American engineers vs. tech management -- the H-1B issue

This is a thought experiment

This is a thought experiment with economics. We need to get back to the basics and stand up for what is right. Our prosperity in America today depends on getting this right. Here’s the explanation:

Also, keep in mind, that the supply costs include the following: materials, labor, manufacturing processes, etc.
BTW for this example, lower supply costs may be anything (not just labor costs) like a reduction in taxes for one seller but not another.

There have always been problems with the free markets when it is influenced by government subsidies to corporations. To explain simply what’s going on, consider this thought experiment:

There are two sellers, #1 & #2, and many buyers in the same market. The two sellers would like to buy their supply to make their product at a low price. The supply includes all inputs to make the product such as materials, labor, manufacturing processes, etc. Ultimately, these two sellers would like to sell their products at a high price and make a profit. Well one day, seller #1 decided that they would like to make more profit but they can’t figure out how to take more market share from seller #2 to increase profits. During a meeting with management, seller #1 decides to lobby the government for a reduction in labor costs to help them be more competitive against seller #2 because their labor rate is too high. The government agrees with seller #1 and decides to increase guest worker programs that essential reduce labor costs. Like magic, the labor rates fall as predicted because of the increase labor supply, and this makes seller #1 happy. Seller #1 can now buy their supply at a lower cost. This in turn, allows their profits to increase because they are still selling high. If seller #2 doesn’t take advantage the resulting new labor rates, then their profit will be lower because they are still buying the supply at a higher price than seller #1. Therefore, seller #2 will see a decrease in profits. If seller #2 continues to be unprofitable, then they will go out of business after some period of time. However, seller #2 wants to stay in business, so they take advantage of the lower labor rates as well. So who wins and who loses? Since the labor rate obviously goes down, then the workers for seller #1 and #2 will take a financial loss.

That’s what happens when the government intervenes. The government basically allowed the sellers to profit at the expense of someone else-the workers. This may not be the intention, but it is certainly the result. Now, let’s consider what happens without government intervention:
There are two sellers, #1 & #2, and many buyers in the same market. The two sellers would like to buy their supply to make their product at a low price. The supply includes all inputs to make the product such as materials, labor, manufacturing processes, etc. Ultimately, these two sellers would like to sell their products at a high price and make a profit. Well one day, seller #1 decided that they would like to make more profit but they can’t figure out how to take more market share from seller #2 to increase profits. During a meeting with management, seller #1 decides to lobby the government for more guest worker programs to help them be more competitive against seller #2 because their labor rate is too high. The government disagrees with seller #1 and decides to not to increase quota on the guest worker programs. Seller #1 is not happy and goes back to management with a different strategy. This time seller #1 decides to improve their manufacturing process to be more efficient and increase productivity. Seller #1 can now buy their supply at a lower cost because they were innovative. In turn, this allows their profits to increase because they are still able to sell high or even slightly lower than before they were innovative. If seller #2 doesn’t become more innovative, then his profits will be lower because he is still buying the supply at a higher price than seller #1. Therefore, seller #2 will see a decrease in profits. If seller #2 continues to be unprofitable, then they will go out of business after some period of time. Well seller #2 wants to stay in business, so they become more innovative. So who wins and who loses? Everyone wins because these two sellers are doing more with less. The results are lower supply costs and increased profits that benefit their shareholders and workers. Moreover, the buyers of their products benefit because the price of their products will ultimately decrease with increased competition.

We’re essentially making a choice between capitalism and socialism today in America. Should the government make rules that benefit one at the expense of another which is common practice in a socialist economy? Now let’s assume that the government agrees with corporations and grants them this subsidy that essentially lowers the living standard of workers and reduces innovation. How long do you think that there will be political stability in America with this kind of policy? America was founding on rebelling against tyranny such as socialism and our freedom is secure because we have fought for it. It is time to rebel again. Have the politicians not learned anything from history or the countries that have socialist economies? We need to get the word out about socialism and the dangers that threaten the American way of life.

Please don't take my visa!

Please don't take my visa! How else will I stink up your company microwave with my cumen-and-curry saturated tupperware? Besides, I don't use soap OR water, so I am less of a drain on your natural resources, even if my code doesn't compile.

Well in case anyone wanted

Well in case anyone wanted to know with certainty whether American employers actively seek to exclude American engineers, look no further than the subhuman rapists of law firm Cohen and Grigsby caught red handed on this YouTube video:

http://www.youtube.com/watch?v=TCbFEgFajGU

I think that's called a RICO violation when people conspire to break the law.

It's time for people to realize that their government has it in for them. This guy. Lawrence Lebowitz can get up and explain how NOT to hire an American, which is not skirting the law, but breaking it, and nothing happens to him and nothing happens to the law firm he represents and nothing happens to the *hores Jen Barton and Jen Peck who explain how to disqualify otherwise qualified candidates.

See how your government works? It does nothing against corporations and passes law after law to destroy your lives. What do we owe them? Nothing.

To strip the spin from the

To strip the spin from the Thu, 11/30/2006 - 1:47pm comments from "anonymous", then - "who cares about right or wrong, people, can't you see that starvation is good for you?"

If the American people choose to be stupid enough to accept that, then they do indeed deserve to starve.

h1B is need of this

h1B is need of this country.
Govt collect billions/year as Social Security tax from H1B's and they dont give it back to them. What will happen to the social security system and the baby boomers.

