21 October 2009

Sri Lankan Immigrant Leads Insider Trading Scam

Timothy Prickett Morgan writes:

According to a report from the Associated Press, six people were arrested today as part of an insider trading case, including Bob Moffat, senior vice president and general manager of IBM’s Systems and Technology Group; Rajiv Goel, director of strategic investments at Intel Capital; Anil Kumar, a director at management consultancy McKinsey & Co; and Raj Rajaratnam, the founder of the $7bn Galleon Group hedge fund.

The AP reports that these executives (as well as two others who were not named) had passed insider information concerning Google, Polycom, and Hilton Hotels to Rajaratnam, who then executed trades that helped Galleon Technology Funds to get more than $20m in profits between January and July 2007. A report from Reuters says that trades took place at Intel Capital as well and that insider information was used in the trading of stocks for IBM, Sun Microsystems, and Advanced Micro Devices.

[IBM, Intel execs arrested over alleged insider trading, October, 16, 2009]

Rajaratnam is an immigrant from Sri Lanka. Discussion by Patrick Cleburne here.

3 September 2009

Indian Press on H-1b/Outsourcing

What is important to get is this is being written by an Indian in an Indian publication:

Pulkit Sharma writes

An Indian IT/BPO company gets an outsourcing contract. One element of such a contract is to train Indians to run the show, the other element is to ‘let go’ Americans and Europeans working in that particular IT/BPO companies. Many Indian managers use psychological warfare and dirty tactics to drum westerners out of the company that has outsourced business to them. Western tech employees cost more and have the confidence to speak their minds. Indian workers are more malleable.[Outsourcing victim speaks, September 2, 2009]

Machiavelli once said that once you start a process of oppression, it must be followed through on, a leader who lets up once it starts must expect serious retribution. In this case, I think the problems with immigration policy started much earlier. The US economy has become steadily less egalitarian since the 1960’s immigration expansion-and the wages of men have stagnated.

Indians have become a highly visible scapegoat for a much larger, older phenomena that few of them understand well. I think the pent up anger and frustration here is very, very deep-and involves a lot more than H-1b and outsourcing.

16 August 2009

Income Inequality: Mexico Assimilating the United States

Gini Coefficient Trends

Sustainable Middle Class has an interesting article on how the US Gini Coefficient (which measures inequality of income) is moving towards that of Mexico. The basically suggests the US rich are becoming richer and the US poor are becoming poorer. The US Department of Labor tend to understate the case here because they are looking at income-and wealth or assets tend to be more concentrated than income.

Mexico has actually become somewhat less unequal since the 1970’s.
International Gini Coefficient Comparison

US immigration and trade policies have likely been a major factor contributing in making Mexico more equal. What these policies really did was prop up the current elites in Mexico and enable changes without dramatic shifts in economic or political power in Mexico. Of course, there were enormous costs to working Americans. If present trends continue, it looks like Mexico will become just as equal as the US in terms of income sometime the next 10 years.

10 June 2009

Meritocracy, Nepotism and H-1B

kdawson at slashdot.org quotes The Narrative Fallacy:

“With about 4,200 people participating in a US National Security Agency-supported international competition on everything from writing algorithms to designing components, 20 of the 70 finalists were from China, 10 from Russia, and 2 from the US. China’s showing in the finals was helped by its large number of entrants, 894. India followed at 705, but none of its programmers was a finalist. Russia had 380 participants; the United States, 234;
[China Dominates In NSA-Backed Coding Contest, 6/9/2009]

There is a lot more to producing real technological products than the types of things a programming test can measure.

Still, there is a question of why, with these kinds of results around, we see ads like this:

On a project for our direct client we are looking for Sr. Engineer/ Engineer PERL/ SQL/ Java coders . Candidate should have 6+ years experience . Need either US citizens or Indian H1 resources based in NJ/ NY on contract .

I’ve heard from reliable sources about managers at major formerly US corporations telling folks that they would only receive funding for a project if they agreed to limit their hiring to specific employment agencies from India. One man literally had to threaten to walk of a job to hire a Ph.D. from Harvard. I guess at this point, some of these companies are getting PC and hiring US citizens for window dressing.

