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America's High-Tech Sweatshops (The exploitation of technology workers imported from India)
Businessweek ^ | 10/1/2009 | Steve Hamm and Moria Herbst

Posted on 10/07/2009 7:40:54 AM PDT by SeekAndFind

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To: algernonpj
Yes, yes, and yes

But you won't commit to any details on any of it, huh?

21 posted on 10/07/2009 8:24:57 AM PDT by TChris (There is no freedom without the possibility of failure.)
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To: algernonpj

... if US standards didn’t have the high taxes, onerous regulations, a healthy legal environment, etc.

Thanks for the correction!


22 posted on 10/07/2009 8:27:11 AM PDT by null and void (We are now in day 258 of our national holiday from reality. - 0bama really isn't one of US.)
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To: algernonpj
You are just so wrong on so many counts.

“Globalism, and various ‘free trade’ agreements have in reality functioned as a form of reverse protectionism”

Globalism did not impose environmental regulations and onerous taxes. US government did, and lead the rest of the world into it. And it backfired.

“Guest workers pay no or partial taxes. That alone puts American workers at a severe disadvantage.”

Thats BS. If H-1B visa holder is a resident, then income taxation is like any other US citizen. They have to pay both Social Security and Medicare taxes as part of their payroll.

“Workers off shore can live well on $10,000 per year.”

Actually they can live well on half that money. $10,000 a years is huge amount of money for any person.

23 posted on 10/07/2009 8:38:39 AM PDT by Rookie Cookie
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To: algernonpj

the H1B program needs to be shut down immediately! Why Republicans don’t campaign on that is beyond me.


24 posted on 10/07/2009 8:57:35 AM PDT by RC51
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To: algernonpj; PugetSoundSoldier
Were it not for the wage scale going down due to availability of surplus technology workers, US IT industry would have gone down the drains like the Auto industry paying ridiculous excessive wages for crap work protected by unions. US IT industry just cannot wish away the high numbers of engineers from India and other countries. Its gonna put pressure on the wage scale no matter how you try to shut foreign workers out....that is if US still wants to stay competitive and keep its IT industry rolling.
25 posted on 10/07/2009 8:58:24 AM PDT by Rookie Cookie
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To: SeekAndFind

How do you propose to keep the free market system alive when companies continue to cut workers? Without jobs these workers cannot buy the goods and services supplied by the free market. I believe it becomes a vicious cycle, that will eventualy spin out of control. The spin cycle may have already started.


26 posted on 10/07/2009 9:20:52 AM PDT by sean327 (All men are created equal, then some become Marines!)
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To: SeekAndFind

Sponsorship for the kind of work visa that allows foreign nationals to *(take)* professional-level *(jobs)* in the country.


27 posted on 10/07/2009 9:29:32 AM PDT by Vaduz
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To: RC51
“Why Republicans don’t campaign on that is beyond me.”

Maybe cuz they dont want IT industry to go down the American Auto industry path?

28 posted on 10/07/2009 9:31:35 AM PDT by Rookie Cookie
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To: The Sons of Liberty
I guess you’d rather have all our hight tech industry run overseas, if it saves you a nickel

My desire is immaterial; the reality is that there are a LOT of really sharp programmers around the world, and business is international.

I don’t see any other industry, or workers subjected to the same treatment,

Because what other industry has a barrier to entry that consists of a $200 computer?

Think about it - what mandates that you work in a factory. The tools and equipment and facilities! You can't distribute production of a car around the world. The parts, sure. But final assembly? Not a chance.

You cannot distribute production of crude oil to a dozen places - you pretty much have a physical well where you get the oil, and thus you need people and infrastructure at that location.

Software? With the Internet, if you're in the cubicle down the hall or in your home in Kiev, it doesn't matter. You need a dirt-cheap computer and a brain. That's it. Suddenly there is no need to have people here to do specific work with specific tools.

Software is the ultimate expression of intellectual property. It's ephemeral. It's bits. It's concepts. You don't even need physical copies like you did for books! Downloads are the standard (when was the last time you bought a physical CD or DVD of software, compared to the last time you downloaded a file or package). Software is developed not at a physical location, but in a person's mind.

THAT is what is changing the marketplace for programmers. The fact that the programmer does not have to be at a physical location, or use specific machinery or depend upon a specific company-built infrastructure. A computer, broadband connection, and a few free tools (e-mail, web browser, FTP client, compilers) and you can be productive in a matter of minutes, not days.

In light of this, companies are realizing that having a few really smart guys as direct hires - guys to dream up the great ideas and ride herd on the developers - is all that you need. The actual coders - brilliant ones around the world - can be anywhere. Tools are standardized, libraries are industry-wide. You can successfully integrate programmers in the Ukraine, India, and China with sharp system architects and program managers here in the US.

