Posted on 11/17/2002 7:03:27 AM PST by FlyingA
As a consultant, I've been hit by the slowing of the economy and the destruction of the tech sector, I've recently caught myself dwelling over the prosperous times of the late 90's when I was making 6 figures. Being one to want to know the wheres, whats... and particularly the why's... I started researching the issues behind the downfall of the tech sector within the U.S.
While this is hardly a comprehensive explanation of whats wrong with the economy and every aspect of the tech sector, it is in my opinion the quickest and most obvious thing thats wrong with it today.
What I found out was that through out the mid & late 90's... Large software corporations were experiencing a very public and published labor shortage of skilled tech workers in America. Companies like Microsoft and Oracle among other large corporations began to lobby Washington to increase the cap on H1-B visas from 65,000 to 130,000 per fiscal year looking to get the bill "American Competitiveness in the 21st Century Act" (S.B. 2045) passed.
This bill received a lot of resistance from 1996, when it was first proposed, through 2000 and looked like it was dead several times. Due to amendments on both sides of the isle it remained alive and in Oct 2000, then President Clinton signed the bill S.B. 2045 into law. Which is effective from 2000-2003 and allows the number of 6 year H1-B visa to ultimately be increased to 195,000 per fiscal year. Over the last 2 years, the number of individuals in America under H1-B visa has risen to 650,000 people.
36% of the unemployed 1.8 million Americans could be working if it wasn't for this law. It seems to me that we as high tech workers need to right our Congressmen & Senators and put a stop to this law.....
FlyingA
While this is probably a typo, it actually makes sense as written (speaking as one of those 1.1 million laid off workers).
Also, it was a market response to unrealistic salaries, based on a presumed shortage. Some, but not all, were based on dot.coms that "needed" 1,500 people to manage a web site.
Bright 14-year-olds routinely write HTML and have web sites as hobbies. But with a fortune in VC money at the time, the cycle was:
1: Get the funding.
2: Hire people to do your job.
3: They then hired people to do THEIR jobs.
4: Foosball, Airon Chairs, and pool tables, and hundred hour weeks.
5: Crash and Burn.
I have been out of work, myself, and know the feeling, and have sympathy for people in that situation. But making six figures, and spending it ALL, surely knowing at some level that things were not producing real value, does dilute the sympathy a bit.
if I have an idiot with an American passport, and a genius with an Indian one, how will I and my country benefit from hiring the moron over the genius?
The entire point is that most of these off-shore programmers are of low quality. How do I know that? I've seen 3 such projects turn into diseasters. The dot-com collapse is an entirely different issue.
Yes, one issue may be laziness. The public schools' lack of standards may be another. But if they perceive that after some years of hard study they'll have the prize they worked for snatched away and given to someone with an H1B, they'll surely see that prize as less valuable.
Unintended consequences, perhaps?
Interesting line of thinking...
Is buying a German car a sellout of the American auto industry?
Is buying a Japanese TV a sellout of the American electronics industry?
Is hiring an Indian programmer a sellout of the American tech industry?
36% of the unemployed 1.8 million Americans could be working if it wasn't for this law.
Quite possible, but why is that a good thing? Almost 300M of Americans would have to pay their inflated salaries. Why shouls they? Why should I pay you --- through higher privces of the company you work for --- $100,000 if I can buy the same service fro $60,000?
My advice to you is not to look at govermental actions but to study a bit of economics.
And, incidentaly, you do not sound like a consultant at all: you were a contract programmer, not a consultant; the companies outsources to you a part of their labor but did not seek your advice on how to grow their business, satisfy their customers, deal with their competition, etc.
Consider the counter effects we see from the current fraud-full H1B program.
(1) People with little to no understanding or love for the US, its Constitution and princibles, free markets and capitalism are brought here. They displace citizens who have been schooled in these princibles. The low wages and long hours for the H1B program, and their questionable status in country are aggravations and breed resentment. These people are not encouraged to learn about America and American princibles, they are just here to fill a employement slot. The displaced citizens are hurt, and many become resentful, this resentment can turn against America. America and Capitalism become more resented, bitterly resented. American spirit becomes diluted, embittered generally.
(2) Unlike H1B's opening up of the labor market, no correspondent opening up of money, law, stock and corporation markets is made. By that I mean, we do not anywhere near as readily allow Gupta Singh, non-citizen visitor, to establish a bank, nor do we allow Indian companies to easily sell stock in the US. Rather they must go through many levels of registration -- magnitudes more difficult than an H1B.
Nor do we *ever* allow an Indian Barrister to come here and appear before a US court with all the privilege rights and access to our law system, equivalent to a US lawyer.
No, H1B creates a VERY unlevel playing field. One that has extraordinarily penalized US techinical, engineering and software workers, while favoring lawyers, corporate and stock market businessmen and brokers.
Thus H1B is bad for Capitalism -- true "Free Market" Capitalism, that is. There are a number of forms of capitalism you know. Forms of capitalism work in elite oligarchies, fascist states, and even in communist ones. We Americans are dedicated to Free Market capitalism -- mark the level playing field, lads!
I was laid off over a year ago from a small consultant company where I managed most of the consulting staff. A friend of mine (at a different company) was complaining to me the other day about the people in his office who sit around surfing the internet and reading the newspaper. I used to fire people for doing that.
Adding to this problem is that companies are hiring based on resume only--if you are not an exact fit to their requirements you are not even considered for the position. My feeling is that this will bite them in the butt later but, with the market the way it is, there's not much a job seeker can do to combat it. I know some great guys who are out of work who would *never* sit at their PC and surf the net on a company's dime.
Garbage. You've got to be able to do more than tie your own shoelaces for that.
Envy, my friend is not a good thing; I am sure your mother has told you.
Got married, bought over priced house, Overpriced according to whom, you? You do not even understand what price is.
Yes, salaries were inflated far beyond worth And who knows what is "worth?" You? YOu speak like a true socialist.
but, yes, priority should go to citizens. Why? That priority is paid for by all other citizens. Why do you impose on them higher prices? Who gives you that moral right?
If lives of engineers and other "geeks" is sooooo good, why don't these people go into those professions?
All this talk is pure envy.
I read a few months ago that the IT field is considered "too hard" by kids coming out of High School and considering an IT career. On the other hand, I've met young teens (12-15 years old) who think that you can just sit down and whip out some "awesome" game.
The fact is, if you are good, you can (or at least used to be able to) make good money doing it.
What made you worth 6 figures to begin with? Is there something unique about the "consulting" you did? How much are you making now?
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