H1B Pulls Down Wages 6%; Send the Coolies Home

A report co-authored by a desi says that H1B Visa admissions into the U.S. pull down wages for native IT programmers and systems analysts by 5%-6%.

Are you surprised?

You shouldn’t be: Because coolies always work for less (you know just like the Walmart slogan We sell for less you see on the back of their trucks).

Desi Co-Author

The report by NYU Assistant Professor Prasanna Tambe and Lorin Hitt of the Wharton School also calculates that offshoring reduces wages of a broader class of IT workers (including IT managers) by 3%.

Apparently, the impact of H1B and offshoring is larger for new graduates or job-hoppers, who are exposed to external labor market forces.

The researchers arrived at their conclusion after examining the U.S. Department of Labor databases and a large pool of sample data.

Queen Anne’s Dead

We’ve been shouting ourselves hoarse for quite some time that the H1B Visas and outsourcing are having a devastating impact on American IT workers, particularly in the current economic climate.

H1B Visas and its sibling, the outsourcing of well paying American jobs to Indian IT companies like Infosys, Wipro and Tata Consultancy Services have caused havoc for American programmers and their families.

Ironically, just as the standard of living gets impacted because of job losses and lower wages brought about by H1B Visas and outsourcing, the standard of living of the coolies improves.

Is this Free Trade?

We can understand if the H1B Visas were issued to specialists who are in short supply in the U.S.

No, most of the coolies are likely from F-grade Indian schools and universities and do mundane jobs here that could easily be done by Americans if they were given the opportunity.

Depressing Numbers

Look at the numbers: Infosys, TCS and other Indian IT companies are hiring in the thousands while Silicon Valley is laying off workers in droves. This is not good for our economy or for the thousands of American families impacted.

In the fiscal year ended March 31, 2009, TCS added 48,595 coolies (gross) and Infosys added 28,231 coolies (gross). Wonder how many jobs, the big and medium-sized Silicon Valley companies added in the last 12 months.

Impose Higher Taxes on H1B Visa Holders

Time to send the coolies home or alternatively impose higher taxes on them.

Did you know that in Coolie-land a.k.a India, they charge much higher rates of admission for foreigners at major tourist spots?

Time, we Americans gave the coolies a taste of their own bitter medicine.

A 10% additional tax on H1B Visa holders would be a good start.

19 Responses to "H1B Pulls Down Wages 6%; Send the Coolies Home"

  1. guruji   April 20, 2009 at 8:04 pm

    So when are you coolies leaving? It’s about time.

    SearchIndia.com Responds:

    Home is now here, kiddo.

    Now, go play with your Barbie. This is a forum for grownups.

  2. Aswin_Kini   April 21, 2009 at 1:25 am

    “Coolies”, that seems to be a right word to describe those people who begged and a**licked their bosses to go onsite and earn fat salaries. Good one!

    As for the American layoffs, you got it all wrong bro, we aren’t responsible for the layoffs of thousands of American workers. As per some reputed websites, the Indian workers who go to US through H1B visas contribute to hardly 5%-10& of the total software jobs whereas companies like IBM and HP are laying off workers in thousands. Well, to tell the truth, the layoffs are more due to the greed of the American companies. Indian workers or coolies are just a factor contributing to the recession, not its root cause.

    SearchIndia.com Responds:

    In our view there are three causes for the decimation of the American programmers:

    * Corporate greed (as you suggest)
    * Outsourcing (to India primarily)
    * H1B (there must be over half a million on H1B Visas, presumably a significant percentage being IT workers)

    You write: Indian workers or coolies are just a factor contributing to the recession, not its root cause.

    You are right but they exacerbate the impact of the recession on American programmers and their families.

  3. Aswin_Kini   April 21, 2009 at 3:12 am

    For all those who swear that Indians were the cause of recession, please read this article. http://www.lilith-ezine.com/articles/politics/American-Economy-Collapsing.html

    I wish the Americans realize atleast now that their overspending and not saving for the future has been the reasons for their downfall. Stop finding lame excuses, 5% of Indian IT staff don’t cause a huge economy to fall. And for your information, we Indians still invest in your economy by buying your cheap Toothpastes, Shampoos, KFC Burgers, Fancy CLothes(Good for nothing garments), electronic gadgets etc.

