The Senate has introduced a new bill intended to make it harder to hire foreigners into high-tech positions:
The 32-page Senate bill would impose a host of additional obligations on employers. They would be required to pledge that they made a "good faith" effort to hire an American before taking on an H-1B worker and that the foreigner was not displacing a prospective U.S. worker. [...]
In an attempt to discourage employers from hiring foreigners at lower wages than their American counterparts would command, employers would have to pay all H-1B workers the "prevailing wage," as calculated by a different method that raises the minimum to a higher level than it currently stands. [...]
This is a step in exactly the wrong direction, and it is particularly shocking that it has appeared so quickly after Bill Gates and others rightly implored Congress to do the opposite -- to let as many talented people in as wish to come.
Make no mistake: the new Democratic majority is beholden to economic ideas than are outdated at best, and xenophobic at worst. The only people who benefit from these sorts of policies are union leaders. Everyone else -- from US consumers to those who happen to be brown and born in other places -- is worse off.
The best thing we can do for our economy is to let highly-trained, highly-paid inventors set up shop here. Such people pay more taxes and create more jobs than any other segment of society. Sun Microsystems is a good example:
McNealy observed that Khosla and Bechtolsheim both were born in another country, as was James Gosling, who was instrumental in the creation of the Java software technology.
"We are absolutely torching ourselves by not letting all the really smart people come here to the valley. We shouldn't let them in unless we get them to commit to staying at least 10 years. Instead, we do the exact opposite," McNealy said. "Why don't we want another James Gosling or Vinod Khosla to set up shop here."
And the Internal Revenue Service hasn't suffered from Sun's international connections. "How many billions of dollars of taxes have you paid?" McNealy asked of Khosla and Bechtolsheim. "You are hardly a burden on our society."
Our goal must not be to "protect" American workers, but to protect the things that make America a place where people want to work. Understand the difference?
High-tech work can happen anywhere in the world, and the work will follow the talent. If India retains better talent than the US, much of the work will simply flow across borders and be done there. Ditto China, Estonia, and other hot spots.
We can't force wealth and productivity to stay within our borders. Such ham-handed legislation merely pushes smart people, and the wealth they produce, to find other accommodations.
And if you want to look at this geopolitically: a person that desires to work in the US is voting with their feet. If you believe that the world is dividing itself between progress (free markets & democracy) and regression (resurgent socialism & theocracy), then it seems that we should embrace these "voters" with open arms.
No single country can't maintain a lock on any particular industry over the long term. The place where a country can compete is in hospitality toward wealth creation. Shouldn't we do so?
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Update: The Immigration Service opened H-1B applications for fiscal 2008 yesterday. Guess how long it took to reach the limit?
What sort of business imposes a ceiling on its potential customers? There's only one kind.


