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Foreign imported workers have been used by American corporations under the false allegation of a worker shortage. The real reason for using foreign workers is that they are willing to work for lower wages.
As far back as 2002, Nobel economics laureate Milton Friedman said that the 1990 H-1B visa program is a government subsidy because it allows employers access to imported highly skilled labor at below-market wages. The excuse is that there are not enough qualified American workers but the reality is that since 1960, 30 million Americans have graduated with bachelor's degrees and advanced degrees, who could work as scientists, engineers, computer programmers and mathematicians.
During that time, there were only 8 million high tech positions that needed that level of training. So Americans were competing with foreign technical workers for the same positions. Between 1975 and 2005, more than 25 million foreign workers were approved in just five highly skilled visa programs. Fast forward to 2009 and the growing number of unemployed in the United States (U.S.)
According to a review of visa applications published by the Associated Press (AP) on February 1, 2009, a good example is the banking industry which is being bailed out with billions of U.S. taxpayer dollars. Over the last six years, dozens of banks now receiving bailout funds have requested visas for more than 21,800 foreign workers as senior vice presidents, corporate lawyers, junior investment analysts and human resources specialists. During a time when huge numbers of bank employees were being laid off, the number of visas sought by a dozen banks actually increased from 3,258 in 2007 to 4,163 in 2008.
Lobbyists made sure that those hiring foreign workers helped to get employer-friendly amendments to H-1B. Now convicted Jack Abramoff, lobbyist for Microsoft, enabled that corporation and other companies to benefits with changes to the law to enable them to import more workers.
Another example is Pfizer which is bringing in foreign workers from India, supposedly to take jobs that could not be filled by Americans. In the meantime, it is firing American works. The reason is that the difference in pay is between $65 an hour for an American technical worker and $35 for a foreign imported worker.
On January 29, 2009, Senator Charles Grassley (R-Iowa) sent a letter to Microsoft saying that "The company has a moral obligation to protect these American workers by putting them first during these difficult economic times." The question remains whether the 111th Congress will institute a program of "Hire Americans First" or will it succumb to the demands of industry and continue to import foreigners for jobs that can be filled by U.S. workers.
Comments
Foreign workers also pay taxes in US not in their home country!
Excellent, well written article!!
Thanks for getting this information out there.
Excellent, well written article!!
Thanks for getting this information out there.
Great article:
Here's some disturbing info:
BLS Employment Growth over NonInstCiv Population Growth by Decade:
1950s
Population Growth = 11,516,000
Employment Growth = 7,215,000 (63%)
1960s
Population Growth = 19,449,000
Employment Growth = 13,862,000 (71%)
1970s
Population Growth = 30,811,000
Employment Growth = 21,224,000 (69%)
1980s
Population Growth = 20,865,000
Employment Growth = 17,685,000 (85%)
1990s
Population Growth = 21,667,000
Employment Growth = 16,998,000 (78%)
2000s (June 2008)
Population Growth = 24,795,000
Employment Growth = 11,953,000 (48%)
They may pay taxes but they don't contribute to social security. A program that depends on the current working class.
Ms. Gore, thank you for telling the truth
Too bad Grassley doesn't have the same concern for he US-flag Merchant Marine, which he has been trying to drive to extinction since 1992.
I find his comments disingenuous.
Kidd: can you explain more about the US-flag Merchant Marine?
Citizen: I hope you will share this article with others. Many people have no idea of the impact importing foreign workers for jobs that Americans can fill.
Peter: That is an important point. The statistics about the U.S. population show that people are living longer than ever. Many of them live on Social Security and anyone not paying into that present problems in being able to continue that funding.
Weaver: Thanks for the statistics. I will add them to my research files. Information such as that is always appreciated. I hope readers accessing my article will not have any doubts about how foreign imported workers are effectin employment in the U.S.
Coolmower: I hope you will share this article with your friends and family. Americans need a wake up call about what the employment of foreign imported workers is doing to the lives of American workers.
Yes: It is not a matter of paying taxes. It is the impact of having workers who have equal education and ability to fill these jobs not being hired because foreign imported workers receive lower payment. Some economic investigators believe we will reach 10% unemployment before this economic debacle is over.
Finally -- someone tells it like it is. The only reason that corporations are letting Americans go and retaining or hiring foreign workers is that they can get a cheap and pliant labor force.
Further, many of these H1Bs are hired through outsourcing firms, further allowing these corporations to deny that they are letting Americans go to retain foreign employees -- and they can say this because they have thousands of outsourced contractors working for them -- which allows these firms to not count them as foreign laborers.
This visa program needs to be cancelled, before it completely destroys the middle class potential for earning a decent living.
