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).
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.
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) andÂ 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.