Layoffs
This week several people were laid off at my work. I was spared. While I would like to think that it is because I am a good skilled worker and that my company would be unable to do without me, I know that that is not entirely true. There was to be certain an element of getting rid of low performers; however, not everyone who was eliminated fit that category. For instance, my closest colleague to be laid off was not a low performer at all.
My father says that he feels for my generation being thrust into the worst job market in decades, but I disagree. In the immediate aftermath the youth, and when I say that I mean under 40, are much better equipped to deal with the situation at hand. Who I worry about are my colleagues that were eliminated that gave 20 plus years to my company. The people whose skills are now almost entirely comprised of institutional knowledge that will do them little good elsewhere. What happens to them if they are too young (as many of them are) to retire? Where do they go? How do they begin again?
H1B Visas
And yet I do worry about the youth. This week I read Andrew Sullivan, a journalist who I suspect has never worked in the corporate world that so many of us are familiar with, talk about how the H1B Visa that allows foreign skilled workers to get green cards to work in the United States should be given out more generously rather than the Obama administration’s slight reduction. He further said that every foreign student who graduates from a American university should automatically be given permission to work in the U.S. Excuse me for saying this, but what an idiot. Here he quotes the Economist.
Chinese and Indian immigrants founded more than half of all high-tech companies in Silicon Valley. Immigrants co-founded Google, Intel, eBay and Yahoo. Immigrants contributed to more than a quarter of US global patent applications. Immigrant-founded companies employed 450,000 workers in 2006 and generated $52 billion in revenue.
Instead of trying to restrict the supply of H1B visas, why not increase it massively, starting by giving any foreigner who graduates from an American university the right to a visa. That might be exactly the long-term stimulus that the economy needs.
This is a rather rose colored view of what is happening. I suspect that these people have never had their jobs in danger of being taken by a foreign worker. If a green card was guaranteed by attendance at an American university I believe we would see a sharp increase in foreign student slots in our universities and foreign workers in our workforce.
The so-called “undesirable” jobs
When George W. Bush brought up immigration reform his speeches were colored with talk of immigrants accepting jobs that Americans did not want. I am sure there are many jobs that a typical American does not want, but I am sure a large element of why the jobs are not desirable is the amount of pay that a corporation is willing to offer. Given the expense of living in the U.S. and purchasing your own health insurance which these “undesirable” jobs no doubt require you to do, it is no wonder that many Americans do not want these jobs.
But while he touted the undesirable jobs, the real meat of his proposal was increasing the skilled H1B visas. These are jobs that Americans do want. These are jobs that a Computer Science college graduate would kill for. These are the jobs that are instead going to foreign workers while our college graduates become baristas at the nearest Starbucks.
I think the H1B visa is largely about keeping wages low. The H1B visa requires that any foreign worker make the same amount as their American citizen counterparts. Yet when you increase your job pool by two-fold the wages are not going to be as high.
The desirability of the foreign tech worker
There is no doubt that foreign workers are highly desirable for a reason. Let’s take the educational system in India and China (the largest recipients of H1B visas). These countries are churning out skilled tech industry workers who are ready to begin on day one. I presume (and I could be wrong) that their education is more practical and less theoretical than an American education in computer science. I once met a computer science major here who didn’t even know that the file extension of the code I was writing was significant.
America should be modeling our educational system on the education found in India and China, at least in technology, so that we can guarantee our youth also will be able to be part of the American dream. That they can become skilled laborers too and share the wealth.
Should we eliminate the H1B visas entirely? I think we all know that the H1B visa workers contribute amazingly to this country. Any mass elimination would be highly detrimental. And yet, I think that reducing the number of skilled foreign workers – especially in a time of mass unemployment – is the right move to make. I think an investment in our educational systems and a focus on boosting the skills of the American worker has to be our priority over increasing limits on H1B visas.
I welcome any respectful opposing arguments to the above. Feel free to tell me your story.
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