The demand for coders will always increase; people want custom software. But the salaries they command - here in the US - will continue to drop as things are internationalized and automated. Just look at what the CMS systems like Joomla and Drupal have done to the webdev market. You don't NEED to pay someone $40/hour to put content on your website, your secretary can take your marketing brochure and paste it herself.

Software will continue to decrease wages at high rates because, ultimately, there is "nothing" there - it's all algorithms executing on computers. There's nothing to stop the free-fall because there isn't any "floor" in terms of the cost to develop.

I even know one guy who contract-develops in Kiev from a local free Internet coffee house (he uses their computers for free, even). Literally for the price of a cup of coffee, he has a solid 4-5 hours of all the tools he needs to be a productive C++ programmer.

THAT is why the market is changing, not because business is out to screw the worker. It's the barrier to entry that does it, and if I can get great work from a guy in Seattle or a guy in Mumbai, well, why shouldn't I go for the lower price?

29 posted on 10/07/2009 9:48:18 AM PDT by PugetSoundSoldier (Indignation over the Sting of Truth is the Defense of the Indefensible)
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To: Rookie Cookie

Exactly. The fact is you can develop from anywhere in the world if you have an Internet connection. That’s not true of machining titanium, or stamping steel, or refining oil, or even growing pineapples. I can develop software - in Shanghai, Seattle, or Chaiyaphum without a problem.

The reason IT wages are dropping is not H1-Bs; it’s the fact there is essentially NO barrier to entry to becoming a developer, and being a productive one. Some time spent learning and a $200 computer and you have the tools needed to be productive.

As long as Joe Sixpack refuses to pay $1000 for the latest software title, it will get developed overseas.

In a perverse kind of way, it’s fun to talk to those who rail against H1-Bs and the dropping wages of IT workers, especially about open source. Most are huge open-source supporters, and most have pirated copies of software and/or music on their computers. They want the wages of IT kept high, but do not want to pay the prices (or even ANY price) to get the results. You can’t have both...


30 posted on 10/07/2009 9:55:09 AM PDT by PugetSoundSoldier (Indignation over the Sting of Truth is the Defense of the Indefensible)
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To: Rookie Cookie
Thats BS. If H-1B visa holder is a resident, then income taxation is like any other US citizen. They have to pay both Social Security and Medicare taxes as part of their payroll.

A H-1B is by definition a guest worker temporarily residing the US. One of the major myths propagated by the MSM is that they carry a full load of taxes. The is not true. L-1's who were rapidly our pacing H-1B's in number over that last several years, pay no taxes period. H-1Bs tax rate depends upon how and where they are paid. If a H-1B is paid a minimal living allowance in the US and the balance of their $$ in India, the minimal living allowance is what they are taxed on.
31 posted on 10/07/2009 10:14:23 AM PDT by algernonpj (He who pays the piper . . .)
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To: Rookie Cookie
Globalism did not impose environmental regulations and onerous taxes. US government did, and lead the rest of the world into it. And it backfired.

FYI I did not write that globalism imposed the onerous regulations, taxes!

The same government that imposed these regulations, taxes, etc. fast tracked 'free trade' agreements that included changes to our immigration laws. That is why globalism and 'free trade' agreements have functioned as a form of 'reverse protectionism'.

And yes, that same government lead the rest of the world into globalism.
32 posted on 10/07/2009 10:25:04 AM PDT by algernonpj (He who pays the piper . . .)
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To: PugetSoundSoldier
if you're in the cubicle down the hall or in your home in Kiev, it doesn't matter.

Yes, it DOES matter. When American IT jobs are given to those abroad, or those abroad are shipped here as a cut-rate labor supply, it discourages anyone here from going into the field, and also discourages those already working in it from continuing. This may be OK, until we need experienced, home-grown talent to work on sensitive defense -related projects, and all we have are burger flippers.

Congress justifies peddling American jobs around the world by saying that there are not enough qualified Americans to do them. It sounds good and provides political cover, but is not true and eventually is self-fulfilling. This is just like saying that the mexicans take only the jobs Americans won't do.

33 posted on 10/07/2009 10:40:55 AM PDT by The Sons of Liberty (FUBO - When 0bama Fails, Freedom Prevails!)
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To: PugetSoundSoldier
The fact is you can develop from anywhere in the world if you have an Internet connection. That’s not true of machining titanium, or stamping steel, or refining oil, or even growing pineapples.

But all we need are guest workers or illegal aliens to machine titanium stamp steel, refine oil, or grow food.