    Does any of you know how many of Indian money is being indirectly pumped into the American economy, please do a research. Stop blaming Indians for all your troubles. True, we may act like coolies, but atleast we have teh brains to save for the future.

    SearchIndia.com Responds:

    1. You write above: we may act like coolies, but atleast we have teh brains to save for the future.

    True. Savings rate has been negative here for years.

    But it’s also hard to save here given the lifestyle (we can’t go into a restaurant and order a one-by-three coffee, like they do in India), cost of living et al.

    2. We stand by our argument that IT outsourcing and H1B Visas have decimated the American programming community.

    3. Interesting article in your link.

  4. metalcore   April 21, 2009 at 5:37 am

    HA..HA..
    Thank you so much for the laughter package, you are very funny,I don’t even pity you, I forgive you….but wat the heck ! You should try for comedy central/comedy comics,…
    Good Luck son, god bless you !

    SearchIndia.com Responds:

    Thank you, Lord.

    BTW, where did the above Johnny Lever spring from?

  5. babyface   April 21, 2009 at 9:18 am

    aswin says atleast we have teh brains to save for the future
    I doubt that all Indian youngsters are as prudent as you.. Restaurants and clothes are so fricken expensive in India.. and the IT generation is spending like crazy.. as they are still young, they are yet to face the ill-effects of not saving.

  6. boopalanj   April 21, 2009 at 9:52 am

    I agree with Aswin Kini.

    Businesses run for Profits and not for Principles. You choose to run a business, two hundred workers apply for the job, Hundred of them demand comparatively more salary while hundred of them demand less with the same skill sets. Obviously, you would select people, with less-salaried workers occupying more of the pie. This is to increase your profit margin.

    When the same work can be done in low cost countries such as India with lower budget, you would obviously outsource. Only Non-profit & charity organisations work for priniciples and can adopt only-american-workforce strategy.

    At least, you americans have insisted Globalization for a long time. US-backed-World bank condemns when India gives a loan waiver to Agriculture but keeps mum when America bails out banks in billions. America caused the crisis of global economic downturn. When everything went fine, Outsourcing was not bitter for it. Now everything else in the world looks dark.

    You live for yourself, and we live for ourselves, mate..!

    Off the topic: are you not of Indian origin?

    SearchIndia.com Responds:

    1. You write: are you not of Indian origin?

    We hail from Eelam a.k.a. Tamil Nadu. 😉

    2. You write: Businesses run for Profits and not for Principles.

    True. But a nation is supposed to be run for the benefit of its citizens not for the benefit of Big Business or other countries.

    Free trade, H1B and outsourcing are all fine and dandy when the economy is growing not when we are staring at a depression.

    Let’s not provide tax benefits to those who outsource jobs (Obama has already promised to do this).

    Mark our words: If and when America goes down, it’ll take down the world with it. Naan oru thadava sonna nooru thadava sonna mathiri 🙂

  7. boopalanj   April 21, 2009 at 10:35 am

    Mate, very well agreed with the point – “a nation is supposed to be run for the benefit of its citizens not for the benefit of Big Business or other countries”. But the point is that, US does not do so.

    Whole world knows that US invaded Iraq not for providing a relief from Saddam’s dictatorship and placing the flag of justice, but for its ubiquitous oil resources and anticipated benefits for US companies by both oil and reform of the war-hit nation Iraq. You write here: http://indiablogs.searchindia.com/2007/10/28/us-pressures-india-to-sign-nuclear-deal/ that, US urges India to execute nuclear deal just for its big corporations’ benefits.

    When you accept US giving other nations a blow for its own welfare, why don’t you accept getting pinched a bit? Feel it, bro.

    Off the topic again: Would you call it Israel a.k.a U.S, just because US supports Israel blindly, friend? 😉

    SearchIndia.com Responds:

    1. You write: When you accept US giving other nations a blow for its own welfare, why don’t you accept getting pinched a bit? Feel it, bro.

    Pinched a bit? What world do you live in? Things are pretty bad here. Parts of the U.S. (some areas of New Orleans, Detroit et al) are already looking like Kalahandi (the starvation-prone region of Orissa).

    2. You think U.S. corporations are saints. Of course, not. No, they are run by the greediest SOBs on the planet. We wouldn’t have all this outsourcing but for these greedy swines.