My eyes are wide open. I spread the word whenever I can. For too long Outsourcing lobbyists have been in controll with the lie that there are not enough skilled workers in the U.S.
It's time for highly skilled U.S. workers to rise up and protest this form of blatant discrimination.
END H-1B NOW!
I have a phd in wildlife genetics, and make $40k or $20 per hour after graduation, for a job that had quite a few applicants. What technical jobs are they referring to where americans are making $125k? Are there really unemployed americans who wouldn't accept less than $65/hr?
Peter Kaloudis, please get your facts right..
A foreign worker (legal) pays the same tax as a US citizen, social security and medicare included!
But the worker is not entitled for benefits until he works for 40 quarters, 10 years. The visas last for 6 years!
Martha, agreed! But it makes sense to go after the employers not the individual.
There are many US graduated foreign nationals why shouldn't they work for US corporations? Just visit any top school engineering or business its dominated by Asians and are being edutated at US tax payer expense.
Innovation 101: Innovation comes from diversity!
FedupwithH1B: We do need new legislation and the place to start is with the Congressperson from your district. Send him/her an e-mail or letter (often phone calls are recorded as pro or con numbers, not actual complaints.) Explain your concern and ask what is being cone to correct the situation. Let me know if you receive a response.
Yes: Why are we educating foreign national students at U.S. Tax payers expense? I am told that at the University of California a small percentage of students are accepted each year. I am wondering if this includes foreign nationals? Or are U.S. citizens given priority?
Tim: One problem middle class Americans have is that those acquiring degrees owe tens or thousands of dollars in loans. Advance degrees can bring up the student loan to over $100,000. Right now, with millions unemployed there must be many workers that would accept $35,000. But that is the reason that the families in the U.S. need two paychecks in order to survive if they have children. There is no shortage of American workers looking for employment (we all probably know quite a few)who are willing to do almost anything to bring in a paycheck.
Coolmower: Let your Congressperson hear from you. There is an election coming up in 2010 and that person may be running for office and looking for something important to sponsor in the campaign. Make your voice heard! Nice, polite e-mails or letters are read carefully. Who knows, you might get your representative intereted in making changes.
To all who are posting comments. I really appreciate hearing from all of you. If by some chance I miss your post and don't reply, please let me know. Meanwhile, if you feel that my articles are worthwhile, please let others know so all the research I do in trying to present the facts perhaps can make a difference.
Only a small percentage of foreign students are admitted each year but for some reason all those students end up in science/math/engineering...hmm, it can't be a coincidence! Not many high school students want to end up as 'geeks' or 'nerds' and choose a non-cool major!
No foreign students are not given a priority, they have to score well in SAT/GRE/GMAT and pass at least 2 English exams even to be considered for admission.
Now why are they being admitted, universities thrive on research and research needs students. United States has the BEST schools in the world! A true student would like to compete and work with the best. (It’s not a recent phenomena, any civilization with the best schools and scholars attracts the best!)
As I stated earlier, innovation & new ideas come thru diversity and not monotonous thinking!
Curiously, why are ball players imported from Latin America, is there a shortage of baseball players in America? Anyone can throw a ball or hit a ball! Aren't they stealing an opportunity? 25-30% of baseball players are immigrants (on a visa sometime) only 1-5% of university students are foreign!
It started out at one time that the latin player were cheap, now they are taking jobs from americans of all ethnicticities and taking their multi million dollar contracts home with them. MLB needs to wake up and get with it after all this America's Past time.
And we wonder why we are in an Economic mess. All of these companies want to make money in America but do not want to hire Americans. All of those that want an increase in the H1b visa cap (like Microsoft) are those that are laying off American workers.
Senator Judd Gregg on H1-B Visas
http www youtube com/watch?v=GvoHBqtMR4k
Is President Obama Abandoning The Middle Class?
I would like to see a story on plight of an American worker who lost the job. They are being replaced by H1 holders regularly for more then 10 years but no one cares for them.
It is also truth that in most of tecchnical programs more then 50% admitted are foreigners. Why??
Corporations are ruining economy slowly but surely. After outsourcing millions of IT jobs per year, there is still shortage of engineers in USA. Is it not a joke.
"Yes: Why are we educating foreign national students at U.S. Tax payers expense? I am told that at the University of California a small percentage of students are accepted each year. I am wondering if this includes foreign nationals? Or are U.S. citizens given priority?"
The most qualified with the highest grades and GRE/SAT Scores are given admission.
"Yes: Why are we educating foreign national students at U.S. Tax payers expense? I am told that at the University of California a small percentage of students are accepted each year. I am wondering if this includes foreign nationals? Or are U.S. citizens given priority?"