The H-1b program has strongly discouraged US workers from entering technological professions because the program offers foreign workers US immigration rights as an unpaid form of corporate welfare. Even when that program does attract talented workers, those workers often have little loyalty to the US or identification with it people, create security problems because they come from countries where background checks can’t even be done-and bring with them practices like extreme ethnic nepotism that is in now way meritocratic.

23 May 2009

Health Care and Immigration

Ricardo Alonso-Zaldivar writes at AP:

Illegal immigrants won’t be entitled to medical insurance under the health legislation Congress is working on, a leading lawmaker said Thursday.

Sen. Max Baucus, D-Mont., said the health overhaul would cover nearly everyone — 94 percent to 96 percent of the population — but not undocumented workers. Baucus is chairman of the Finance Committee, which has taken the lead in drafting the sweeping legislation.

“We aren’t going to cover undocumented workers because that’s too politically explosive,” Baucus said during a session with reporters, in which he previewed legislation he expects to introduce by mid-June.[Senator: No health insurance for illegal migrants, May 22, 2009]

I would suggest immigration patriots counter with an amendment that would put this issue in the proper framework. Illegal aliens-and for that matter visitors to the US could all be covered by Universal Health Care. The issue is how this is paid for. The insurance of illegal workers should be paid 100% by illegal employers since so much of the wages of illegal workers are paid “under the table”. This could be done by raising fines on immigration violations to whatever level is necessary to pay for this health care.

Yes, having true universal health care would be a draw to illegal immigration–but passing the long term health costs of illegal workers onto illegal employers would drive many of those businesses under. The net effect would be fewer illegal workers because there would be fewer jobs drawing them.

What immigration patriots need to make sure:if the US is destined for universal health care, there is absolutely no tendency of US citizens to subsidize non-citizens as part of the deal. Real universal health care in the US would remove much of the financial problems faced today in areas like emergency care.

I believe in being tough on illegal immigration. However, I don’t think that when dragging someone of a car wreck or delivering medical care for a gunshot wound, is the time to be checking ID’s. If we have a major pandemic in the US, it will not respect immigration status–and having any uncovered population is dangerous to the rest of us. We need to make sure is that all those present in the US are covered in some fashion by a self-funding policy. Legal visitors might be covered with a policy that is reciprocal to what US citizens receive in those countries. There are US citizens covered by French and British health care right now–it would only be reciprocal for the US to do something similar for French and British visitors to the US. However, health care for visitors to the US from countries that provide no health care to US citizens could be paid for by mandatory short-term insurance obtained by those getting a visa.

What Baucus is effectively proposing by avoiding the issue of health care for illegal workers is that American workers continue to indirectly subsidize much of the health care of illegal workers and visitors from countries without universal health care. Immigration patriots need to attack that issue head on.

Airline Mechanics Who Can’t Read English

Byron Harris at WFAA-TV writes:

There is also evidence that hundreds of mechanics with questionable licenses are working on aircraft in Texas.

Now there is evidence of repair facilities hiring low-wage mechanics who can’t read English.

Twenty-one people were killed when U.S. Airways Express Flight 5481 crashed in Charlotte, North Carolina in 2003. The plane went wildly out of control on takeoff.

One reason for the crash, investigators found, was that mechanics incorrectly connected the cables to some of the plane’s control surfaces in the repair shop. The FAA was cited for improper oversight of the repair process.

Repairing airplanes is a complicated business. Airplanes have many manuals. Typically, when mechanics repair a part, they open the manual, consult the book, and make the repair step-by-step, as if it were a recipe book.

They make a list of every action they take, so the next person to fix the plane (as well as the people who fly it) will know exactly what has been done.

If mechanics don’t speak English, the international language of aviation, they can’t read the manual and they can’t record their activities.[News 8 Investigates: Airline mechanics who can't read English, May 16, 2009]

One fundamental question:why should immigrants from countries in which a background check cannot reliably be done be involved managing critical infrastructure in the US? US job growth has not be keeping up with natural increase of our population in recent years. If skilled jobs can’t be filled reliably, this suggests a structural problem that should be addressed, not brushed under the carpet by opening the floodgates.

