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In Washington, D.C., today, Bill Gates testified before the U.S. House Committee on Science and Technology, calling again for Congress to reform the H-1B visa program that Microsoft and other companies use to bring foreign workers to the U.S.
Here's an excerpt from the text of his prepared remarks (PDF, 20 pages).
Congress's failure to pass high-skilled immigration reform has exacerbated an already grave situation. For example, the current base cap of 65,000 H-1B visas is arbitrarily set and bears no relation to the U.S. economy's demand for skilled professionals. ...As a result, many U.S. firms, including Microsoft, have been forced to locate staff in countries that welcome skilled foreign workers to do work that could otherwise have been done in the United States, if it were not for our counterproductive immigration policies. Last year, for example, Microsoft was unable to obtain H-1B visas for one-third of the highly qualified foreign-born job candidates that we wanted to hire.
If we increase the number of H-1B visas that are available to U.S. companies, employment of U.S. nationals would likely grow as well. For instance, Microsoft has found that for every H-1B hire we make, we add on average four additional employees to support them in various capacities. Our experience is not unique. A recent study of technology companies in the S&P 500 found that, for every H-1B visa requested, these leading U.S. technology companies increased their overall employment by five workers.
The Microsoft chairman's assertions didn't go unchallenged. The question-and-answer period included a lively exchange on the topic between Gates and U.S. Rep. Dana Rohrabacher, a California Republican.
A transcript, gleaned from the webcast (accessible here):
Rohrabacher: If we bring in more people from the outside, realizing that we're bringing the most talented people from other countries, will it not hurt those countries? And will it also not depress the wages in our own country that people like yourself would have to pay your employees in order to get quality people or in order to train people within our own society?Gates: No, no. These top people are going to be hired. It's just a question of what country they do their work in.
Rohrabacher: I'm really not talking about top people here. You know ... there's a lot of other people in society rather than just the top people. It's the B and C students that fight for our country and kept it free so that people like yourself would have the opportunity that you've had. Those people, whether or not they get displaced by the top people from another country is not our goal. Our goal isn't to replace the job of the B students with A students from India, because those B students deserve to have good jobs and high-paying jobs.
Gates: That's right, and what I've said here is that when we bring in these world-class engineers, we create jobs around them. ... The B and C students are the ones who get those jobs around these top engineers. And if these top engineers are forced to work, say, in India, we will hire the B and C students from India to work around them.
Rohrabacher: But according to BusinessWeek, almost 150,000 computer programmers have lost their job in this country since the year 2000. Now, my reading of all of this is that there are plenty of people out there to hire but people want to have the top quality people from India and China and elsewhere, and they're willing to have these 150,000 American computer programmers just go unemployed.
Gates: Actually, BusinessWeek doesn't do surveys. I think you're referring to a quote in BusinessWeek from an Urban Institute study ...
Rohrabacher: That's what I said, according to BusinessWeek, yeah.
Gates: It's not according to BusinessWeek. There was a study that a group at Urban Institute did that was deeply flawed in terms of how it defined what an engineer is. When we say that these jobs are going begging, we're in business every day. We're not kidding about it. These jobs are going begging, and the result is that in a competitive economy ...
Rohrabacher: You'd have to raise wages.
Gates: No, wages are --
Rohrabacher: If a job's going begging, you raise wages, now in a --
Gates: No, it's not an issue of raising wages. These jobs are very, very, very high-paying jobs. And we are hiring as many of these people as we can.
Rohrabacher: Well, let me give you one example --
At that point, committee chairman Bart Gordon interrupted to say that Rohrabacher's time was up, and Rohrabacher suggested that he and Gates continue the discussion at a reception during the evening.
"I'm sure he's excited to know you'll be there," Gordon said.
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I think taking a larger share of Facebook would be a good move. Facebook is preparing itself to be the platform of the web and this is exactly what MS needs. Also incorporating facebook services with outlook and hotmail could be extremely useful. Unfortunately, a complete buyout would put MS's name behind the service which could turn users away (as fickle as young people are) so, like the previous 250 million investment, it would need to be quiet."
