Fictional Employment Theory

Folks we have the most despicable, Karl Rove propaganda tactics of upside down causality. Corporate lobbyists, with their journalist tools are now claiming offshore outsourcing jobs and labor arbitrage create jobs.

Get that? If you are laid off, have to train your replacement, that helps the economy, according to these corporate lobbyists. I've seen some spin in my day but this one takes the cake! Right o, global labor arbitrage creates jobs when every single statistical fact shows the opposite is true. Global labor arbitrage loses US jobs and weakens the middle class. This is simply:

FET - Fictional Employment Theory

What's more amazing is this complete statistical caca gets even reported. Of course the real researchers showing the false hood of these claims are quoted at the very end of these News articles.


Dr. Ron Hira in the Washingon Post said:

These firms hire almost no Americans and their entire business model rests on shifting as many American jobs overseas as fast as possible. When eight of the top 10 H-1B recipients are the who's who of offshoring then I think it's an understatement to say the program is worse than a complete failure.

Infosys, the Indian outsourcing company, received more than 4,500 H-1B visas in 2007, about 40 times the number Oracle received and 18 times the number Google received

In regard to this new Fictional Employment Theory Hira:

The reports take fanciful leaps of logic to draw strong conclusions from weak or non-existent models.

The NFAP didn't examine most of the top H-1B recipients in its reports, because only three of the top recipients in 2007, Intel, Microsoft and Cognizant, are in the S&P 500

Get what, these very companies demanding more guest workers have been laying off US workers! Hira:

Many major tech companies in the U.S., including top-10 H-1B recipient Intel, have been cutting their workforce. So in Intel's case the numbers would be negative. Few technology companies are growing their workforce rapidly.

Now we have an immigration attorney (they make huge bucks in their glorified human trafficking called Visa processing) spins this same false claim and Forbes actually printed it!

What these planted commentaries as well as The Bill Gates Show are using as backup is a seriously flawed, corporate paid for, NFAP study (ahem - immediately discredited), claiming that H-1B guest workers create jobs. That's right, while Americans are displaced via offshore outsourcing and insourcing, wala, somehow this race to the bottom agenda magically creates jobs.

Professor Norm Matloff (see attached file), nailed the phoniness of this study by the statistics themselves:

But what does that say? It simply says that about 20% of the new jobs go to H-1Bs. It doesn't say that the H-1B workers caused the creation of new jobs.

In other words, there is zero content in Anderson's analysis. Matloff has a PhD in statistics so this truly debunks the Fictional Employment Theory claim.

Even Further, Economist Alan Blinder's study, Jobs that are Offshorable (pdf), found the number one job category that is vulnerable to offshore outsourcing is computer programmers.

The Commission on Professionals and Technology report is in depth statistical analysis and shows a very different career and employment picture. This report proves flat and declining job growth in STEM (Science, Technology, Engineering and Mathematics) careers as well as declining salaries or flat salaries. Obviously, there is no worker shortage for salaries would increase and there would be higher demand.

Of course now we get three corporate lobbyist bills introduced in the House and Senate, right on the cusp of a recession, which means major layoffs.

Please call these corrupt legislators and express your outrage for ignoring the reality there is no worker shortage, enabling global labor arbitrage, not representing working professionals, and simply doing Bill Gates bidding. (Remember Microsoft has a 98-99% reject rate of all applicants. Believe me, if they actually tried to create a good employment environment, they could easily hire Americans.)

  • The "Innovation Employment Act," (H.R.5630) introduced by Representative Gabrielle Giffords, D-Arizona, would increase the cap in H-1B visas from 65,000 a year to 130,000 a year in FY 2008, and up to 180,000 in subsequent years. Call: (202) 225-2542
  • Rep. Lamar Smith, R-Texas Call: (202) 225-4236, introduced the "Strengthening United States Technology and Innovation Now" (SUSTAIN) Act (H.R.5642) that would increase the H-1b cap to 195,000. also sponsored by Rep. Eric Cantor, R-Virginia, Call: 202.225-2815
  • Senator Judd Gregg (R-NH) introduced an amendment to increase H-1b in the Senate budget bill, Job Destruction newsletter also reports. Call: (202) 224-3324

Believe it or not, Senator Gregg just spewed this Fictional Employment Theory nonsense all over the Senate floor:

Mr. DURBIN. (asking a question) Does the Senator feel the option of job vacancies that may be filled by H -1B visa holders should first be offered to Americans to fill those jobs before an H -1B visa is given to a person coming from another country?

Mr. GREGG. I happen to believe the H -1B program is one of those programs that expands jobs in the United States, and by getting people here, you actually create jobs and you will create more jobs for Americans rather than lose jobs.

Let's not let the facts get in the way of the spin, such as:

The H-1b cap was 195,000 2001 through 2004. It was never reached, so it was essentially unlimited. Still the economy continued to decline, total tech jobs dramatically declined, throughout that entire period. Offshore outsourcing in India became a booming business.

From Urban Institute 2007 study:

The U.S has been graduating more S&E students than there have been S&E jobs; hence, there are 15.7 million workers who report at least one degree in an S&E field but 4.8 million workers in an S&E occupation.

In case the Bush administration gets into the act, let's do a little reality check on the real numbers of jobs created versus BLS projection numbers. Consistently the BLS have overstated the projections for jobs created.

Plain text icon another badly flawed NFAP study.txt10.94 KB



Fictional Employment Theory

Judd Gregg is a corporate sell-out. He should just be a lobbyist for the Chamber of Commerce or Microsoft; instead of impersonating as a representative of American citizen.

How can increasing imported cheap labor create jobs?

It is completely illogical for this report to assume that jobs are created because of H-1B visas being hired. In fact, these jobs were created in spite of the H-1B visa.

If H-1B visas were made unlimited, there would be little or no employment in the technical trades for American-born workers.

This Fake Employment Theory has to be challenged because both the Democrats and Republicans are buying into these faux facts.

How can increasing imported cheap labor create jobs?

This is a part of the oft repeated by the MSM punditry, chamber of commerce, cable news talking heads and politicians supply sider fallacy that a supply of skilled workers somehow magically creates demand for them.

The only thing it does do, and by Greedspan's own admission, is suppress the wages of educated and skilled workers.

If it were really true that a supply of skilled and technology workers creates demand for them, how do they explain Michigan or any of the other industrial midwest states?   According to one of actor Jeff Daniel's Michigan PR pieces, Michigan has the highest per capita concentration of engineers and skilled tradesman in the country, as well as the surrounding states are up there too.  You would think that employers would be falling all over themselves to hire these skilled and experienced workers, and the offered wages would be commensurate.  But such is not the case, Michigan has the highest unemployment in the country, followed closely by the neighboring states.  There are an awful lot of un and underemployed engineers and skilled workers here in my neck of the woods


Throw the Bastards OUT!

It's election season.

Make these candidates, especially Congress, sweat.

They will be re-elected, of course, but publically roil them in every media.