Date: Sun, 7 Sep 2008 21:51:12 -0700
From: Norm Matloff <matloff@cs.ucdavis.edu>
To: Norm Matloff <matloff@laura.cs.ucdavis.edu>
Subject: Obama on the "H-2B" visa

To: H-1B/L-1/offshoring e-newsletter

As we all know, politicians are good at making statements that are
carefully crafted to give the impression that they mean X when they
actually mean Y.  The statements are designed to be technically true but
to leave the politician a way out that isn't noticeable to the average
person, who may be too trusting to read the fine print, or who may lack
the background knowledge needed to see that the politician is hedging,
big time.  Just last week, I illustrated this in the context of
remarks Barack Obama had made on tech job offshoring; see
http://heather.cs.ucdavis.edu/Archive/ObamaOnOffshoring.txt

Then on Friday Obama brought up the issue of H-1B.  He was a bit
confused, and referred to it as "H-2B," but it's clear that he meant
H-1B.  Again, as seen in the enclosed articles below from Rediff.com, an
Indian news site, and www.techcrunch.com, a U.S. tech industry news
site, Obama seems to be saying the right things:  H-1B shouldn't be used
unless there is a shortage of workers, H-1B shouldn't be used to
undercut U.S. wages and so on.  He even alludes to the fact that
employers overemphasize specialized skill sets that could easily be
learned on the job by someone who has general experience in the given
field. 

But if you look at Obama's remarks closely, you'll see that he is
actually following the industry party line:  He says we have a shortage
of PhDs and a shortage of tech workers; he says that if only we got more
minorities into these fields, we wouldn't have a shortage; he says that
we need an H-1B cap increase as a stopgap measure, while the education
system ramps to produce more workers in the fields currently
experiencing a shortage; he implies that abuses of H-1B are due to
mainly to insufficient enforcement; etc.

Every one of these claims is false and has been refuted, but my point
now is that every single one of these claims has been used by the
industry lobbyists repeatedly ever since 1998.  In short, Obama is using
the industry's language, probably obtaining such language from the
industry--one of his advisers is Wade Randlett, a Silicon Valley
industry trade organization's liaison to the Democratic Party-- to sound
reformist when in fact he means the opposite.  

In addition to the two articles enclosed below (I'm enclosing the full
text of both, including the second, as it's important to note Obama's
comments about education in the latter, which continue his theme that we
have a tech labor shortage), I'm enclosing the text of a letter to a
constituent.  There you will see the above points in more detail.  Note
in particular this passage:

#  I support the efforts of the Departments of Labor and Homeland Security
#  to ensure that employers and H-1B applicants follow the intent and
#  restrictions of the program. For example, it is incumbent upon the
#  Department of Labor to monitor the wages being paid to H-1B visa holders
#  and enforce the H-1B program's provision that wages reflect the current
#  job market.

There it is, the industry lobbyists' favorite diversionary tactic, to
make it seem that the problems with H-1B are primarily lack of
enforcement.  As readers of this e-newsletter know well, the problems
lie in the huge loopholes in the law, not in lack of enforcement...but
it sounds plausible, and very few people know they're getting
hoodwinked, victimized by a head fake as in sports.  By bringing up this
red herring of enforcement, Congress goes scot free, not having to fix
the real problem, which is the law itself.

I should point out that even Obama may be one of those being deceived.
Maybe he's just naive, falling victim to the heroic image the press
(with help from the lobbyists) has presented of the U.S. tech industry.
On the other hand, Obama is good friends with, and has been strongly
promoted by, the other senator from Illinois, Dick Durbin.  The H-1B
reform bill introduced by Sens. Durbin and Grassley is excellent, and
these two men know, probably better than anyone else in the Senate, that
the industry lobbyists' claims are bogus.  (I keep coming back to
Grassley's statement, "Nobody should be fooled" by the industry
lobbyists on H-1B.)  One must assume that Durbin has explained to Obama
the truth about H-1B.

In any case, the bottom line is that wittingly or not, Obama's speaking
for the industry.  And if McCain brings up H-1B or is asked, you'll find
that he'll use the same predictable language.

Norm

http://www.rediff.com/cms/print.jsp?docpath=//money/2008/sep/06visa.htm

Obama for streamlining H2B visa process
Sridhar Krishnaswami in Washington | PTI | September 06, 2008 | 16:08
IST

Driving home the point that he is for creating jobs in the US,
Democratic Presidential nominee Barack Obama has favoured streamlining
the process for the high-skilled H2B visas for Indians and other
foreigners to make sure that employers were not "gaming" the system.

