Trump Immigration Order Sends Big Tech into Advocacy Overdrive

Guest Post by Joe Guzzardi

Immigration Order

Never has Big Tech pushed harder for cheap labor for the rich and powerful than it’s done in the last few weeks. The latest available data show that, from 2005 to 2018, Amazon, Apple, Facebook, Google and Microsoft laid out an aggregate $582 million to protect their collective interests on a range of topics that include protecting the inflow of employment-based visas, specifically the H-1B.

Immediately after President Trump’s June Executive Order that would suspend certain visa categories, including the H-1B, Big Tech went apoplectic. False narratives abounded, among them that restricting the H-1B visa would set back “America’s economic success,” stifle “America’s attractiveness to global, high-skilled talent” and prevent “the best and the brightest global talent” from contributing to the nation’s economic recovery. Big Tech threatened that “now is not the time to cut our nation off from the world’s talent or create uncertainty and anxiety….”

For decades, cheap labor champions have hawked the same tedious tripe. The truth is the exact opposite: the H-1B visa has displaced millions of skilled U.S. tech workers, and kept millions more American college graduates unemployed in the profession of their choice. Back in 2016, an unlikely source confirmed that U.S. grads are plentiful, but that – alas – they’re costlier than imported labor. Then-Infosys Chief Executive Officer Vishal Sikka admitted that the U.S. tech employment pool is abundant. He said, “There are enough universities, enough ability to hire, enough ability to teach…”

Big Tech is also solidly behind deferred action for childhood arrivals, another corporate favorite that contributes to the Silicon Valley labor pool. DACAs qualify for employment authorization documents, and many among the 700,000 eligible DACAs are in the workforce.

Meanwhile, as Big Tech scorns President Trump for his “dangerous” Executive Order, it’s simultaneously laying off or furloughing thousands of its current employees. The obvious contradiction: if, as Big Tech insists, it needs new employees so desperately, it should hold on to its existing workers who are already on the job, know their duties and don’t have immigration issues. But that’s not Big Tech’s end game. Instead, Big Tech wants what Congress has always provided – younger, cheaper, overseas workers.

In May, research from the liberal Economic Policy Institute found that 60 percent of H-1B positions that the Department of Labor certifies are assigned wage levels “well below the occupation’s local median wage.” The H-1B’s program regulations permit DOL to assign the lower wage levels but also provide authority to change the levels upward. Yet DOL has left the lower wage levels unchanged. EPI estimates, perhaps conservatively, that half a million H-1Bs are employed in the U.S. The majority of them work for the usual suspects – Amazon, Microsoft, Walmart, Google, Apple and Facebook. EPI recommends that DOL require and enforce above-median wages for H-1B workers to ensure that companies will use the immigration program as intended – to complement American workers – instead of using the visa to fill entry-level positions at a deep discount, and thereby enable U.S. tech workers’ displacement.

Nothing – not 9/11, not the 2008 Great Recession and not COVID-19 – keeps Congress from promoting more H-1B visas. This means the inevitable dismissal of U.S. tech workers. Two key congressional positions that oversee proposed immigration legislation, the Senate and House Judiciary Committees, are held by H-1B advocates, Lindsey Graham and Jerry Nadler, respectively.

At the same time, the wealth of Big Tech barons is stratospheric. The Bloomberg Billionaires Index ranks Jeff Bezos, Amazon CEO, as the world’s richest man; his estimated net worth is $189 billion. Every 11.5 seconds, Bezos earns the annual salary of his lowest paid, minimum wage worker. Microsoft founder Bill Gates is behind Bezos, with a net worth is $118 billion. Facebook’s Mark Zuckerberg ranks fourth with $93 billion net worth, and former Microsoft CEO Steve Ballmer rounds out the top five with a $76 billion net worth.

The British have a saying that applies to the self-serving congressional and corporate elitists whose efforts have taken away jobs from Americans, and given them to foreign nationals: “I’m alright, Jack.” Congress has its power, and Big Tech tycoons have their wealth – they’re alright. But, U.S. workers are left to fend for themselves.