Also America should throw out H1B doctors . Less doctors, more doctor fee. Screw the already screwed medical system of USA.

I am not an H1B recipient, I

I am not an H1B recipient, I am not an american, I am not indian or chinese. I could say that nothing written in this blog applies to me, but I'll be wrong because I aspire to become a H1B recipient. See, when one of my great American friends suggested I marry him to be able to stay in the US, I told him no because of my integrity.
For me, besides falling in love with an american citizen -which has not happened - H1B is the legal way to work and live in the US for more than a year. But today I am told unless I am in a "qualifying profession" such as engineering, science, nursing or sports, I do not fit the H1B recipent profile.
I came to the US to study something other than the "qualifying professions". Then I made great friends, and fell in love with the people here. Although I would love to go back to my country, I would also love to stay here legally for a while, for more than a year . Have you ever thought that H1Bs are people who just happened to fall in love with this country through their journey, and are trying to stick around by all legal means possible? But, believe me if they won't give me the visa because I am not smart enough to stay, I'll leave...Understand how your country works, it's all about "what makes economic sense". The "qualifying professions" cited earlier make economic sense today in the US. Remember why slavery was abolished? We love to think that it was for "human or natural reasons", but we all know the truth. Using slaves in plantations was to grow and sustain the economy at the time.

WIKIPEDIA, on the history of slavery in America: "In the Americas, slavery played an important role in the economic development of Brazil, Colombia, Ecuador, Panama, Peru, nearly all of the West Indies, Venezuela, and the United States. Slaves planted and harvested cash crops and worked in the construction of buildings and roads, along with performing domestic duties."

Later, abolishing slavery also made economic sense, which is why so many people fought so hard, even died, to get rid of it. And slavery is just one example...

America, realize that unfortunately, somewhere somehow your country is built on the back of others, those who make or are forced to make incredible sacrifices because it just makes economic sense...that's why I don't fit the profile.

SOLUTION:
Change the way your country thinks about money, working and competition you'll have the recipe for eradicating corporate moguls and their H1Bs along with them.

Cheers,

Two years ago you would find

Two years ago you would find 4-6 job posts per day on any of the job boards for embedded software engineers in America. I thought I might try going to India. I found 11 PAGES of embedded jobs, but on closer look, most of those jobs were here. To hire an H-1B engineer, the company must attest that they could not find any Americans. It's kind of hard to find us if you are only looking in India. If it were the case that Indians were in competition as the "best and brightest", the posts would not have had to be hidden from us competitors. And oh, BTW, they won't hire us in India.

It's not simply "the" administration. By the year 2000, while working on a 3 man team with 2 Chinese, I was told that in all the big companies in Silicon Valley, you'd find 80% Indian and 20% Chinese. In 2002 one of my fellow female engineers was happy to take a $30/hr job with Motorola. She was the only woman and only American amongst 80% Indian and 20% Chinese.

The "best" engineers are experienced Americans, since you don't learn this stuff in school, and until lately the Americans were most of the experienced. 1.5 years ago the embedded jobs opened up for us. Why? New projects. The lower grade of know-how can pick up on what us Americans started, but they still don't have experience to start something new. Companies are crying for us now. I plan to squeeze every drop out of the current higher rates, and when they lay us all off again, I'll be into something else.

The Americans ARE the best and brightest, because we are more independent minded and creative. Chinese are raised to not speak up, not to have a better idea, and Indians are concerned about getting ahead of the rat race, politics. Our culture fosters creativity. So let's hand them our old technology. We'll just come up with new. That's what we'll always do in America. I believe in us.

The disregard of engineering

The disregard of engineering by management started when new MBA's replaced managers that had technical backgrounds.
H-1B abuse is just one part of the deliberate destruction of American Engineering. The biggest violators are large publicly traded corporations - smaller private companies don't have much use for foreign outsourcing because they are actually working unlike all of these big company management idiots who play with themselves in meetings all day.
This will continue until China implodes and our dependent economy collapses. Unfortunately , these big-corporate, "World Citizens" types will be insulated.

Thank-you all for posting on

Thank-you all for posting on my blog.

I know this is an emotional issue for all of us.

I want the H-1B engineers to know that I and most Americans do not have any problem with them personally. We welcome you to America as long as we are not unemployed as a result. And once you're a citizen, you are an American with the same right to complain as we have.

Our objections are completely with the CEOs that have abused our laws and the congressmen who make the laws knowing full well that it is not in the country's best interest.

Our constitution clearly says that an American company cannot replace a citizen with a foreign worker. That is the crux of our objections.

I fully endorse immigration to America. But like everything else, it must be done in proper moderation as not to hurt current citizens. This is true for all immigration issues.

Certainly the vast majority of H-1B immigrant engineers are good people and want to move to America for many of the same reasons that my grandfather did in 1914.

The passion that is expressed here on these posts shows that corporate greed and an obliging congress has deteriorated the principles that make up this country. And the freedom of speech and freedom of the press that is exemplified on these pages is the only tool that we have to rectify the situation. God Bless America and the Bill of Rights.

Thank-you all for posting. I hope that next year will be prosperous for us all.

Have a Happy New Year