"For those who don't know, the H2B visa programme is the programme
whereby people with specialised skills, foreign nationals with
specialised skils, are supposed to be able to come in and be sponsored
by their employer. That's the idea," he said at a campaign event in
Duryea, Pennsylvania on Friday.

Noting that there are some "highly specialised" areas meant to be
covered under it, the Illinois Senator said: "Let's say, you know, you
need a nuclear physicist in a particular area, and you just can't find
one. And it turns out there's a guy who is Indian, who fits the bill.
And you've gone out and you've tried to recruit people.... And your
business needs this. That's what the H2B visa is supposed to be for."

However, he said, the "problem" is that if employers want "to game the
system, they might decide... We'll get a software engineer from India,
even though there are a bunch of software engineers here... because we
can pay him or her less. And that then undercuts the labour market and
wages" in the US.

Obama's remarks were actually in an obvious reference to the H1B visa
category in which software engineers would fit into. It is unclear
whether the Senator had inadvertently strayed into the realm of H1B
visas in the course of making his thoughts on the issue known, but he
made it clear he will ensure that the high skilled visas will not be
manipulated.

He was asked to comment on reports that businesses are pressuring the
Bush administration to change the ways about determining the employment
status where businesses would grant H2B status instead of having a
state agency ascertain if there is a need.

The H-2B visa category allows US employers in industries with peak
load, seasonal or intermittent needs to augment their existing labour
force with temporary workers. Typically, H-2B workers fill labour needs
in occupational areas such as construction, health care, landscaping,
manufacturing, food service and processing and resort and hospitality
services.

"... I want to return it (H2B) to its purpose, which is to make sure
that it is only for these very specialised jobs where there is a
shortage" in the United States, Obama said.

He said it is also important to remember the fact that US really had a
"shortage" of PhDs, scientists and engineers.

"We really do have a shortage of certain key occupations that, if we
want to continue to grow, we've got to develop our kids here," Obama
continued, still perhaps having in mind the H1B visa that covers
architects, engineers, computer experts, accountants, doctors and
college professors.

"We've got to make sure that they are being pushed into the high-skill,
high-wage jobs of the future. And that's got to be a group effort. The
government can do some things. Paying teachers more, giving them more
support, making sure that they're certified in the subjects that they
teach, making college more affordable. Those are all critical areas."

Obama said the US has a "continual" nursing shortage, "not because
there aren't people here who could be great nurses. The problem is we
pay our nurse educators so little, that there aren't enough slots to
train the nurses that we need. And nursing -- working conditions for
nurses aren't good enough to attract enough people into the profession.

"So we end up bringing thousands of nurses from other countries, which
by the way those countries themselves need nurses. So they really need
to be nursing back home. But the problem is we're just not providing
the incentives that are going to create more nurses," the Democrat
said.

"I want to start creating jobs here in the United States. That's going
to be my central focus when I'm President of the United States," he
said.


http://www.techcrunch.com/2007/11/26/qa-with-senator-barack-obama-on-key-technology-issues/

Q&A With Senator Barack Obama On Key Technology Issues
by Michael Arrington on November 26, 2007

Senator Barack Obama (official site), who's polling a strong second in
New Hampshire, is the next presidential candidate to step up and answer
our technology-related policy questions.

The score card is now even, with two democrat (Obama and Edwards) and
two republican (Romney and McCain) candidates.

Last week Senator Obama released a position paper on tech. Our
questions take a deeper dive on some of the key issues.

The senator is continuing to take a very strong stance on net
neutrality. He may understand the issue - and its importance to the
tech community - better than any other candidate. But we didn't stop
there. Senator Obama also outlined a broad strategy for increasing
privacy protection. Other key points below:

  * He doesn't feel the FCC went far enough in promoting competition
    with the upcoming 700MHz spectrum auctions.
  * He supports Federal intervention to encourage more ubiquitous
    broadband Internet access and delivering technology to schools.
  * He wants to keep the Internet tax free, and he wants to "close the
    loophole" that allows venture capitalists to recognize investment
    profits as capital gains.
  * He supports temporary increases in the H1-B visa program from the
    current levels
    He plans to make big investments in renewable energy, and supports
    caps on carbon emissions.

