America’s Competitors Angle for Silicon Valley’s Business

Aug 02, 2017 · 43 comments
NL452KH (USA)
The world is not lining up to invite unskilled Latinos with five kids and a third grade education nor is it lining up to invite religious fanatics from Muslim lands with an equal number of kids and an equally bad education. Stop pretending otherwise.
lindalipscomb (california)
The Trumpsters may be able to help other countries' industries in a very clever way!
sheng (brooklyn)
I'm surprise you didn't mention Shenzhen https://www.youtube.com/watch?v=SGJ5cZnoodY
RH (CT)
I've not heard or read that anyone including the Trump administration wants to turn away entrepreneurs or innovators. The so-called “highly skilled IT workers” that we limit are mostly middling coders who get hired by companies like Disney so they can do away with healthcare and matching pension costs, doing many American workers out of $80K-$120K jobs. And that Mexican governor sounds like he’s already given up on his own country that he must rely on the low-cost of living to lure prospects. This article over-does it. Most Americans want to allow in all the innovator immigrants we can and less that are illiterate in their own language.
John (San Rafael)
As demonstrated by this comment, most Americans have no idea what they're talking about.
James Beckman (Frankfurt, Germany)
I am from Silicon Valley & have long taught in Germany. I suspect some of my Master's in Engineering students will look at Mexico & Canada. What most people don't understand is that such 22-25 year old's often want some creative excitement before they settle into a more normal career. These are mostly Germans & Indians, easily able to put off the "good life" for the most part. My Chinese generally want a few years in Germany before heading back home, but perhaps the Canadians & Mexican might be persuasive. Since engineers normally work in teams, there is no need to be a star but rather a knowing team player.
Still Waiting for a NBA Title (SL, UT)
If there are more people south of the border with good paying jobs, I don't really see what the problem is. Jalasco is not Silicon Valley. If you made good money, where do you think most people would choose to live? While Silicon Valley's tech innovation domination is certainly not guaranteed, it also is not on shaky ground. The tech industry most certainly does use H-1B visas to hire cheaper foreign labor instead of equally qualified Americans. There is documented proof. The program needs to be overhauled not eliminated. Keeping out the world's best and brightest isn't in our best interest either.
M.R. Khan (Chicago)
Trump, Bannon, Session, and Miller's immigration policy is not about helping American workers or boosting the economy. Unemployment is at historic lows as is illegal immigration. What this is really about is implementing their overt White Supremacist agenda. They want to take the country back to the early 20th century when the KKK was part of the establishment and Italians, Irish, Slavs, Jews, Asians, to say nothing of Africans and Hispanics were barred from beoming Americans. These racial and religious supremacists need to be put back in the dust-bin of history.
Geronimo (Colorado)
Funny. Trump's entire family are Slavs and Jews, and he's literally peppered his admin with a diverse array
John (San Rafael)
Please name the "diverse array."
Whatever (NH)
Good luck to these "competitors." If it was that simple, it would have been done long ago. It's not like there's a shortage of smart and talented people from poorer countries wanting to emigrate to Australia, Canada, Ireland etc.

Moreover, the real immigration issue under Trump is of the illegal kind. I am not sure that a lot of the undocumented folks are looking for Silicon Valley jobs.

Silicon Valley, Route 128 etc. are what they are because of the ecosystem, the innovation culture, and the tolerance for failure. Those are impossible to replicate.
Jeane (Northern CA)
No, they're not 'impossible to replicate'. One of the biggest issues in Silicon Valley is that due to the concentration of companies and limited geography, everyday workers cannot find housing. Right-wing restricted immigration gives a push to an undesirable trend for your children and THEIR children. There has already been a migration of young talent, mostly to the PNW and Texas. These are the ones who start businesses. People go where the jobs are, but they stay where they can buy a home and settle down.
Michael (Morris Township, NJ)
The solution is clear: we should adopt an immigration policy like Canada's -- or Mexico's. We should happily admit those with talents and skills, while excluding those with neither.

