Bush urges US Congress to lift H-1B visa limit

PTI ^ | February 03, 2006 | Sridhar Krishnaswami

[Tyche]

Making a strong pitch for America to stay competitive in the face of emerging economies such as India and China, President George W Bush has urged the Congress to raise the number of H-1B visas that allow companies to hire foreign workers for scientific and high tech jobs.

"Congress needs to understand that nations like India, China, Japan, Korea and Canada all offer tax incentives that are permanent. In other words, we live in a competitive world. We want to be the leader in this world," Bush said in a speech in Minnesota on Thursday.

To fill vacant jobs in the US, Bush urged the Congress to lift current limit on H-1B visas that allow foreign workers to get jobs in the United States. The Congress in 2005 capped at 65,000 the number of H-1B visas, a third of the 195,000 allowed during the technology boom.

"I think it's a mistake not to encourage more really bright folks who can fill the jobs that are having trouble being filled here in America, to limit their number. So I call upon Congress to be realistic and reasonable and raise that cap," Bush said, but did not say by how much he wanted the limit lifted.

He said that one part of the agenda to stay competitive was to study math and science, a theme he touched on in his State of the Union Address on Tuesday.

"It's one thing to research, but if you don't have somebody in that lab, well… And so I got some ideas for the Congress to consider. The first is to emphasize math and science early, and to make sure that the courses are rigorous enough that our children can compete globally," Bush said in a speech at the 3M Corporation.

He said there are more high-tech jobs in America today than people available to fill them. "So what do we do about that? And the reason it's important -- and the American citizen has got to understand it's important -- is if we don't do something about how to fill those high-tech jobs here, they'll go somewhere else where somebody can do the job."

"There are some who say, we can't worry about competition. It doesn't matter, it's here. It's a real aspect of the world in which we live," he said.

"And so one way to deal with this problem, and probably the most effective way, is to recognize that there's a lot of bright engineers and chemists and physicists from other lands that are either educated here, or received an education elsewhere but want to work here. And they come here under a programme called H1B visas," Bush said.

He said America should not fear competition. "It's important for us not to lose our confidence in changing times. It's important for us not to fear competition but welcome it."

Senior administration officials noted that the number of H-1B visas has fallen to 65,000 which in their estimation was 'too low' and that it was imperative 'to bump that up.'

". . . some of reports have called for increases of 10,000; others between 20,000 and 40,000. So there is a number of options on the table to be considered. But we'll work with Congress on that," said Claude Allen, assistant to the President for domestic policy.

[Nowhere Man]

No, because another good measure of standard of living is determined by the ability to aquire material necessities/wants with cash/check/debit derived from wages & other income. An ever-increasing percentage of the US population, to maintain the same standard of living, has to rely more and more on the use of credit cards, lines of credit/home-equity loans, home refi's, pay day loans etc... In other words they have to bury themselves in debt they'll never repay. In 1955 the average wage-earner could save up enough money in 5 years or less to buy a brand-new American car or truck outright with cash. Try that today. The problem is that most of what people look at to determine "standard of living" is what car you're driving, how up to date your home electronics are, and how big your house is...not HOW you obtained them. Have you ever seen that commercial with the guy bragging about all that he has, and then telling you that: "I'm in debt up to my eyeballs!" That commercial is very easily representive of America as a whole. On the surface his life seems grand, but he's on an ever thinning string towards financial collapse. The United States is steadily more and more in that condition through free-trade policies. In 20 years, if we keep on this penny-wise pound-foolish path, China's going to have a very big set of scissors to cut that string with.

Hmmm, that reminds me, maybe a little off the beam, but I like to collect old magazines (I'm a Victorian/Edwardian literature junky), some from 100+ years ago, there were stories where it took a married couple 5 years to save for a house and some of those houses were fairly spacious. Today, you'd be up to "your eyeballs" in debt unless you were a rockstar or something. BTW, I actually knew someone like that guy in the commercial, he had a huge house, a Lincoln Navigator and so on and he really had to cut back. I know there are times people ask for it but our personal debt problem is a huge problem.

[Toddsterpatriot]

The US has shrunk down to just one DRAM manufacturer...and it was apparently able to collude with the major foreign makers.

By your own criteria, no US manufacturers, this is a bad example. Why not use VCRs? No US manufacturers of those. Prices going up or down the last 5 years?

[lewislynn]

some of reports have called for increases of 10,000; others between 20,000 and 40,000. So there is a number of options on the table to be considered. But we'll work with Congress on that," said Claude Allen, assistant to the President for domestic policy.

H1 B's and "domestic policy" seems like a contradiction.

[Nowhere Man]

LOL! You hit the nail on the head! For a lot of these guys, freetrade is like some kind of fundementalist religion, instead of a theory of how markets behave efficiently when there isn't any "fine print" involved.

