Tuesday, February 27, 2007

Pro H-1B Visas

No matter HOW you argue it, H-1B (foreign worker visa, usally given out to skilled laborers like engineers, nurses, doctors, etc etc) is GOOD and the US government needs to remove limitations on the max number allowed per year.

Why is it good?

1) You get SKILLED labor. In another words, these people are skilled workers who are going to be working jobs that are high paying. Higher income = higher taxes = more money for social infrastructure.

2) They fill jobs that are NOT going to be filled with the US labor pool. There are certain industries that the American people are usually adverse to, including high tech and healthcare. American businesses need to fill these jobs to make more money. (And of course.. more money = more tax.) Hospitals need doctors and nurses to treat the people... people of THIS country. If these jobs are not filled, it's the American people who ultimately suffer financially, and even perhaps, physically.

3) They are not liabilities. Other than benefits from their employers, they do not qualify for unemployment insurance, tax benefits, medicare, social security, etc.

4) NONE of the country's resources (education, social welfare, etc) were used to train these people so we're really harvesting OTHER countries' crop.

5) Protects against jobs, and hence potential tax revenue, leaving US borders. If these companies bring them here, you get BETTER quality of work (because you can now control quality) and keep their income here.. which means you can tax it. If you outsource these jobs to other countires, then it's just money down the drain b/c their government will get to tax money that the American company has spent.


On CNBC, there were these arguments about H-1B employees:

1) They compete against skilled American employees.

- What the hell? Our economy is based on COMPETITION, not protectionism. What are we? Freakin' communists? Your job is not secure, nor did anyone tell you that it will be or should be secure. If you can't compete, then nature will ultimately take you out. That's just law of evolution. (Don't blame me. Blame Darwin.)

- How many Americans actually apply for these jobs? Really, if there were THAT many applicants, why would companies go out of their way to pay THOUSANDS of dollars sponsoring a foreign national (thanks to wonderful US gov't bureaucracy) AND pay them US salary? There is a CLEAR lack of supply for skilled workers in US, and yes, Bill Gates agrees with this.


2) H-1B Visa employees come here, learn the skills, and go back to their countries with the money earned here.


- This is the most ignoramus comment ever in so many ways.

ONE: If you were an American employer, would you hire a FOREIGN national so you can train his ass? NO! You're gonna hire someone who already knows the stuff. I know this b/c I've DONE this. I don't hire dumb asses. American OR foreign. Dumb ass is a dumb ass whether he/she's in China, India, US, or Mars.

TWO: If you were an engineer from a rural town in India where the average income is about $300/year who get to work in Silicon Valley where the average income is $65k/year, are you telling me they actually have a FINANCIAL incentive to go back? I'm not an Indian engineer from rural India... and this might be a WILD guess... but I doubt he'll want to go back (from pure financial perspective).

THREE: How much do you really save as an employee (American or foreign national) anyway? Going back to that example above... let's say he (a single with no dependents and standard deductions) makes $65k/yr. At 35% tax bracket, he's taking home $42,250/yr or $3,520/mo. Average 1 bdrm apartment in Silicon Valley costs $1000/mo, which leaves him $2,520/mo. Car payment, gas, insurance, maintenance (on let's say bare minimum Honda Civic) is going to be at LEAST $600/mo. That leaves him $1920/mo.

What about cell phone? $45/mo. Probably internet. $50/mo. TV/Cable $50. He has to eat. $200/mo. Go out and socialize. $300/mo. Clothes. $100/mo. YOu figure you add random costs of about $300/mo... and you end up with about $1000/mo in an IDEAL case. I guarantee this. I've been an engineer in Silicon Valley.. but saving $1000/mo is not easy.


Summary: H-1B visas are GOOD for the economy. Makes no sense in legalizing illegal immigrants yet limiting H-1B visas. Just plain stupid.

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