A wall -- whether figurative or literal -- should not exclude PH.Ds or MDs. But it SHOULD exclude those with no talents other than a strong back. We have lots of people here already with those qualifications, and we don't need any more.
Mike (San Antonio, TX)
Absolutely correct on this one, there should only be one criteria for immigration and that is meritocracy!
Michelle Varrin (Palo Alto, CA)
Yes! just like Trump! He is where he is because of merit for sure. Meritocracy works and don't let anyone tell you it has anything to do with money and privilege. Fake news. Sad.
Scott (FL)
So who benefits from all these US innovators staffed with foreign workers generating large profits? Certainly a handful of venture capitalists, investors and tech executives. But the American tech workers? Not so much.

If foreign workers going to foreign countries win the tech wars then did American innovation really lose? If foreign tech workers come here take American jobs and win did American innovation really win?

There is no reason that foreign companies can't rack up their fair share of wins without the US wringing it's hands that we're technological dinosaurs. Let the American tech workers compete on their own merits - with some limited immigrant participation - and let the chips fall where they may. I'm comfortable we can still get our fair share.

The rest of the world certainly has some catching up to do with infrastructure and technology penetration. That's great that there are large opportunities in their home markets. No need to feel bad if another nation manages to serve their own markets.
Jeane (Northern CA)
We should be content to gradually slide into the status of a second-rate nation, like the country we originally separated from?
John Edelmann (Arlington VA)
We don't need technology and those liberal elites for jobs here, we know can be coal miners. All good right?
Elizabeth (Brooklyn)
Is Trump's racism and xenophobia going to reduce this country to a third world banana republic? Does he love the high school educated middle America work force that is his base so much that he drives down our economy? His and the other billionaires' companies? Is his plan to build schools that create a highly skilled tech workforce from the coal minors who see their jobs slowly disappear as the country turns more and more to clean environmentally friendly energy?
How is it possible to allow one man to exert so much destructive power over all of the things we value so highly? Innovation, accessible health care, clean air and water, a haven for immigrants, and belief in a beautiful and safe future for our children? We are seeing that it is possible in the presidency of Donald Trump.
Basecampanne (Anacortes, WA)
The problem is also the majority party in Congress, and the Cabinet they agreed on with Trump.
Gene Osegovic (Monument, Colorado)
"Mr. Trump says businesses use the program [H-1B visa program] to avoid hiring higher-paid Americans." On this particular topic, I agree with President Trump.

The H-1B program has given American businesses access to technology workers around the globe. With so much competition for the available jobs, the costs of wages and benefits are kept in check. At the same time, many American I.T. workers struggle to find or remain employed. And they have little or no power to push back against poor working conditions, such as chronic overwork, sleep deprivation, or flat or falling wages.

Leaders of the Democratic Party, when they are not not incriminating the Russians and many others for the loss of the presidency and other political offices to the Republicans, seemingly believe they can return to power by either running against President Trump, changing their messaging, or doing a better job of spending voter outreach funds. These notions avoid confronting their party's biggest challenge: Many voters have had their lives compromised or ruined by neoliberalism, and they will no longer vote for a Democratic Party that fails to support them on economic matters.
RDB (CA)
Just a few days ago, USCIS has formally disclosed data on the number of H1B applications for the last 2 years. The data proves that majority of H1B visas go to outsourcing firms with sub-par salaries (~60,000 to 80,000 USD).

For year 2016, the top 5 companies who received the most visas were Cognizant, Infosys, TCS, Accenture, and Wipro. (All outsourcing firms) Cognizant received 21,459 H1B visas. Infosys received 12,780 and TCS received 11,295. As such, 70% of total 65,000 visas went to these 3 outsourcing firms. These were jobs that could have been done by US workers. Plain and simple.

Product-related technology firms like Apple, Amazon, Microsoft only received around ~2000 visas each, and their salaries were higher. (~110,000+)

It's unfortunate that New York Times won't even look at data provided by USCIS, and instead focuses on the same old, tripe on US losing supposedly losing out on innovation.