The full transcript is below.

Q&A With Senator Barack Obama

Net Neutrality

Michael Arrington: What is your position on net neutrality?
Specifically, should tiered pricing be allowed by the access providers?

Senator Barack Obama: As I stated during my visit to Google on November
14, I will take a backseat to no one in my commitment to network
neutrality. The Internet is the most open network in history. We have
to keep it that way. I will prevent network providers from
discriminating in ways that limit the freedom of expression on the
Internet. Because most Americans only have a choice of only one or two
broadband carriers, carriers are tempted to impose a toll charge on
content and services, discriminating against websites that are
unwilling to pay for equal treatment. This could create a two-tier
Internet in which websites with the best relationships with network
providers can get the fastest access to consumers, while all competing
websites remain in a slower lane. Such a result would threaten
innovation, the open tradition and architecture of the Internet, and
competition among content and backbone providers. It would also
threaten the equality of speech through which the Internet has begun to
transform American political and cultural discourse. Accordingly,
network providers should not be allowed to charge fees to privilege the
content or applications of some web sites and Internet applications
over others. This principle will ensure that the new competitors,
especially small or non-profit speakers, have the same opportunity as
incumbents to innovate on the Internet and to reach large audiences. I
will protect the Internet's traditional openness to innovation and
creativity and ensure that it remains a platform for free speech and
innovation that will benefit consumers and our democracy.

Privacy

MA: Should the government involve itself in protecting personal privacy
online? Since current measures are doing little to solve the problem,
what do you think can be done to address the issue?

BO: Dramatic increases in computing power, decreases in storage costs
and the huge flows of information that characterize the digital age
bring enormous benefits, but also create risk of abuse. We need
sensible safeguards that protect privacy in this dynamic new world. As
president, I will strengthen privacy protections for the digital age
and will harness the power of technology to hold government and
business accountable for violations of personal privacy.

Specifically, I will do the following:

To ensure that powerful databases containing information on Americans
that are necessary tools in the fight against terrorism are not misused
for other purposes, I support restrictions on how information may be
used and technology safeguards to verify how the information has
actually been used.

I support updating surveillance laws and ensuring that law enforcement
investigations and intelligence-gathering relating to U.S. citizens are
done only under the rule of law.

I will also work to provide robust protection against misuses of
particularly sensitive kinds of information, such as e-health records
and location data that do not fit comfortably within sector-specific
privacy laws.

I will increase the Federal Trade Commission's enforcement budget and
will step up international cooperation to track down cyber-criminals so
that U.S. law enforcement can better prevent and punish spam, spyware,
telemarketing and phishing intrusions into the privacy of American
homes and computers.

Mobile Spectrum Auctions and Rules

MA: What is your position on the mobile spectrum? Should government
force open access or should it simply auction it off to the highest
bidder and let the carriers decide what types of services to offer?

BO: I will confront the entrenched Washington interests that have kept
our public airwaves from being maximized for the public's interest. As
president, I will demand a review of existing uses of our wireless
spectrum. My bottom line is that rural America needs more and better
wireless broadband service, networks should be as open to innovation as
possible, and the consumer needs greater freedom and choice. We must
make sure the nation's airwaves are licensed to maximize their public
benefit. Auctions have most recently been conducted without sufficient
incentives to encourage full use and competition. With respect to the
upcoming 700 megahertz auction, many experts believe that this spectrum
in question is the last remaining available space in the airwaves for
auction with the promise to get wireless broadband deployed to every
community. I would have gone further than the Federal Communications
Commission has done to date to make sure that this spectrum will be
used and open to innovation, but I support the direction the FCC is
moving in toward more competition and encouraging new entrants into
this market and I will direct my administration's FCC to continue
moving in that direction.

The Digital Divide

MA: What is your opinion of the E-rate program? What else can be done
to increase access to technology in our schools? What can be done
outside of schools to address the digital divide more generally?