H-1B visas are not confined to IT; job titles include, but are not restricted to: MAINTENANCE REPAIRER, SHOP FOREMAN, ADVERTISING-PROMOTION MANAGER, DENTAL TECHNICIAN, HEAD DIRECTIONAL RIG OPERATOR, ELECTROPLATING SPECIALIST, CHEF - KITCHENMANAGER, DIRECTOR OF PARALEGAL PROGRAM, MECHANICAL ENGINEER, HIGH FASHION MODEL, CHILD CARE TEACHER, REGISTERED NURSE, COLORIST, PRESCHOOL TEACHER, WATCH REPAIR, YACHT STEWARDESS, URBAN AND REGIONAL PLANNER, TEACHER, RESEARCH WRITER,MECHANIC, GREENHOUSE CROP GROWER, ELECTRICAL ENGINEER, DIESEL MECHANIC, SOCIAL WORKER, SOUND ENGINEER, LOAN OFFICER, MECHANICAL TECHNICIAN, PHARMACIST, ORTHODONTICLABORATORYTECHNOLO, HUMAN RESOURCE MANAGER, TENNIS DIRECTOR, GEMOLOGIST/DIAMOND GRADER.

These job titles were copy and pasted from H-1B records for 2005; hence the capital letters. I used 2005 because the data base of record was handy. Only ~ 1/4 of the H-1B's were for IT job codes.
34 posted on 10/07/2009 11:16:45 AM PDT by algernonpj (He who pays the piper . . .)
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To: algernonpj; YankeeReb; RC51; sean327; Rookie Cookie

See post #34.

Also FYI, during the current job situation, 125,000+ new LEGAL workers are coming into the country each month!


35 posted on 10/07/2009 11:22:56 AM PDT by algernonpj (He who pays the piper . . .)
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To: algernonpj
“One of the major myths propagated by the MSM is that they carry a full load of taxes.”

Exactly what myths are those? Cuz a lot of the nonsense you are posting about H1b taxation are myths in themselves. For H1-Bs there are only two categories Resident Aliens or Non Resident. If he/she is a resident then income taxation is like any other USA person and must pay taxes on their worldwide income, no exception. A non resident alien can claim benefit if there is a treaty between US and that country. The reason being that he person is not a US resident and is using minimal social/infrastructural services or benefits provided by US government and also to avoid double taxation from the home country.

What you are saying about minimum living allowance and sent overseas are urban legends. Never happens.Period. There is no such thing as minimal allowance. There is a minimum salary cap on how much you HAVE TO pay an H-1B visa resident and so what goes to the government as income tax also has a minimum cap. End of story.

Same applies to L1s. L1 visa holders are required to pay
federal income taxes, provided they meet the “substantial presence test” that determines if the person is a resident alien. L1s also have to pay social security and Medicare. There is no arguing about this. There is no way a foreign resident can legally work full time in the US and not have to pay taxes whatever the visa. I dunno where you get your facts from but most of them are malicious and very misleading.

36 posted on 10/07/2009 12:35:02 PM PDT by Rookie Cookie
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To: algernonpj
Globalism totally worked in US favor when it was only a way street. That was the time when US was pushing for global trade agreements worldwide. Those days are gone. Rise of Asian markets have changed the rules and skewed the playing field. Its not gonna be a one way street any more. America's current alternatives are to move along on the two way street like everyone else or get off the high way and shut itself out. The former option is still way better the the latter.
37 posted on 10/07/2009 12:50:54 PM PDT by Rookie Cookie
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To: Rookie Cookie
There is no way a foreign resident can legally work full time in the US and not have to pay taxes whatever the visa.

What is the source of your information?
38 posted on 10/08/2009 4:54:02 AM PDT by algernonpj (He who pays the piper . . .)
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To: algernonpj

Same question back at you.


39 posted on 10/08/2009 7:53:47 AM PDT by Rookie Cookie
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To: algernonpj

You really need to be doing YOUR OWN research before you spew.

http://taxipay.blogspot.com/2008/08/us-visas.html

http://www.irs.gov/pub/irs-pdf/p519.pdf

http://www.intersticeconsulting.com/documents/US_India_Personal_Tax.pdf

http://en.wikipedia.org/wiki/H-1B_visa#Income_taxation_status_of_H-1B_workers

http://www.irs.gov/businesses/small/international/article/0,,id=188413,00.html
http://www.irs.gov/businesses/small/international/article/0,,id=129428,00.html
http://www.irs.gov/taxtopics/tc851.html

....And you are welcome!

Your BS sounded so much like DU propaganda...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=104x1172663

Rings a bell?


40 posted on 10/08/2009 8:03:18 AM PDT by Rookie Cookie
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