-----------------------------------------------------
It is my sincere desire to provide readers of this site with the best unbiased information available, and a forum where it can be discussed openly, as our Founders intended. But it is not easy nor inexpensive to do so, especially when those who wish to prevent us from making the truth known, attack us without mercy on all fronts on a daily basis. So each time you visit the site, I would ask that you consider the value that you receive and have received from The Burning Platform and the community of which you are a vital part. I can't do it all alone, and I need your help and support to keep it alive. Please consider contributing an amount commensurate to the value that you receive from this site and community, or even by becoming a sustaining supporter through periodic contributions. [Burning Platform LLC - PO Box 1520 Kulpsville, PA 19443] or Paypal

-----------------------------------------------------
To donate via Stripe, click here.
-----------------------------------------------------
Use promo code ILMF2, and save up to 66% on all MyPillow purchases. (The Burning Platform benefits when you use this promo code.)
Click to visit the TBP Store for Great TBP Merchandise
Subscribe
Notify of
guest
41 Comments
psbindy
psbindy
July 22, 2020 8:42 pm

As I understand, the reason for having the H-1B program is to supply workers when American workers (techs) are not available. If tech positions truly cannot be filled by American tech grads, the companies should be pleased to pay the foreigners double the going rate plus benefits (401K, vacation, medical insurance, retirement, sick pay/leave etc.) commensurate with the normal industry standards.

We should all be screaming this to our elected reps in my opinion.

Frank
Frank
  psbindy
July 22, 2020 9:27 pm

Worked for an IT firm that handled close to 1/3 of all credit card transactions in the US. They were busy laying off US workers while, at the same time, were lobbying the US govt to increase H-1Bs because they ‘couldn’t find enough US workers for the positions’……yeah, right.

Llpoh
Llpoh
  psbindy
July 22, 2020 9:31 pm

The top companies already pay double the going rate. An imported software engineer for say Google would be on something like $150k or more, all up. That is far, far more than the average rate for a software engineer.

The average software engineer cannot do the job at Google. It is akin to a ditch digger being able to do nuclear physics. Lots of techs out there. But very few Einsteins amongst them. The cutting edge companies need top talent. They are hard to come by.

It is the low level companies that are bringing in the cheap labor. The US have plenty of engineers and programmers that can do those jobs.

Iska Waran
Iska Waran
  Llpoh
July 23, 2020 2:22 am

You’re probably right about the cutting edge companies. I’ve had a lot of interaction with H-1b programmers at companies like Seagate and they’re dunderheads who think they’re brilliant.

Llpoh
Llpoh
  Iska Waran
July 23, 2020 3:22 am

Iska – despite the morons downvoting me, Ipersonally know several young people working at the major tech companies on H1Bs, and I know for a fact they are all on $200k+. I know it for a fact.

I also know as an absolute fact that each one of them could have 5 to 10 offers within a week if they choose to leave where they are.

These kids are not your average software engineers. They are special. They are world class. And the big techs want them and need them, and they do not care from where they come. They will hire Americans if they are capable of creating the algorithms.

A relative of mine works for one of these companies. He is well under 30, and makes$300k a year. To get the initial job, the test comprised of writing three algorithms. If you can do it, you are almost 100% in. How many software engineers can do it? No more than one out of hundreds.

And once they find you, you instantly become a sought after commodity. If you are a software engineer at Google, Amazon, Microsoft, Uber, etc., you literally can have a new job tomorrow at gargantuan wages.

But if you are a run of the mill software engineer, you simply are not good enough for those guys.

It is the mass hirers of H1B that are the problem. They pay less than the going rate for their H1Bs. But the big boys do not.

Does the US want to limit how many world class engineers work for their very best tech companies, leaving those people to work for the competitors? That is gross stupidity.

I really do not understand the ignorance around here. Narrative is more important than data and facts.m

Anonymous
Anonymous
  Llpoh
July 23, 2020 4:58 am

You are being down voted because you are citing people making $200-300k per year as typical.

dors Venabili
dors Venabili
  Anonymous
July 23, 2020 5:41 am

But he isn’t citing them as typical… The quintessence like I understand is that the big guys hire anyone who is good for celestial wages and the mass programmers who are necessary to keep the gravel work functioning either don’t exist here /and or the small guys have to work with tight budgets.