BO: I consider the E-rate program a success because it has helped make
broadband nearly ubiquitous in America's public schools and I am
honored that Reed Hundt and Bill Kennard, the FCC Chairmen under
President Clinton who oversaw the plan's creation and implementation,
have chosen to endorse my candidacy for President. Unfortunately, we
have not made further progress under the Bush Administration and I will
recommit America to ensuring that our schools, libraries, households
and hospitals have access to next generation broadband networks. I will
also make sure that there are adequate training and other supplementary
resources to allow every school, library and hospital to take full
advantage of the broadband connectivity. In terms of bridging the
digital divide outside of schools, I will reform the two major programs
which can drive broadband into underserved communities. I described a
bold approach to reforming spectrum policies in the previous question.
In addition, my administration will establish a multi-year plan with a
date certain to change the Universal Service Fund program from one that
supports voice communications to one that supports affordable
broadband, with a specific focus on reaching previously un-served
communities. Finally, I will encourage innovation at the local level
through federal support of public/private partnerships that deliver
broadband to communities without real broadband.

Education

MA: How would you define "technically literate?" What technology skills
should every eighth grader possess? What do you think is the best way
to reach the goal?

BO: To me, technical literacy means ensuring that all public school
children are equipped with the necessary science, technology and math
skills to succeed in the 21st century economy. As president, I will
make math and science education a national priority and provide our
schools with the tools to educate 21st century learners. Access to
computers and broadband connections in public schools must be coupled
with qualified teachers, engaging curricula, and a commitment to
developing skills in the field of technology. All children must have
access to strong math and science curriculum at all grade levels,
including the pre-K level. That's why I will also invest in research
and development in science education to determine what types of
curriculum and instruction work best. At the college level, I will work
to increase our number of science and engineering graduates, encourage
undergraduates studying math and science to pursue graduate studies,
and work to increase the representation of minorities and women in the
science and technology pipeline, tapping the diversity of America to
meet the increasing demand for a skilled workforce. If we export our
best software and engineering jobs to developing countries, it is less
likely that America will benefit from the next generation innovations
in nanotechnology, electronics, and biotechnology. We must have a
skilled workforce so that we can retain and grow jobs requiring 21st
century skills rather than forcing employers to find skilled workers
abroad.

Internet and Taxes

MA: What is your position on Internet-only taxes? What is your position
on the capital gains tax rate? What is your position on the way venture
capitalists should be taxed on carried interest?

BO: Internet-Only Taxes: I support the moratorium on Internet-only
taxes and will support all efforts to keep the Internet tax free.

Capital Gains Taxes: I will promote tax fairness by adjusting the top
dividends and capital gains rate to a level that would be closer to,
but no higher than, the rates set during the Reagan Administration in
1986.

Carried Interest: I will close the carried interest loophole.

Immigration and H1B Visas

MA: What is your position on H1B visas in general? Do you believe the
number of H1B visas should be increased?

BO: Highly skilled immigrants have contributed significantly to our
domestic technology industry. But we have a skills shortage, not a
worker shortage. There are plenty of Americans who could be filling
tech jobs given the proper training. I am committed to investing in
communities and people who have not had an opportunity to work and
participate in the Internet economy as anything other than consumers.
Most H-1B new arrivals, for example, have earned a bachelor's degree or
its equivalent abroad (42.5%). They are not all PhDs. We can and should
produce more Americans with bachelor's degrees that lead to jobs in
technology. A report of the National Science Foundation (NSF) reveals
that blacks, Hispanics, and Native Americans as a whole comprise more
that 25% of the population but earn, as a whole, 16% of the bachelor
degrees, 11% of the master's degrees, and 5% of the doctorate degrees
in science and engineering. We can do better than that and go a long
way toward meeting industry's need for skilled workers with Americans.
Until we have achieved that, I will support a temporary increase in the
H-1B visa program as a stopgap measure until we can reform our
immigration system comprehensively. I support comprehensive immigration
reform that includes improvement in our visa programs, including our
legal permanent resident visa programs and temporary programs including
the H-1B program, to attract some of the world's most talented people
to America. We should allow immigrants who earn their degrees in the
U.S. to stay, work, and become Americans over time. As part of our
comprehensive reform, we should examine our ability to replace a
stopgap increase in the number of H1B visas with an increase in the
number of permanent visas we issue to foreign skilled workers. I will
also work to ensure immigrant workers are less dependent on their
employers for their right to stay in the country and would hold
accountable employers who abuse the system and their workers.

Intellectual Property

MA: Do you think changes are needed in the way the U.S. Patent and
Trademark Office reviews and grants patents?