We are not educating foreigners at US taxpayer expense. They pay the full cost of education at a rate four times higher than in-state students. You want to educate American students? Why dont you write to the California governor and plead with him not to cut the education budget of the University of California system by 20%. In 1983, 80% of the budget of the Purdue engineering school came from the state of Indiana. Today after two decades of massive state budget cuts only 30% of the budget comes from public sources. Once the private sector funds public schools, they want a say. University of California, Santa Barbara engineering school is a state school in name only..80% of the budget comes from private sources including the Japanese corporations Mitsubishi. Why is the government not funding pubic institutions..because the locals vote themselves tax cuts everytime there is a referendum. You get what you pay for.
Curiously, why are ball players imported from Latin America, is there a shortage of baseball players in America? Anyone can throw a ball or hit a ball! Aren't they stealing an opportunity? 25-30% of baseball players are immigrants (on a visa sometime) only 1-5% of university students are foreign!
I can throw a ball! I need NY Yankees to sign me up and pay me the wages paid to A-Rod!A Rod born in United States plays for Dominican Republic
There are a few facts that most people are not Aware of.
1) One of the most important prerequisite of hiring a foreign worker on an H1-B is that there is no "American" worker ready willing and able to do that job.
2) In all the talk about Tax-payer money, people forget, all H1-B workers pay their taxes too to the US government. As a matter of fact they pay social security and Medicare taxes for which they can't even receive benefits, if they do not get a green card or do not end up living in the country for a long time.
3) And as a corporation who is struggling with finances and taking loads and aid from government, wouldn't it make more sense to get cheaper worker and save some money.
Yes: Your post about 25-30% of baseball players being immigrants. Is this also true of basketball and football teams? Do these immigrants take away jobs or work for less than American citizens?
debug: I will be writing a followup about what the banking industry has done in hiring foreign workers while firing over 100,000 U.S. citizens.
anonymous: Those are good questions. So far my research has shown that it is a matter of the bottom line, sometimes greed, sometimes for survival in competing with the outsources. I continually advice to ask these questions of your representative in Congress and don't settle for a form letter response.
George: Perhaps it is time for the universities, especially those receiving state or funding, consider that the taxpayers are funding the bill to educate foreign students even if they pay tuition. We are living in a Wiki world with the exchange of knowledge which can be accessed with a computer,key board and monitor.
Robert: Universities and college all around the U.S. are in a financial crisis now. Budgets are being cut, a reflections of the deficits that most states are experiencing. You make the point that foreign students pay four times the rate of U.S. citizens. And if some Universities are getting large contributions of foreign companies who want their future employees educated in the U.S. perhaps it should be with the understanding that they do not take jobs in the U.S. that can be filled by U.S. citizens?
I'm used to Americans not pronouncing my name correctly, its the first time I see that some can't even spell it correctly :-)
Yes I would want to know how banking industry "only" fired U.S. Citizens and retained "ALL" foreign workers or hired new ones, when those U.S. Citizens were ready, willing and able to take up those jobs at the salaries banks wanted to offer to save themselves from going bankrupt.
Deepak: Your points are well taken however from the research I have done, there are U.S. citizens who can do the jobs but corporations can't or don't want to pay the higher salaries for their services. One of the problems this creates is that the middle class in the U.S. shrinking and as that contracts it means less spending on consumer goods, mortgage payments, purchases of new cars. It may be a Catch22 situation.
Thanks Martha. I agree and understand the catch22, but disagree with the cause being presented in this article. In my view that is just a byproduct of a whole bigger problem.
<qoute>there are U.S. citizens who can do the jobs but corporations can't or don't want to pay the higher salaries for their services</qoute>
Maybe, if US Citizens worked at more competitive salaries (note: not equal, just competitive) to the rest of the world, then probably there won't be a need to get foreign workers. Ironically I see a similarity with the mortgage crisis. American workers won't settle for lower salaries but rather loose their job, much like the banks, who would rather foreclose at much lower amount, but they won't stop themselves from adjusting to a much higher rate to people who were happily paying their mortgages.
Deepak: Banks in America have always paid abysmal wages except for those at the top. The banks are in this mess because their greed brought them into the subprime mortgage market and with that came some of the worst corruption imaginable. Even now, no one, including the politicians, have any idea what the banks have done with the bailout money.
I don't mean to make the foreign workers the scapegoats for the financial mess in the U.S. As the middle class in the U.S. see their lifestyle degrading, there is a backlash coming and will be noted by politicians running for office. I expect that before the 2010 elections, there will be some changes made in the law and stricter regulations in regard to foreign imported workers.