Llpoh
Llpoh
  dors Venabili
July 23, 2020 9:27 am

Mediocre software folks are plentiful in the US. They are just more expensive than the Indians and such, and hence why the lower tier tech firms want tons of H1Bs. Google and such only want a limited number relatively speaking – a few thousand a year, certainly not the current hundreds of thousands.

Llpoh
Llpoh
  Anonymous
July 23, 2020 9:27 am

They are typicalish at Google.

Jason Lasky
Jason Lasky
  Llpoh
July 26, 2020 3:30 pm

What you failed to mention the INDENTURED part of being on an H-1B visa. High salary so what? They are bounded by a LABOR CONTRACT!

daniel
daniel
  Llpoh
July 23, 2020 12:00 pm

“narrative is more important than data and facts” he says as he provides no data and only anecdotes.

the current limit for h1b’s is like 70k/year if i recall correctly. so if your super special 3 algorithm test with 1 out of hundreds success rate is real, we can go ahead and stop bringing in at least 69k+ foreigners taking high paying jobs away from competent white men.

there are 200 million whites in america. there does not exist a job criteria in this country that cannot be performed by one of those whites (which is the whole point of the job visa scam). Damn sure not with 50M unemployed. Or with over 100k whites killing themselves every year, many because their jobs were outsourced to fucking foreigners.

Llpoh
Llpoh
  daniel
July 23, 2020 6:53 pm

Dumbshit Daniel – H1B salaries are published, and can be easily found. Do a bit of research. TC gives a Lin below. If you think that the US can create all the Einstein’s it needs, you are a complete imbecile. If you think the US has more exceedingly high IQ individuals than China and India and SKorea then you are a total idiot.

Those people do not grow on trees.they are exceedingly rare. The top .5% of workers would be 800,000. Many of those go into medicine, law, business, etc. Some are simply worthless as employees.

So, the large tech companies seek those employees wherever they can be found. Most come from the US, but many can be found overseas, and it is cutting your own throat to suggest they not be allowed in.

You clearly have zero experience with genius level people. They are Rae, and they are valuable, and one of those in software is worth a thousand average engineers. And hence why they pay them so well.

The stupid around here burns.

TampaRed
TampaRed
  Llpoh
July 23, 2020 7:12 pm

is it ignorance or just not believing what govt & big biz tell them?

Llpoh
Llpoh
  TampaRed
July 23, 2020 8:16 pm

Tampa – no idea. Just looked up some stats. The top tech companies employ no more than a few thousand – Google about three, Microsoft one, etc. And median salaries are in the $150 k range. So maybe 10,000 or so visas are used by the very top tech companies. Why would the US want to keep those top techies out of the country? Oh, right – narrative! We have folks that are just as good! Plenty of them! Bullshit. The just as good folks are already hired and working.

Interestingly, guess who employs a shitload of very highly paid H1Bs – medical and research companies. Yep, it would be a great fucking idea to chop of the supply of top medical and research personnel.

Glass door says that the average software engineer salary in the US is $92k. The major tech firms pay far more than that to the visa holders. Why is that I wonder?

Well, because they are world class software engineers, with IQs probably averaging 140+.

Jason Lasky
Jason Lasky
  Llpoh
July 26, 2020 3:35 pm

The Glassdoor report has been debunked. http://econdataus.com/h1b_salary16.htm

Jason Lasky
Jason Lasky
  Llpoh
July 26, 2020 3:29 pm

You are being downvoted because you are using anecdotal evidence to pass as “data and facts” when the data and facts show a different story. You’re clearly an example of an idiot. The Economic Policy Institute stated that even Big Tech companies were gaming the H-1B visa program to pay cheaper salaries.

