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The H1B Visa: Twenty-Five Years of Helping Foreigners Take American Jobs
PJ Media ^ | 12/12/2015 | BY IAN SMITH

Posted on 12/13/2015 10:30:54 AM PST by SeekAndFind

Twenty-five years ago, President George H. W. Bush signed into law the Immigration Act of 1990. Instead of reforming the corrosive effects of the Immigration Act of 1965, an act that birthed the mass immigration system we have today, the 1990 act made the situation dramatically worse and make it less likely Americans would fill American jobs.

The act raised the annual immigration ceiling from 530,000 to 700,000 (excluding other types of legal entry like refugee admissions) while creating a coterie of new immigrant and guestworker visas, mostly for semi-skilled and unskilled workers.

Perhaps the most controversial creation of the 1990 act was the H-1B guestworker program. This "grandfather of all American worker sellouts," according to Michelle Malkin and John Miano in their latest book on the subject, is taken up mostly by bachelor degree-holders from India (where such degrees take only three years) and, according to critics, was really designed not for the "best and brightest" but simply for "ordinary people, doing work."

Crucially, the 1990 act entrenched U.S. immigration policy with a system completely indifferent to the nation's general labor conditions. The act's selected intake numbers were not a product of any careful labor market study and, like now, in no way recognized the actual labor-needs of the country.

The number of immigrant-visas based on employment (rather than family connections) almost tripled from 54,000 to 140,000 while the number and size of non-immigrant guestworker programs increased dramatically.

In a study of the bill years after it was implemented, Cornell labor economist Vernon Briggs noted that between the year of its passage and its implementation there were one million fewer workers employed in the country. As he put it, "[c]ertainly the last thing that the slumping economy needed was an infusion of an additional inflow of immigrant job seekers of this enlarged magnitude" -- Briggs rightly sees immigration policy as essentially a labor policy and has long suggested that immigrant visa allotments be adjusted annually according to economic conditions.

Still, the rhetoric surrounding the 1990 act's passage was that the country was facing a massive "skills shortage."

"It was a myth," says Briggs. In reality, he notes, "If labor shortages did occur, industry leaders feared, higher wages would be required to hold present workers and to entice younger workers to aspire to enter these skilled occupations…[f]acing the reality of such a free market outcome, industry leaders sought to find a way for government to artificially swell the skilled labor pool." In other words, the act was largely designed to insulate corporate executives from market discipline.

Regarding the H-1B, its effects were confirmed immediately after the act was passed. As Alan Merten, chairman of the fifteen-member industry and academic panel, the Committee on Workforce Needs in Information Technology, summarized, "we feel [the number of H-1Bs] is so large that we are totally dependent on it and it depresses wages."

This "dependency" on low-wage foreign professionals wasn’t limited to IT executives apparently. When the House passed legislation to increase the H-1B cap to nearly 200,000 in 2001 it chose to do so by a voice vote which allows one’s vote to be kept secret.

When asked about the voice vote, then-Senator Robert Bennet (R-Utah), a lead sponsor of the Senate-version of the bill, said frankly, "a whole lot of folks are against [the bill], but because they are tapping the high-tech community for campaign funds, they don't want to admit that in public." On these sorts of bills, he said, "everyone signs up so nobody can be in the position of being accused of being against high tech."

Bennet's H-1B increase was approved by a vote of 96-1 in the Senate. On the House vote, Congressman Thomas Davis of Virginia, a state that's always been one of the biggest H-1B-employers, candidly stated, "this bill may not be popular with the public but it's popular with the CEOs."

Why it's popular with CEOs isn't a mystery. There's no reason why corporations, at least big, publicly traded ones, should like hiring in a tight competitive labor market. This is especially true for Big Tech firms, which are typically asset-light and have a high level of operating costs going to labor. Most would expect that the pressure on CEOs to meet analysts' profit estimates each quarter will trump any free-market ethos they may have every time. Why else would the industry spend billions on lobbying and public relations related to immigration? Big Tech’s message to the American public might as well be, "the free market for thee, not for me."

The 1990 act cemented in place the corporatization of our immigration system, producing disastrous externalities ever since. Cutting wages by artificially expanding the labor supply increases private wealth at the public's expense, acting like a highly regressive tax on the lower and middle classes.

Two and a half decades of this "immigration tax" has doubtlessly attributed to today's growing income inequality with over half the nation now earning less than $30,000 a year. What will we be the state of American labor if we let the immigration status quo persist for another 25 years? For the American worker and our tech professionals in particular, true reform of our immigration system cannot wait.


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events; US: Texas
KEYWORDS: 2016election; clubforgrowth; election2016; h1b; jobs; tedcruz; texas; unemployment; visa
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1 posted on 12/13/2015 10:30:54 AM PST by SeekAndFind
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To: SeekAndFind

.

Ted Cruz : EPIC Plan to HALT-PROSECUTE H1B Visa Abuse

http://www.freerepublic.com/focus/news/3360258/posts

see the speech at the 34:00 minute time mark ...

https://www.youtube.com/watch?v=rBaVJTddzIo

.


2 posted on 12/13/2015 10:36:05 AM PST by Patton@Bastogne
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To: SeekAndFind

.