Instead of considering a system of completely Free Trade as a goal that might be achieved sometime down the road (like "Free Energy, World Peace, eradication of all human disease, and interplanetary space travel), they insist that we all grab a glass of Kool-Aide and chant the vitues of Free Trade with evangelical fervor.

That's my take on it, it is like a religion and way of life to them, reminds me of the Ferengi ("Greetings Hooman!!") from Star Trek, the Next Generation where they had their Rules of Aquistion and the "Grand Nagus." At least the Revered Ike back in the 1970's was more honest about his religion worshipping money or at least the aquisition of money was a huge part of it.

[Nowhere Man]

I agree when I was in grad school I was shocked to find pout what a 'money maker' foreigners were for the school. Another thing to do is to stop US universities from treating foreign students as a form of 'indentured servants' by rigorously enforcing visas. Let me explain ,Professors will often drag out the graduate of a 'producing' to milk research & papers out of him or her. Foreign students are caught between their visa requirements, desire to graduate & desired to stay here. However because visa enforcement is so lax professors can exploit that and drag out the foreign students stay. The foreign student is caught by a set of 'golden handcuffs' he likes it here but would like to graduate. So the graduate 'plum' is dangling out to get the students cooperation in dragging out his research and hence the students graduation. If student visa stays were rigorously enforced that incentive would dry up.
Also remember at state universities the state taxpayer foots the majority of the American students bill. All breaks, incentives, etc. SHOULD GO TO THE AMERICAN STUDENT not to the foreign student.

I think we need to revamp our education system. First cut the politically correct BS out of it. We need some sort of aid for students who show an aptitude for sciences and engineering to help pay for part or all of their educational costs and tag that aid to perormance meaning that if they do poorly, no more aid. It would be like how the GI Bill funded soldier's education after World War II. The rest of the world does this in one for or another and they turn out bright students and in order to keep up, we must start to look at ideas that do work. Instead we are cutting back on student loans. Maybe the idea too i requiresome equity in return for the state paid education or loan repayment, maybe a stint in the Armed Forces or some civilian equivalent such as a newly minted doctor serving in a rural area for example. I'm just putting this out for ideas but sometimes we need to study what other nations do and tweak it to our system. If we are to compete, as the free traders say, then we must fight like they do. We need another Eisenhower who saw the need to beef up the education sytem after he saw the Soviets launch Sputnik.

[neutronsgalore]

"You'd say yes, but do you have any proof? Page 110 of 124 shows our net worth has increased over 25% since 2001."

When you say "our net worth" are you talking about the entire US population? Of which increases in net worth of the top 5-10% can be vastly higher than decreases in the net worth of the remaining 90-95%, skewing the data. So you can have 10% of the population gain in net worth, the rest decrease, and still get the same rosy picture.

[Toddsterpatriot]

When you say "our net worth" are you talking about the entire US population?

Of course I am.

Of which increases in net worth of the top 5-10% can be vastly higher than decreases in the net worth of the remaining 90-95%, skewing the data. So you can have 10% of the population gain in net worth, the rest decrease, and still get the same rosy picture.

Great, I proved that national assets have increased faster than national liabilities. Now all you need to do is prove your point. Maybe research median household net worth. Good luck.

[1rudeboy]

That's my take on it, it is like a religion and way of life to them, reminds me of the Ferengi ("Greetings Hooman!!") from Star Trek, the Next Generation where they had their Rules of Aquistion and the "Grand Nagus." At least the Revered Ike back in the 1970's was more honest about his religion worshipping money or at least the aquisition of money was a huge part of it.

Funny, that with all your talk of "religion," you still manage to be so sanctimonious. In any case, the simple(r) explanation is that most conservatives reject the notion that you know better what to do with their money than they themselves.

[Paul Ross]

By your own criteria, no US manufacturers, this is a bad example.

No. This proves the motives you deny, and the method of operation. The prerequisite of zero U.S. industry was not the criteria. Micron is too small to prevent the foreigners from having their way, and clearly would gladly go along with their gouging.

We only have the one small manufacturer...Micron Technology. But for that one, we wouldn't even have U.S. FTC jurisdiction to say anything about the price fixing that the foreigners can easily agree to amongst themselves. And once Micron is gone...well, they certainly seem inclined to do just this kind of thing, eh? Anyways, economic history is littered with this behavior. It is based on something you seem to have forgotten, called self-interest. Don't expect virtue when U.S. based competition can't enforce it.

Your whole creed has been to issue "philosophical" checks your wallet can't back up.

[Toddsterpatriot]

No. This proves the motives you deny, and the method of operation.

This proves that bad companies can do bad things. Regardless of the country they are in.

The prerequisite of zero U.S. industry was not the criteria.

That's not what you said : It is well known that once the predator nations have finally exterminated U.S. industrial production...that prices will then drastically go up. That is an empirically well demonstrated phenomenon that is axiomatic. There is a lengthy, lengthy U.S. experience with this happening.