BO: I know that it is essential we have a system that produces timely,
high-quality patents. By improving predictability and clarity in our
patent system, we will help foster an environment that encourages
innovation. Giving the Patent and Trademark Office (PTO) the resources
to improve patent quality and opening up the patent process to citizen
review will reduce the uncertainty and wasteful litigation that is
currently a significant drag on innovation. With better informational
resources, the Patent and Trademark Office could offer patent
applicants who know they have significant inventions the option of a
rigorous and public peer review that would produce a "gold-plated"
patent much less vulnerable to court challenge. Where dubious patents
are being asserted, the PTO could conduct low-cost, timely
administrative proceedings to determine patent validity. As president,
I will ensure that our patent laws protect legitimate rights while not
stifling innovation and collaboration.

Renewable Energy

MA: Should carbon emissions be taxed? What will you do to encourage
U.S. innovation into renewable/sustainable energy sources?

BO: I support implementation of a market-based cap-and-trade system to
reduce carbon emissions by the amount scientists say is necessary: 80
percent below 1990 levels by 2050. I will start reducing emissions
immediately in my administration by establishing strong annual
reduction targets, and I'll also implement a mandate of reducing
emissions to 1990 levels by 2020. I will use some of the revenue
generated from the cap-and-trade permit auction to invest in
climate-friendly energy development and deployment. This will transform
the economy and create millions of new jobs. I will invest $150 billion
over 10 years to advance the next generation of biofuels and fuel
infrastructure, accelerate the commercialization of plug-in hybrids,
promote development of commercial scale renewable energy, invest in low
emissions coal plants, and begin transition to a new digital
electricity grid. A principal focus of this fund will be devoted to
ensuring that technologies that are developed in the U.S. are rapidly
commercialized in the U.S. and deployed around the globe.


http://www.zazona.com/NewsArchive/2007-11-20%20Letter%20from%20Obama.htm

Date: Tuesday, November 20, 2007 5:21 PM

<<<<< JOB DESTRUCTION NEWSLETTER No. 1786 -- 11/20/2007 >>>>>

Date: Thu, 1 Nov 2007 10:15:53 -0400
Dear Anthony:

Thank you for writing me with your concerns about the H-1B visa program.
I share your concern about the potential for abuse and agree that the
H-1B visa program should be carefully monitored. However, I do believe
that the limited increase in visas for highly skilled immigrants will
benefit the economy.

I understand and have heard your concerns about the H-1B visa program
and its potential effect on the jobs and wages of American workers. The
intent is that H-1B visas only be issued if qualified American workers
are unable to take the jobs in question. Also, H-1B visa holders should
be paid a fair market wage for their work, not less than what an
American worker would make for performing the same work. The program
should not undercut existing wage structures by importing foreign
workers.

It should be kept in mind that the demand for these workers is well
documented. When the H-1B annual numerical limits reverted to 65,000
from 195,000, the Fiscal Year 2004 limit was reached in mid-February
2004, and the Fiscal Year 2005 limit was reached on October 1, 2004, the
first day of the fiscal year. The FY 2008 limit was reached in the first
two days.  There is no question that we need to create more jobs for
American workers.

And, using the technology sector as an example, the economic production
of companies assisted by workers on H-1B visas in 1998 created more than
$16.8 billion in sales and over 58,000 jobs, the great majority of which
are going to American workers. Immigrants with H1-B visas are not the
cause of the squeeze on middle class families. Tax, workforce, and
infrastructure policies that favor the wealthy at the expense of greater
deficits hurt working class Americans. Failing to address the health
care crisis in America while favoring pharmaceutical companies hurts
working Americans.  Blaming H1-B visas will not help us rise to meet
these challenges.

I fully agree, however, that H-1B hires should be a last recourse as a
matter of labor policy. I support the efforts of the Departments of
Labor and Homeland Security to ensure that employers and H-1B applicants
follow the intent and restrictions of the program. For example, it is
incumbent upon the Department of Labor to monitor the wages being paid
to H-1B visa holders and enforce the H-1B program's provision that wages
reflect the current job market.

As this debate continues, Congress must assess how the H-1B visa affects
job opportunities for Americans and wages in the relevant sectors. I
look forward to working with the Departments of Labor and Homeland
Security and my colleagues in Congress to determine where there may be
gaps in the enforcement of the program as it stands. I would also like
to explore increasing the burden on employers to prove that all attempts
had been made to hire qualified American workers. I then will take the
appropriate steps to protect the interests of American workers.

Again, thank you for writing me about the H-1B visa program. Please stay
in touch on any issue of concern to you.

Sincerely,
Barack Obama
United States Senator