"We are not educating foreigners at US taxpayer expense. They pay the full cost of education at a rate four times higher than in-state students"
EXACTLY. Thats why schools LOVE foreigners. MO MONY MO MONY!
"they pay social security and Medicare taxes for which they can't even receive benefits"
For the privileged of working in the US consider the SS and MC taxes the cost of doing business here. Why should I pay more taxes than a foreigner?
Many Engineers like myself came here to work on H1Bs 6-8 years back. I came here with 3 yrs of programming experience and 500$ in my pocket. When Im sent back to India, I will go back a 12 year IT industry veteran and with my 220,000 nest egg. I will leave with 2 telecommute projects that I currently have been contracted to do. This is a huge net gain for India. in terms of capital and skills flow. High skilled jobs go after talent not vice versa. In many IT projects business continuity will seriously affected if key personnel leave. This is not the same as X replaces y in accounting. Project requirements and context is built over months and is not so easily transferrable. The Govt published figures of unemployment rates amoung IT workers is 1.9% National unemployment rate is 7.2% and climbing. Is this much ado about nothing. I signed up at programmers guild website. Faking to be an American citizen. I get detailed instructions with links to H1B articles on the the internet. Im asked to post atleast 10 comments per article using different names. Interestingly one tactic discussed at programmers guild is to occasionaly post rude and arrogant comments posing as a H1B worker. If someone were to commission a pay study among H1s it will further rile american citizens, not because they are cheap but because they are earning a lot more. Fringe cases are being used to marginalise the program. When someone talks about how american tax payer money used for the bailout should benefit only Americans, Im left thinking. I have been paying taxes for the last 8 years, should that then be spent for the benefit of foreign workers and not Americans in general.
While Microsoft and other big name companies do bring in high potential tech labor, that isn't the right story. At the end of WWII we brought in top German engineers to build the rockets that went to the moon, and nobody complained. That influx spurred science, innovation, and created jobs.
The actual problem is the confusion of high level talent influx with an influx of foreign techies for what should be run-of-the-mill COMMODITY jobs. Most of these commodity workers are not the brilliant talent some H1b defenders claim, they are commodity workers with what should be ordinary tech skills, brought in by (mostly) foregin owned vendors, to sell to regular companies at the "going rate" so those companies can outsource like the big guys. These staffing and *consulting* companies pay the visa guy squat, threaten him, and sell him off whilly-nilly. He works long hours and takes abuse without complaint, because if he looks cross eyed at anyone, the company will send him packing and look for another commodity. These vendors vend at the going rate, or maybe pennies below. The larger of these second tier client companies know the game and have retaliated with VMS and reverse auctions and other methods to keep pressure on rates, but they are indiscriminate in hiring. If the visa guy handles things right, he gets experience and training, and eventually a Green Card and Free Agent status. Then can he compete on his own for better tech jobs with citizens and other green cards for going *market* rates, and will possibly settle here as a citizen. So the real problem is that the competition for commodity tech jobs discourages kids (those few that parents can afford to send to college) to train for good paying commodity tech careers at college, all while it's getting harder to find jobs that pay well outside of professions like medicine.
The visa program puts downward pressure on tech wages, but As one H1b commenter says, he will take his money and his brains and return home, and jobs here will lack the necessary people. He may be the top talent we need, but the commody talent these vendors often bring in, are more like cutting into the front of the line at the store, and I don't see anyone saying hugh amounts of money on them. Basically the cost savings is merely from just outsourcing to anyone you don't have to keep on the payroll any longer than necessary or pay benefits to. And where does any such savings actually end up? Golden parachutes and bonuses to top execs.
The same confusion exists at the bottom end, with illegals that come in to do the menial, dangerous jobs that keep prices low so ordinary workers don't have to be paid decent wages to buy meat or get the lawn mowed. For years, we hired illegals to bus tables, do hard agricultural work, and work as nannies, and no one complained. Now suddenly, it's a hot issue.
Where is the real problem? The outsourcing of manufacturing to low wage countries, who don't worry about workers' safety or environmental damage while they build their export engines, and may even manipulate currancy. In the US, we have no good paying blue collar jobs, and high paying jobs are always scarce demanding special talent, so competition for them is fierce. Low level white collar jobs have disappeared too. All that is left are lots of dog-eat-dog sales, marketing, and commsion based jobs selling to BUSINESSES not consumers, or a few high level professional jobs in medicine or science whose services most of us can no longer afford.
Education, Inc., needs to go back to providing education. Subsidized education for US citizens. New industries that actually make something and provide jobs that can afford a decent life. And, universal Medical Care for all citizens.
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