    3. You know, it may sound like an antediluvian notion but we believe in the Live and Let Live notion. Everyone has a right to a decent life.

    4. Attacking Iraq was a disaster for Iraqis, American soldiers and American economy. The only group that benefited is the Military-Industrial complex.

  8. boopalanj   April 21, 2009 at 11:04 am

    After eight years in Nazi prisons and camps, Niemöller spoke around the world, teaching the lessons he had learned. He is famous, in part, for this poem:

    “First they came for the communists, but I didn’t speak up because I wasn’t a communist. Then they came for the Jews, but I didn’t speak up because I wasn’t a Jew. Then they came for the trade unionists, but I didn’t speak up because I wasn’t a trade unionist. Then they came for the Catholics, but I didn’t speak up because I was a Protestant. Then, they came for me, and by that time no one was left to speak up.”

    Don’t know dude, Just felt like posting it..! It’ll be only the-old-ugly-mother India, who’ll be ultimately speaking and screaming for all her sons..! Wherever they are..!

    SearchIndia.com Responds:

    Great quote.

    A must read for all those who turn a nelson’s eye toward grave injustice happening to their fellow human beings.

    Tragically, all of us are now suffering from compassion deficit disorder (particularly, Indians). 🙁

    We believe in the old fashioned notion that all human beings are entitled to at least some happiness.

  9. Dr.UnkHaf D. Aktar   April 21, 2009 at 11:16 am

    “If and when…..”
    WTH are you saying? You can believe all you want in US supremacy but the world would be fine without it.

    SearchIndia.com Responds:

    Just as every household or family needs a head, the comity of nations needs a head or leader. Notwithstanding its inadequacies, both real and imagined, the U.S. is best suited to be the global gendarme and leader.

  10. Aswin_Kini   April 21, 2009 at 11:48 am

    Well, Indian coolies or not, I wish somebody teaches the greedy companies like IBM and HP a nice lesson. It is shocking for me to see that on one end IBM downsizes 1000s of its staff, but on the other end it acquires a lot of companies, why can’t these companies have some room for business ethics?????

    I think OBAMA should blacklist such companies and cut all sorts of benefits to these companies. This will discourage the MNCs from indulging in such reckless measures. As for the onsite coolies, I would say, “Time to come home people!”

    SearchIndia.com Responds:

    The horse has already left the barn.

    CEO and top management greed has reached epic proportions. Wonder what’ll rein it in?

    The greed of IBM, HP and Wall Street epitomize the worst in the human soul.

  11. TrulySiva   April 21, 2009 at 6:35 pm

    When you entered US from Eelam a.k.a Tamil Nadu with your “Manja Pai” (Yellow colored bag) :), you must have had H1 (not sure)? Or Assume a F1 (if you came as student) and then got converted to H1 – worked so hard for this alien country (which is now your sweet home), This alien country recognizing your hard work graduated you from daily / hourly coolie status to permanent worker class (GC or citizenship). Now you are doing some return by shouting at other coolies on behalf of your “fellow citizens”.

    For world to hear you and your help to your “fellow citizens”, you must try getting into AIR say with people like Michael Savage or someone and cry in the radio.

    SearchIndia.com Responds:

    1. You write: When you entered US from Eelam a.k.a Tamil Nadu with your “Manja Pai” (Yellow colored bag)

    No, we entered the U.S. with just our Arna Kayiru (a tight thread worn around the hips, just above the schlong by many Tamils). 😉

    2. You write: For world to hear you and your help to your “fellow citizens”,

    We’ve hired Lou Dobbs, Sean Hannity, Rush Limbaugh and the Minuteman Project to do the job.

    Don’t you watch TV, read the papers or at least read the blogs.

    Don’t worry. If you stick around long enough, we’ll educate you. 🙂

  12. allwin   April 21, 2009 at 11:59 pm

    [Trash Talk]

    SearchIndia.com Responds:

    Poda danda soru (scoot, worthless fellow).

  13. Vishwa1406   April 22, 2009 at 4:20 am

    You had a koupinam (loin cloth) or just the Arna Kaiyru when you entered the US ?

    SearchIndia.com Responds:

    When we arrived, the U.S. Customs asked us what do you have? We responded:

    We’ve nothing to declare except our Arna Kaiyru and our genius (Thank you, Oscar Wilde).