You said the US produces large-screen projection model TVs. Have these predator nations gouged us on the televisions we no longer produce? Why not?

Where is the lengthy, lengthy U.S. experience with this happening? One imperfect example doesn't sound lengthy, lengthy.

[Wurlitzer]

"Once again, he panders to the Congress to get cheap labor for business, while fully qualified Americans are looking for those jobs."

I'm one of them! The Internet is just full of those with very limited programming abilities offering to do programming at a price not feasible in this country given the taxes, health care costs, government regulations.......

During the Y2K fiasco, my former company wanted to "save" money and contracted with a firm in India to handle most of the transactions. Any money "saved" was lost in fixing all the bugs in logic and errors due to language issues.

[The Sons of Liberty]

This is part of his "Guest Worker" program. Never mind that people in the IT field are put out of work by it.

[Paul Ross]

That's not what you said

And being reduced to ONE company is close enough to extermination to prove the vulnerability of the U.S. to the forces of foreign self interest unencumbered by competition.

And it was a perfectly good example of the U.S. experience with foreign trade, and its continuing reality, and what used to be routinely taught in most U.S. history classes, right up until the late 70's.

[Mase]

So you can have 10% of the population gain in net worth, the rest decrease, and still get the same rosy picture.

"Maybe research median household net worth."

From conservative economist Stephen Moore:

"Turning from income to wealth, data from the Fed provide further confirmation of family economic gains for the middle class. The total net worth of Americans rose to just shy of $50 trillion in 2004. The Fed has not yet calculated the median household wealth for 2004, but we estimated that number by taking the average ratio of mean wealth to median family wealth over the past 10 years. This yields an estimate of $105,000 in 2004. This is almost double the median family-wealth level of 1983 and nearly triple the level of 1962. Until very recently, for a family to attain six figures of wealth was considered quite rich. Despite all of the groans about the over-indebtedness of American households, the new Federal Reserve Board data suggest that the family balance sheet is not highly levered. The ratio of debt to assets is only 18.3%."

WSJ: The Great American Dream Machine (Subscription Required)

Looks like the rising tide is lifting all boats. In 1980, only 25% of Americans were invested in the stock market. Today, more than 52% of Americans are invested. Considering the large increase in population since 1980, and the fact the market doubles in value every 7-8 years, it is impossible to deny that the incredible increase in our net worth has benefited all quintiles of our population.

[neutronsgalore]

"The ratio of debt to assets is only 18.3%."

And the 18.3% includes what is owed on mortgages, home-equity loans, and HELOCs?

[Mase]

And the 18.3% includes what is owed on mortgages, home-equity loans, and HELOCs?

Yes, as long as the HELOC has been drawn on.

I believe Moore is using the data from the Fed Funds Report.

Fed Funds: page 110

[neutronsgalore]

"I believe Moore is using the data from the Fed Funds Report."

Looking at the data it still looks like a considerable amount of the debt to asset ratio is factoring in those above the middle class annual income bracket, top end of which I believe was last listed at $94k. If it accurately represents only the middle class then I must be dead-center in an abnormally high group of very unlucky people as my own debt-to-asset ratio is 86% and I can't find a single soul (except for a couple near retirement geezers who are SERIOUS penny-pinchers) that are doing any better than 63%.

[Mase]

Moore's figure of 18.3% is the average for all American households. Lower income earners will, most likely, have higher debt-to-asset ratios than those in the higher brackets. However, according to the fed report, the average American household has 57% equity in their home. That's an impressive figure.

52% or more of Americans are now invested in the stock market so when all those IRA's, 401k's and other instruments are added to the mix, it's not hard for me to believe that his numbers are accurate. Moore would never make this kind of claim in the WSJ unless he had done his homework.

Hopefully, with a debt-to-asset ratio of 86%, you are still young and will reduce that percentage as you get older. It will be pretty hard for these folks you know to ever retire if they don't have a plan for growing their assets much faster than their debt. I have more debt now than at any other time in my life, but my assets have grown many times faster. This is true for most Americans, which is why our household net worth hit an all time high of $51 trillion last year. This is more than double what it was in 1994 and only 21% of this wealth comes from homeowner equity. The average household owns a lot of liquid assets.

[neutronsgalore]

"Moore's figure of 18.3% is the average for all American households."

Which is why I don't trust it as a reflection of how the middle-class is doing. What I've been trying to find is how much assets and debt is among those earning between $45k and $94k a year in monthly salary/hourly wages.

"Hopefully, with a debt-to-asset ratio of 86%, you are still young and will reduce that percentage as you get older."...."However, according to the fed report, the average American household has 57% equity in their home."

Assuming the housing market doesn't undergo a dot-com style bubble-burst and wipe out most, if not all, of the equity.

[neutronsgalore]

"I claimed we manufacture assemble from foreign components and re-export more than ever."