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Posted by unregistered user at 3/12/08 5:23 p.m.
Dana Rohrabacher doesn't quite get it, either. What's been happening is that A and B student US citizens have been replaced by C students from off-shore.
"U.S. engineers... [are] more creative, excelled in problem solving, risk taking, networking and [have] strong analytical skills..."
http://www.kermitrose.com/econ200707.html#20070702
"Dozens of employers asked to compare American engineers to their much-vaunted colleagues from India and [Red China] agreed that 'in education, training, quality of work, you name it, in every which way, Americans are better'. Even the best schools in those countries 'don't hold a candle to our best schools.', he continues. Newly hired American university graduates 'become productive within 30 days or so. If you hire a graduate of an Indian university, it takes between 3 and 6 months for them to become productive.'"
http://www.kermitrose.com/econ200801.html#20080104
"Dynamic" vs. "transactional" engineers.
http://www.kermitrose.com/econ200512.html#20051213
http://www.kermitrose.com/econ200512.html#20051227
http://www.kermitrose.com/econ200601.html#20060110
The base limit on H-1B visas is a vastly excessive 65K, the total limit is over 85K, broken down as follows, according to USCIS:
1,400 nationals of Chile;
5,400 nationals of Singapore;
20,000 with master's and doctor's degrees from US colleges and universities;
58,200 with "bachelor's degrees or equivalent experience" from any hole-in-the-wall in the world;
unlimited visas for those employed by non-profit research outfits;
unlimited visas for those employed for local, state and federal research;
unlimited visas for those employed by US colleges & universities.
Those numbers constitute the current open-ended "cap". The numbers actually approved and the numbers of visas issued have been quite a bit above those numbers according to USCIS and State Department data.
H-1B visas approved (USCIS):
year Initial renewed+extended total
1999 134,411 na na
2000 136,787 120,853 257,640
2001 201,079 130,127 331,206
2002 103,584 93,953 197,537
2003 105,314 112,026 217,340
2004 130,497 156,921 287,418
2005 116,927 150,204 267,131
H-1B visas issued (DoS):
1996 58,327
1997 80,547
1998 91,360
1999 116,513
2000 133,290
2001 161,643
2002 118,352
2003 107,196
2004 138,977
2005 124,374
2006 135,861
If they were for the "highly skilled" "best and brightest" a more reasonable cap would be a hard 2K visas in use at any one time.
Yes, the E-3, F, H-1B, J, and L visa programs need to be reformed. First, cut the numbers of visas so that more of the bright, well-educated US citizens can be brought back from cat-sitting to something resembling full employment of their skills. It's a terrible waste to subsidize the educations of foreign students, make it more difficult for US students to succeed, and then destroy the careers of US students who had succeeded, while transferring knowledge and research techniques and capital equipment outside of the USA.
There is no requirement that H-1B visa applicants be "highly skilled". Indeed, the US Labor Department data show that 56% of applications filed are for H-1B workers with the lowest skill level (level 1 of 4).
http://www.cis.org/articles/2007/back407.html
USCIS reports show that hundreds are issued each year to those lacking the equivalent of a US high school education, while hundreds more lack the equivalent of a bachelor's degree. With a few welcome exceptions, these are not "best and brightest" individuals, but ordinary people doing ordinary jobs for which the USA has been producing an excess of US citizen talent for decades.
These elevated numbers of E-3, F, H-1B, J, and L-1 visas have been being used to drive down compensation, to facilitate off-shoring, and to facilitate age discrimination.
http://www.prospect.org/cs/articles?article=how_guestworkers_promote_outsourcing
If a foreign student cannot obtain US employment within 2 months after graduation from a US university, then their skills and knowledge must not be in demand. Rather than increasing the time they can legally remain in the USA after graduation from 1 year to 2 years, it should be reduced.