    Those days, we were too poor to afford even a komanam (loin cloth).

  14. TrulySiva   April 22, 2009 at 4:18 pm

    Without Komanan and only Arna Kayiru?? Then it cannot be Arna (1/2 annas – old indian currency coins) Kayiru -it must be of bigger denomination (assuming it must cover up for Komanam too)

    thalla.. you wrote:
    We’ve hired Lou Dobbs, Sean Hannity, Rush Limbaugh and the Minuteman Project to do the job

    I like Rush better than Sean – but don’t have too many psychs to do job for you – you seem be better off alone in blog

    You also wrote:
    Don’t you watch TV, read the papers or at least read the blogs.

    Read Papers – no – not here. In India it used to be my best time pass
    Watch TV – No time machi!
    Read blogs – I read your’s! Do you recommend any better blog – that you read and then write here 😉

    You wrote:
    Don’t worry. If you stick around long enough, we’ll educate you.
    How Long – to Educate me to hate Indians??

    I like your movie reviews better than current affairs analysis.

    SearchIndia.com Responds:

    1. You write: I like Rush better than Sean

    Among the right-wing nut cases on TV, we find Bill O’Reilly a little tolerable.

    2. You write: How Long – to Educate me to hate Indians??

    Wrong. We love everyone. Don’t you remember the pledge we used to recite: All Indians are my brothers and sisters… 😉

  15. allwin   April 22, 2009 at 7:02 pm

    so u were naked when u came to this country….so then u r a slumdog millionaire..athan ippady pesura..[trash talk]

    SearchIndia.com Responds:

    Can’t you write something interesting at least once?

    You sound like you secured admission all your life in the mentally handicapped category. Good for you. Bad for us that we have to tolerate your nonsense.

    BTW, what happened to your retard buddy?

  16. allwin   April 23, 2009 at 7:42 am

    good job…me and all my desi h1b friends will sponsor movie in oak…please let me know.

    SearchIndia.com Responds:

    When we start watching movies in the company of baboons, we’ll let you know. Till that time, we suggest you stuff your mouth with bananas and stay where you are (on the trees).

  17. Vikatan   August 28, 2009 at 1:41 pm

    In one of you replies to a comment above – you mentioned
    “We hail from Eelam a.k.a. Tamil nadu.”

    Are you a Srilankan Tamil or a Tamilian from Tamil nadu (What part of Tamil nadu?)

    SearchIndia.com Responds:

    No comprende, senor. 😉

  18. jjlhicks   November 21, 2009 at 1:46 pm

    Nothing pisses me off more, besides having to train my Indian “off-shore partner” to take my Business Systems Analyst job, than a smart ass Indian telling off Americans with crappy English/grammar skills.

    Aswin_Kini – your post cracked me up.

    Trying to sell Americans on your ideas of what has caused the next great depression in America.

    Well let me tell you, off-shoring American jobs has played no small part. In fact, off-shoring has decimated the American work force. Without jobs, we don’t have buying power – so we can’t buy what you’re selling.

  19. Aswin_Kini   November 23, 2009 at 7:16 am

    jjlhicks said:
    “Nothing pisses me off more, besides having to train my Indian “off-shore partner” to take my Business Systems Analyst job, than a smart ass Indian telling off Americans with crappy English/grammar skills.”

    I can empathize with you on your situation on having to train another person(especially an Indian) to take your job. For once, I really feel that Indians have an unfair advantage when it comes to offshoring jobs. Many of them, I humbly feel, lack the skillset and expertise required for the job. So, I won’t support Indians replacing skilled Americans in any case.

    I guess you are pizzed off with my logic! But I stand by my word. While Indians did play a major part in the US Recession resulting in many job losses for Americans, there were other major factors too.

    In the end, it boils down to MNCs who want to make a fat profit by offshoring as many jobs as possible.

    It’s unfortunate that neither you nor I can do anything regarding this matter.

    But if you feel spewing venom on unassuming Indians is a solution, feel free to do so.

    SearchIndia.com Responds:

    Right.

    At the end of the day the decision to outsource to India or hire H1B Coolies is made by the top honchos (usually White Americans) at large corporations like IBM, HP, GE, JP Morgan, Goldman Sachs et al.

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