Ted Cruz : EPIC Plan to HALT-PROSECUTE H1B Visa Abuse

http://www.freerepublic.com/focus/news/3360258/posts

see the speech at the 34:00 minute time mark ...

https://www.youtube.com/watch?v=rBaVJTddzIo

.


3 posted on 12/13/2015 10:36:19 AM PST by Patton@Bastogne
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To: SeekAndFind

Barry’s “climate change deal” should just about do it for American jobs. People living in this country are going to find it a lot tougher to recharge their “smart” phones and electicitymobiles too. I guess it’s going to be charge the phone and “car” or buy groceries this month. Living in a Socialist country gets pretty tough. That’s why it has never worked anywhere.


4 posted on 12/13/2015 10:38:59 AM PST by FlingWingFlyer (Obama says, the Second Amendment is the greatest recruiting tool that ISIS has.)
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To: Patton@Bastogne

Your a little late to try and get out in front on this one, everyone knows where Cruz stands on H1B visas. If your confused about it, just ask the CFG or CoC.


5 posted on 12/13/2015 10:39:12 AM PST by JoSixChip
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To: SeekAndFind

Sad. Real sad.


6 posted on 12/13/2015 10:39:58 AM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: JoSixChip

I respectfully disagree ...


7 posted on 12/13/2015 10:40:06 AM PST by Patton@Bastogne
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To: JoSixChip
Your a little late to try and get out in front on this one, everyone knows where Cruz stands on H1B visas. If your confused about it, just ask the CFG or CoC.

What is it? Why the mystery? Do tell.

8 posted on 12/13/2015 10:41:46 AM PST by gunsequalfreedom (Conservative is not a label of convenience. It is a guide to your actions.)
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To: JoSixChip

Thanks for saying that.

I hate it when Freepers insult me with things like that post you responded to


9 posted on 12/13/2015 10:42:00 AM PST by Balding_Eagle ( (The Great Wall of Trump ---- 100% sealing of the border. Coming soon.))
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To: SeekAndFind

Its pretty late in the game for Americans to realize that their country has been under assault from within and without for over 100 years by those who want to fulfill the programs proposed in the famous Agenda 21. The window of opportunity to stop this is rapidly closing. We may not have as much as a year left before its too late for what will amount to the start of generations of servitude to tyrannical masters.. Think about it.


10 posted on 12/13/2015 10:46:48 AM PST by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: JoSixChip

I agree. I believe the only reason Cruz came out against H1B visas after supporting a 500% increase in them is because Trump was creaming him on the issue. As long as CFG remain one of Cruz’s bigger donors I do not understand how people can fully trust him on this issue.


11 posted on 12/13/2015 10:53:02 AM PST by jospehm20
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To: Patton@Bastogne
Sen. Cruz Amendment to Immigration Legislation to Increase H-1B Visas Video
12 posted on 12/13/2015 10:54:42 AM PST by kabar
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To: SeekAndFind

Happening at my company as I type. Crap loads of Indian workers replacing American workers. Went into overdrive about five years ago.


13 posted on 12/13/2015 10:55:35 AM PST by servantboy777
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To: SeekAndFind

Well, they evidently fill a crushing need for heavily accented con artists to exploit robocalls from spoofed telephone IDs. And they’re all named Kevin.


14 posted on 12/13/2015 10:56:40 AM PST by sparklite2 (Islam = all bathwater, no baby.)
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To: SeekAndFind

We really need a 2X employer paid “Labor tariff” on H1B.

Make it more expensive to hire via H1B so they only hire the H1B that have skills that we americans truly lack...

Granted this would cut H1b down to 1-5% of their current levels.


15 posted on 12/13/2015 10:57:03 AM PST by GraceG (Protect the Border from Illegal Aliens, Don't Protect Illegal Alien Boarders...)
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To: kabar

Read that bill. Full of holes... eliminate the H1b and send foreign students home to lift up their own countries and their own people. That would be win win for rveryone long run.


16 posted on 12/13/2015 11:03:12 AM PST by amihow (l)
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To: SeekAndFind
Twenty-five years ago, President George H. W. Bush signed into law the Immigration Act of 1990.

Every nonsensical expansion of immigration into the US since the 1960s has the names of Kennedy and/or Bush all over it. And every attempted further expansion that has so far failed.

17 posted on 12/13/2015 11:18:50 AM PST by Will88
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To: amihow

We have about 900,000 foreign students in this country. Many colleges would have a hard time financially if they were sent home. They are hooked.


18 posted on 12/13/2015 11:30:22 AM PST by kabar
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To: GraceG

Do it like Japan, the Government there allows companies to hires those who have a visa however they pay 25% more to each foreigner they hire, they do not have a oversized foreigner workforce for a reason which is that.


19 posted on 12/13/2015 11:36:57 AM PST by the_individual2014
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To: kabar; All

.

The video you posted was published on May 14, 2013.

That was over two years ago.

I personally appealed to Senator Ted Cruz and asked him to reconsider his H1B policy.

He did listen, and CHANGED.

The results are magnificent.

Just listen to the Orlando speech (2015).

.


20 posted on 12/13/2015 11:37:24 AM PST by Patton@Bastogne
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