H-1B visas and prevailing wage levels: A majority of H-1B employers—including major U.S. tech firms—use the program to pay migrant workers well below market wages

TC
TC
  Llpoh
July 23, 2020 8:49 am

We’ve had this argument before. Your opinion is skewed because you see the high salaries of the top H1Bs (which you can lookup on h1bdata.info) but don’t see what the brightest and best American citizens make (snoop around glassdoor for a peek.) As Taleb would say, it’s an extreme meritocracy. Sure, there are some really bright H1Bs, but they are the exception. Most H1Bs are paid less, some significantly less, than their American counterparts doing the exact same job. The net result is a suppression of wages, not an increase (how could it be otherwise?) It’s also worth noting that every Asian (Indian, Chinese and Korean) I’ve worked with over the last 3 decades has been a diehard liberal, which is probably why the politicians are so eager to import them.

Llpoh
Llpoh
  TC
July 23, 2020 9:24 am

I have said most of the H1Bs are mediocre. That does not mean the US should not take the really good ones. They should do that. Deprive the opposition, augment your own.

TC
TC
  Llpoh
July 23, 2020 11:22 am

I don’t think we’re too far apart on this. Even more egregious is that we graciously subsidize foreigners to get their masters and PhD degrees here in the US, so yeah allowing them to take that knowledge and skillset back to their native country probably makes less sense than keeping the best here.

Kevin
Kevin
  psbindy
July 23, 2020 11:43 am

Good point. If markets were truly free that would be exactly the case. In this instance they are not. They’re creating not only an oversupply but through social darwinism are ensuring that Americans do not get hired.

Anonymous
Anonymous
  psbindy
July 24, 2020 10:28 pm

Mike F&*ing Lee (R) Utah

Anonymous
Anonymous
July 22, 2020 9:17 pm

Cheap labor on US soil imported to screw American workers demanding better wages , working conditions & benefits !
Like in the old days when American workers got what government employees enjoy ! Full retirement with benefits living wage plus ! This created a tax base that built schools , infrastructure , roads bridges etc … Cheap labor does not do that and quality of life in America suffers .
China uses literally slave labor for American companies profit margins ! This does not help American people or the country

Llpoh
Llpoh
July 22, 2020 9:26 pm

The big tech companies use the very best and brightest they can find. They pay their H1Bs very well indeed. They use Americans who are qualified. However, they are seeking the top 0.5% of techies, world-wide. And they do not grow on trees. Top US techies can snap their fingers and get a job with the top tech companies instantly. And that is the truth of it. And they are not trying to keep importing techies because of the low cost – not at all. They need top talent, from wherever they can get it, and they pay enormous salaries to those people. And if their access to world-wide top talent is cut off, it will hurt them.

It is the low level tech companies that use H1B are the ones that are underpaying. They use mediocre talent at cheap rates, and great numbers of them – hundreds of thousands of them. Those types are readily available by the hundreds of thousands in the US. They should be cut off at the knees.

But if the Amazons, Googles, etc. are cut off from the supply of very top talent, they will simply relocate overseas. Tech does not have to be located in the US. It is mobile, and only requires an internet connection. Working from home is quite easily accomplished for instance.

The answers are not one size fits all.

Martel's Hammer
Martel's Hammer
  Llpoh
July 23, 2020 12:01 am

Yep like most things it is not one size fits all…..a thousand monkey’s banging on typewriters will not come up with King Lear or Moby Dick. Like Llpoh points there is indeed rampant abuse for the average “doer”…..The super talented are likely numbered in the low thousands……the other 495,000 we don’t need.

Frank
Frank
  Martel's Hammer
July 23, 2020 12:08 am

The IT shop I mentioned above was one of the large ones, and I got to see some of those rare geniuses driven out of the company by management follies. Others took note and left as well.
H1-Bs will not fix bad management, it will only place a temporary bandage over the cancer.

Steve
Steve
  Llpoh
July 23, 2020 12:22 am

White Americans built the modern world. Kinda hard to believe those companies can’t find anything much better than ditch diggers here in the US.
James Demore, typical idiot I presume?

Iska Waran
Iska Waran
  Steve
July 23, 2020 2:35 am

The Indians, Pakis, Sri Lankans and Chinamen who come here are the smartest ones in their countries. All of the big tech companies are run by white Americans except Google (and that was started by YT’s). And there are a lot of white and Asian American workers within these companies.

