vastly different... but they are not.
There is an even bigger loophole in immigration law, which is that the government turns a blind eye to illegal immigration from Mexico. However saying so is considered "racist" since anti-racism is constructed to forbid comments about certain groups, and allow them about others.
Ironically, driving down the cost of labor is great for rich people who are generally conservative and oppose illegal immigration.
When you separate these things, it is consistent for an orthodox economist to promote more immigration from Mexico (not sure how a person could ever advocate for illegal immigration) while being a social liberal. In classical economics, immigrations is (1) good for the immigrant (2) bad for the local workers they are competing with and (3) good for the employers. According to classical economics, the net benefit is positive, and so (with appropriate taxation policy) the overall result is good for the nation.
Personally I am orthodox when it comes to economics. The only thing I don't understand is that the liberals apply orthodox economic arguments when it comes to Mexican immigrants, but refuse to apply these same arguments when it comes to H-1B visas.
To me it is clear that their real agenda is to promote non-White immigration, but to keep sentiment against Indian and Chinese immigrants as a safe way to express "racist" thoughts.
1) H1Bs are both good and evil. We need reform.
2) US Government sucks. I'm skilled and cannot enter this country. Increase the quota.
3) Immigrants hurt local labor so much I can't stand it. Just throw them out.
Theoretically you could hire anyone. You just couldn't expect them to show up to the office unless the government lets them into the country. If the company doesn't like this, they can let the person work in their own country instead of coming to America, but then that's not an American job anymore.
Does that clear things up?
What I'm pointing out is that middle class American citizens are quite in favor of allowing immigration, doing as it does not affect them negatively, economically speaking, once it does, the middle class retrenches. I think this explains why poor American citizens tend to oppose amnesty programs while the middle class typically support it. Typical, I support causes, so long as it does not affect me negatively.
There are a few possible solutions to this, such as:
- Make it so once you have an h1b, you have the right to stay in the US for at least 1 year, whether your job is terminated, and make it easy for another employer to take over your h1b. This gives immigrants leverage over a bad employer, in the form of being able to go somewhere that will pay them more.
- Make h1bs go to the highest bidders: each company says what salary they're going to give the h1b holder, and those companies paying the most get the visas.
I think the middle class and upper classes say they believe in principles, except when believing those principles will affect their way of life.
For example, in SF, kids from areas with historically low scholastic performance are bused into schools with better performance, the hope is that aptitude will 'rub off'. Upper class SFers, are for this, it's socially responsible, but they put their own kids in private schools --the middle class immigrants I speak to, wish they could send their children to schools in their neighborhood, rather than ending up in a random school where performance is suspect.
There is something deeply wrong with that attitude.
2) Even if most countries discriminate foreign workers, that does not make it right.
3) Discrimination (if it is not based on skills) is making economy less efficient.