The abuse of H1B/L1/OPT guest worker visas programs has destroyed an entire generation of US technology workers.
Mike (San Antonio, TX)
You're spot on with this one. the report analysis can be found below. Also, American companies like Accenture, Deloitte, IBM are abusing the visa well. Then there are numerous small body shops that supply labor to Google and Apple as well.

https://qz.com/1041506
Mike (San Antonio, TX)
BTW, quite a lot h1b holders from infosys and tcs (and numerous small body shops) end up as sub-contractor to many large name american companies like apple, microsoft and cisco. Ask them to reveal that data ASAP.
Garz (Mars)
Yup, I guess that everyone is just running to live in China or India, or how about with the arabs? NOT!
PDB (Washington Dc)
I believe that we'll be begging people to come here at some point in the not-to-distant future. From anywhere, to do just about anything...Today and tomorrow, need more people to do all sorts of work, to keep the consumer economy going, to pay taxes, and to look after our aging populace. We're fixing the wrong root problem(s) by closing our borders and not seriously addressing education, re-training, fair wages, corporate welfare, etc.
Jeff (San Diego)
In a separate article on the LATimes, you can read that Trump has proposed phasing out family reunification/chain migration (where you have priority if you have a family member in the US) and moving toward a merit based system.

Opposing the H1B is absolutely not the same thing as opposing immigration. The H1B is the method used by corporations to run the US immigration through heir own very opaque HR departments, giving tech employers the power to decide who is - and isn't - allowed to live here. They use this to gain a tremendous amount of leverage over their workforce. It's a corrupt program that should be replaced with a merit based system that is not controlled by corporations and preserves freedom of movement and work for immigrants.

A lot of people will line up to oppose this sensible change simply because Trump proposed it. That would be a shame. A merit based system, similar to what Canada and Australia have, with points for work skills that will to the economy, would benefit the US. To make it more palpable to the left, perhaps we could structure it to guarantee no decrease in net immigration and a larger allotment to refugees and low skill workers?

This is essentially what Canada does - emphasizes skilled immigration, while setting aside a minimum number of slots for refugees and what they call "economic immigrants".
Ann (WA)
It's a good idea to have a merit based system, but you should look at the criteria to gather points for the merit system that Australia and Canada applies and compare that to the ones proposed by the two GOP senators and you would notice the striking differences. The devil is in the details, because the current proposal is a cleverly disguised propaganda, which is a shame because merit based system is a great idea.

There is wholesale misinformation about H1B among Americans. H1B does allow one to move from one employer to another. Perhaps you are confused between H1B and L1. It's only on L1 visa that an employer can dictate when and where the employee goes and there aren't min wage requirements either. About large consulting firms getting majority of H1Bs, I agree with you on that, and that has been a problem not only for Americans but also for genuine H1B workers who earn more than double of what these consulting firm employees earn (~$160k) per year. But here is the thing - about 20% of those workers who get their H1Bs approved never get to come to the United States simply because of circumstances where either the projects gets cost cuts or resource cuts or attrition. In those cases even if the H1B is officially allocated to a person, it is never really used, so the assumption that a 100% of the 65k H1B visa candidates reach the US every year is simply untrue. H1B needs reform, but what is also important is the education of how this complicated process actually works.
RunDog (Los Angeles)
The problem with H-1B visas, to my understanding, is that it is misused to allow large numbers of tech workers who are not necessarily highly skilled into this country as a means of displacing perfectly capable American tech workers. If Trump is not focusing on that problem, but instead is essentially eliminating H-!B visas for all tech workers, including the highly skilled, then he is painting with too broad a brush and needs to re-think what he is doing.
FunkyIrishman (Eire ~ Norway ~ Canada)
When the President heralds America to be first, what he is implying is that the country be first in importing workers at low pay and exporting highly skilled workers to other countries ( for less pay as well )

The net result being a domestic work force that is less and less unionized and working on contract. ( not full time with benefits )

It is no different from the tried and true strategy by all republican governors and their race to the bottom, while trying to poach workers\businesses from blue states with offers of no taxes and the like.

We of course, ALL pick up the tab in higher rates\taxes for everything else and transfer payments to those states. ( especially when their economies fail due to a low tax base )

Free trade is not supposed to mean working for free.
ltglahn (NYC)
It's always heartening to see the Mexican economy strengthening. Having a stable economy and government are key to reducing the number of people crossing the border in search of opportunity.