18 April 2009

Immigrants and Rape in Norway

A reader sent this to me:

Rolleiv Solholm writes in the Norway Post:

The Oslo Police have over the past three years investigated 41 cases of aggravated sexual assault, which resulted in rape. All of them were carried out by non-western immigrants to Norway.
……….
Most of the rapists have a Kurdish or African background, NRK reports.

[Immigrants behind most cases of aggravated sexual assault , Apr. 17, 2009]

It would clearly make sense for all immigrants to developed countries to be required to to purchase bonds that would indemnify victims of their criminal activities. I suspect the reported rapes are only the tip of a rather large iceberg.

Rape is not the act of an immigrant that loves their new homeland-but someone who simply doesn’t belong there in the first place. Norway is a wealthy country and could easily afford to generous settlements to resettle those who want to leave for any reason before tragedies like this happen.

10 April 2009

Pro-Employer Heritage Foundation Report Shoots GOP in Foot

Carrie’s Nation has a rather decent blog on a recent employers’ infomercial coming out of the Heritage Foundation.

“One need only look at the authoritative sources at the end of the article (Melinda Gates’ newspaper The Washington Post, Stuart Anderson aka National Foundation for American Policy, and another Heritage Foundation study) to see how much work was put into this “web memo”.[(yawn) Another "Study" Concludes We Need Higher H-1B Visa Limits , April 9, 2009]

The “study” is called “Help the Economy and Federal Deficit by Raising H-1B Caps.” Some Republicans like Grassley are trying address the H-1b issue-and face uphill re-election battles. Heritage seems intent on helping Grassley lose that fight.

4 April 2009

Sanders Staffer Shows Backbone on Banks’ H-1b Visa Use!

Warren Gunnels(Senior Aide to Sen. Sanders) asks:

“Why would the supporters of increasing H-1B visas be so concerned about our amendment? At a time when the unemployment rate is soaring, do you really think there aren’t enough intelligent Americans to fill these jobs?” [Work-Visa Numbers Get Squishy -- and Get Played, March 31, 2009]

US immigration policies often had very different effects than advocates promised.

Theoretically, we could look at the effects of corporate sponsored immigration on companies. Advocates of corporate sponsored immigration constructed policies with such poor reporting that isn’t possible. We just don’t know precisely how many guest worker visas are in use in many companies–or the cumulative impact of related chain migration. Corporate immigration advocates want investors and customers to have the illusion they are the same companies they always were-even when they replace their American workforce.

Guest worker visas aren’t just cheaper. Corporate management perceives guest workers as far more easily controlled than Americans. Criminal corporations like Enron prefer guest workers. Heavy guest worker use is sometimes motivated by ethnic nepotism in companies managed by co-nationals of guest workers.

Guest worker use can be very addictive. Although guest workers may be a small portion of overall employment, they are often used in for jobs utterly essential for day to day operations–and security. Many companies have lost the trust of US tech workers–and even their foreign workers with an option to work elsewhere.

They depend utterly on a constant flow of indentured workers. These guest workers actually have a knife at the throat of their supposed corporate masters. America can clearly thrive without guest worker visas, but many managers and major companies cannot. America may well be far better off without those companies and managers.

3 April 2009

Shooting in New York Immigrant Aid Center

My heart goes out to the all families affected by the recent shooting. James Fulford has pointed out, the shooter was an East Asian male. Mass immigration and the accompanying financial crisis have created an inherently volatile situation in the US. Expansion of H-1b and related visas has greatly affected East Asian males in the US–literally cutting off the one major legitimate route to upward mobility many see followed by others they can identify with. I have known many East Asian co-workers in Silicon Valley. The pressures many of them are under in the US are unbearable. For both their sake and ours the US should be far more selective accepting immigrants, more careful in assuring immigrants legally admitted can expect a decent life and provide greater aid for those who find they really aren’t cut out for life in the US and need to return home. Welcoming someone into a life that drives them to suicide and murder is not doing anyone any favor.