Llpoh
Llpoh
  Iska Waran
July 23, 2020 3:26 am

As I say, one of my relatives is a software engineer at a major tech company.

He says the calibre of the engineers, many from India, China, as well as the US, is far beyond outrageous. They are world leaders, they are outstanding, and they are few in number overall. And they get paid a fortune.

The US needs all they can get of those. The number of visas would be a few thousand a year.

Llpoh
Llpoh
  Steve
July 23, 2020 3:28 am

Demore filed suit against google.It has been dismissed.

Basically, the idiots posting in here have the point that we don’t need to import no stinking Einsteins, they grow on trees here in the US.

They do not grow on trees anywhere. Take the ones you can find.m

Glock-N-Load
Glock-N-Load
  Llpoh
July 23, 2020 8:01 am

I would bet the US government sees it as a win for all of America if as many geniuses as possible work for US firms instead of our enemies.

Ken31
Ken31
  Steve
July 23, 2020 11:25 am

Precisely.

Glock-N-Load
Glock-N-Load
  Llpoh
July 23, 2020 7:57 am

For the life of me, I cannot understand why a top 0.5%er would stay at one of these to tech firms for long. They could become billionaires on their own with their expertise. There are still many entrepreneurial opportunities for these types of people.

Llpoh
Llpoh
  Glock-N-Load
July 23, 2020 9:22 am

WIP – no, those folks are not certain to become that rich. And when you are making several hundred grand a year risk free, leaving for high risk enormous reward has to be evaluated in that context.

Glock-N-Load
Glock-N-Load
  Llpoh
July 23, 2020 12:34 pm

If they are building Googles for $300k they WAY underpaid and could choose any industry and take over. Shit, Wayne Huizenga did it with 2 very successful corps WITHOUT 0.5% IT skills. IT is the ONLY game in town, imo.

Ken31
Ken31
  Llpoh
July 23, 2020 11:25 am

Utter bullshit.

Jason Lasky
Jason Lasky
  Llpoh
July 26, 2020 3:43 pm

As Professor of Computer Science Norman Matloff says: “this is the bad line of thinking. The Intels and Microsofts are good, but the Infosys and TATA are bad. Even Silicon Valley companies are exploiting the H-1B visa program to get cheap indentured labor.”
Dude, stop it. You are pushing false lies here. https://medium.com/@normanmatloff1123/the-tech-shortage-of-talent-is-a-myth-523fe2a014c3

overthecliff
overthecliff
July 23, 2020 12:39 am

Money talks and Congress listens. Guess what is going to happen.

Ken31
Ken31
July 23, 2020 11:22 am

One wonders if they are really saving money after the billions spend lobbying or if they are playing a long game with some other goal in mind.

gammer
gammer
July 23, 2020 12:35 pm

Its all about Labor Cost Arbitrage, always has been and always will be. When hundreds of IT are training their replacements, those are certainly not the cream of any crop taking those positions its Labor Cost arbitrage. Yes, there are exceptions, but those exceptions are an extremely rare. So quit talking about the half percent when talking about the H1B system. I work a multi national that has H1B’s from all over, ALL of the ones I encounter are basically indentured servants who will not do anything spectacular. Those in my engineering field are typically below average in many respects, the first of which is their mastery of the English Language. Second is their backgrounds from third world countries is frankly “third world” they do not have the understanding of complex systems, mechanical, electrical or otherwise. They don’t even understand basic infrastructure, much less a basic engine or power equipment. Its all about Labor cost arbitrage, otherwise they would bring in people from the first world competition.

Llpoh
Llpoh
  gammer
July 23, 2020 6:57 pm

Gammer – and those mediocre ones should not be allowed in. But the top ones? You have to grab up every Tesla, Einstein, etc. you can get your hands on.

Jason Lasky
Jason Lasky
  Llpoh
July 26, 2020 3:45 pm

If you want the “top” people, then those people don’t come on H-1B visas. They come under “O” visas – for the exceptional best and brightest. There’s no cap on “O” visas. So if you want a true genius to come, you would be advocating for them to come on “O” visas. Not H-1B. H-1B is a cheap labor Indian visa. 75% of H-1B visas go to Indians. Those are the facts!