What's ironic is that Trump's shortsighted, protectionist values may succeed at keeping the border safe after all--by destroying US leadership in science and technology.
s.khan (Providence, RI)
Why the foreign companies including several from
India don't hire permanent employees in USA rather
than relying on H-1B visas? t is not clear from the
report if these workers are hired for their skills not
available here or the low wages. It doesn't appear
there is shortage of skilled workers considering the
examples of many companies which had American
job holders train their Indian replacement and then
laid off. Tech companies lie when they claim the
shortage of skilled workers in USA. They hide their
primary objective of low cost and higher profit. Congress
goes along because they get hefty donations from these
companies. Shame!
M. Gessbergwitz (Westchester)
President Trump reformed the H-1B visa to prevent it from being abused by Indian outsourcing firms and American companies looking to undermine their American workforce with imported cheap labor. Looks like the US tech firms are now using the NYT as their mouthpiece to try and scare Americans into supporting the previous H-1B status quo that has been harmful to American workers.

The US will do fine and even thrive with Trump's H-1B reforms. The only difference now is the DNC donor elites in Silicon Valley will have to hire Americans (that they previously laid off) and pay the immigrants they truly need what they're worth.
Kathleen Kourian (Bedford, MA)
For decades the U.S. was the "shining light" for technology and innovation attracting the finest minds from all over the world. Thanks to Trump (and a
third of U.S. voters), we have backed off from our leadership (no TPP, no Paris Accord). Today's announcement of further restrictions on legal immigration (and complaints on Russian sanctions) help speed the process of abdicating leadership. How is this making America great again?
Osito (Brooklyn, NY)
Nativism has serious economic consequences. Trump and his angry, fact-averse band of white nationalists are a disaster for this country's long-term economic health.
Richard Pontonei (Queens, New York)
It is interesting that Trump is pushing for "merit based" immigration rules.
His ancestor Friedrich Trump entered the United States in 1885 and listed his occupation as "none". Guess he would not have been able to enter this country legally.
Thomas H. Pritchett (Easton PA)
The U.S. used to be a magnet for the best of and brightest from the 3rd world. We started losing some of that appeal at the start of the century when China started getting serious about catching up with the U.S. and started luring some of their brightest here in the U.S. back substantial financial inducements. Now Trump has decided to turn the magnet totally off and is now telling the 3rd world's brightest that they are no longer even welcome. This is a mistake from which the U.S. will never recover. Now other countries will develop their magnets and we will never be able to get the cream of the crop as we were doing through all the later 20th Century and well into this century. In order to "Make America Great" Trump has weaken our technical economy while giving our competitors a major shoot of steroids.
EDH (Dallas)
The US and in particular Silicon Valley's economic success is built on an efficient uses of the best and the brightest from around the world in culture and business ethos of talent acquisition. Trump's fear loathing and xenophobia is the promotion of the anathema of what has make the US successful. The realization of Trump's xenophobic slogans into policy will eviscerate the very growth Trump portends to champion.
I-qün Wu (Cupertino, Ca.)
Again, Trump is doing everything in his power to make America less great.
Erik Yates (Lyons,CO)
How perfectly ironic that 45 may end up being one of the great jumpstarters of the Mexican economy.
Mike Long (Chicago IL)
Yeah, right. They will soon be the tech center of the world!
stan continople (brooklyn)
Whatever his actual motives, Jeff Sessions was the only senator to ever address H-1B abuses, something which always surprised me. Why has the reaction to this blatant insult to American workers been greeted with silence from other elected officials? Follow the money. It really is unfortunate that the poster boys for fighting this decades-long scam have to be Trump and Sessions. Because of the public's reflexive antipathy towards anything this duo favor, in this case they are shooting themselves in the foot.
Michael N. Alexander (Lexington, Mass.)
Good, well-balanced article.

In my opinion, the Trump administration has been pursuing *stupid* immigration policies. I can think of no other word to describe it. That doesn't mean we should return to all of the thoughtless Obama-era policies, many of which harmed American STEM workers and enriched irresponsible corporations like Disney.

We need to encourage selective well-designed immigration policies, designed to bolster our economy (long-term) and promote humane values. Today, we're floundering with so-called system that isn't based on intelligent design.