Temporary Workers to Flood America with Gang of 8 Bill

After spending more than a decade in finance, Michael Volpe has worked as a freelance journalist since 2009. He's based in Chicago. Volpe published his first book in October 2012, titled "Prosecutors Gone Wild: The Inside Story of the Trial of Chuck Panici, John Gliottoni, and Louise Marshall." His new book, "The Definitive Dossier of PTSD in Whistleblowers," is now available.


Schumer-and-GrahamIf the new Senate immigration bill, S.744, passes, approximately 1.6 million new foreign temporary workers will be given legal status in the first year alone. That’s a number even higher than was estimated for the defeated 2007 immigration bill, according to a new study.

According to study from the Center for Immigration Studies (CIS), 1,590,833 extra foreign temporary workers will be approved for legal status in the first year after the bill’s passage, and more than 600,000 extra foreign temporary workers will be approved over current levels for temporary legal status yearly after that. The 2007 McCain/Kennedy bill only increased the number of foreign temporary workers by about 125,000 over 2007 levels.

About one third of these new foreign temporary workers will be approved for H-1B visas, or they will be family members of those approved for H-1B visas. The study estimates that about 125,000 more H-1B visas will be approved over the current levels if S.744 passes. Furthermore, about 400,000 extra family members of H-1B visa holders will also be approved. An H-1B Visa allows US employers to temporarily employ foreign workers in specialty occupations, like information technology.

On a conference call introducing the study, Alabama Senator Jeff Sessions, one of the most outspoken critics of the bill, stated that such a massive increase in foreign temporary workers will only make it even tougher for US workers to find jobs in an already difficult economic environment.

“This report from CIS is a bombshell,” he said.

To my surprise, and no doubt the surprise of many, the Gang of Eight immigration bill doubles the annual number of guest workers from today’s level a much larger increase than any of us had imagined. It adds four times more guest workers than the rejected proposal from 2007. Yet today’s employment situation is far worse than when Congress considered the 2007 proposal. This large increase in guest workers guarantees that Americans’ wages will remain stagnant and that the unemployed will remain unemployed. This legislation surges the number of low-wage workers at the expense of the poor and middle class.

Congressman Mo Brooks of Alabama echoed those sentiments. He pointed out that the problem comes down to basic knowledge of supply and demand.

“It’s a matter of economics. If you have a large influx of legal immigrants, that increases the supply of labor.”

Whenever the supply of anything goes up, the price of that corresponding unit goes down. In this case, increasing the supply of labor would decrease wages, according to Brooks’ argument.

Senator David Vitter of Louisiana asked rhetorically how adding millions of new workers would relieve the unemployment crisis for American workers. “How do we expect to improve our unemployment statistics, by adding millions of temporary workers to our labor force? We must make securing our borders and stopping the flow of illegal immigrants into our country our principal focus,” Vitter said.

On the flip side, the last several years, H-1B visas have been exhausted quickly by American companies. According to a story from Daily Tech, H-1B visas nearly hit their limit for 2013 in the middle of 2012.

Microsoft, as an example, has been lobbying the government to increase the number of H-1B visas for years.

Jessica Vaughan, who authored the study for CIS, acknowledged that H-1B visas are generally exhausted every year, but said that while increasing the number of those approved maybe good for companies like Microsoft, it doesn’t mean that increasing that number, especially as dramatically as proposed in the bill, would be good for American workers.

It’s been noted many times that the last four plus years have a part of the worst recovery from any recession in the history of the nation. Unemployment is hovering near eight percent only due to a statistical anomaly which doesn’t count those that have been unemployed for extended periods of time. With those counted, the unemployment rate would be well into double digits. With that economic environment, adding millions of new foreign temporary workers will only place an even greater burden on those Americans already struggling to find work.

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  • kT TK

    Inner city youths have no jobs. This will send millions more onto massive benefit economy destroyers

  • jakeleone

    Each year ~40,000 H-1b visas are used by OffShore Outsourcing companies.
    These companies specialize in the removal of jobs from the United
    States.

    Offshore Outsourcing companies typically have U.S.
    engineering workforces that are 90% from one country. The reality of
    H-1b is that it is most often not used to hire the best, instead it is
    used to hire an average engineer to work as a liason for the removal of
    whole departments to overseas locations.

    The reality is that our
    domestic tech companies barely use the H-1b program. And of our domestic
    tech companies, the ones that use the most have the largest overseas
    operations. Meaning they are using the H-1b to avoid having to look
    locally for engineers, and opting for an already known engineer in an
    overseas office.

    The reality is that Microsoft (the biggest domestic user) ignores 99.99% of the engineering resumes it receives.

    The
    cost to bring in an engineer you already know about, on an H-1b, is
    less than the cost to find and hire a local engineer. It costs U.S.
    man-hours to find local U.S. citizens, you hire the engineer and you are
    likely paying 25% more than the H-1b engineer. And that engineer is
    Constitionally barred from indentureship, unlike the H-1b, and can be
    expected to leave at anytime.

    The reality is that the #1 usage
    for H-1b is to avoid having to hire an American citizen. To expand
    such a program at a time when unemployment is rising, shows how out of
    touch Congress is with the people, economy, workers, and voters of the
    United States. Guys like Orrin Hatch are taking payola from industry
    and ignoring the desperate need of the American people to encourage the
    hiring of U.S. citizens.

    We have let the whining a few domestic
    tech executives, that barely use the H-1b program, create and expand a
    Monster job destroying U.S. Government program.

  • sashamanda

    Yes, but Hispanics will like us if we pass the bill.

    • CowboyUp

      Lol, you forgot /sarc off.
      The law breaking Hispanics will like us and the law abiding Hispanics will be insulted. Actually, I think it’s more likely the lawbreakers will despise us as fools.

  • CowboyUp

    Another clue that the dp, and some republicans are fine with Americans being unemployed and on welfare.

  • USARetired

    If Americans do not bury their representatives in ‘No Vote For Amnesty’ mail and phone calls, you all deserve what you get!

    Our society is to passive to resist bad legislation!

  • http://forumsforjustice.com/forums/showpost.php?p=3997&postcount=13 Forums4Justice

    The 1986 Reagan Amnesty was projected to provide citizenship to the, between 1.1, and 1.3, million illegal aliensthought to be in our United States at the time ….
    Almost 3.5 million illegal aliens received citizenship.

    In addition, based on the Reagan 1986 amnesty, for each person who received amnesty,
    chain migration added 5 more, poverty-level, immigrants.

    Amnesty for an alleged 11 million, mostly poverty-level illegal immigrants,
    would add another 55 million poverty-level legal immigrants over the next two decades.

    Is poverty-level population growth good for the national interest?

    End Chain Migration.

    Instead, increase H1B visas for educated, and skilled, workers, and let’s add taxpayers, not poverty-level illegal immigrants.

  • OhioProgrammer

    Good article.
    The H1B visa program has already destroyed the American middle class.

    It’s really a simple case of supply and demand. Consider an analogy. Consider, for example, what would happen if H1B were applied to plumbers instead of engineers.

    Pick any city, let’s say, Denver, Colorado. Now, bring in 100 busloads of freshly graduated Indian or Chinese plumbers (4,000 new plumbers), who want to enter into the plumbing business in Denver, and make a living.

    The result? Wage rates for plumbers will become depressed. The existing 960 American plumbers in Denver, once busy every day, and making a good living, will now have much less work, or no work at all.

    All the Denver high school kids hear from their fathers and uncles that plumbing is no longer a good way to make a living. The plumber wages are going down, down, down. In droves, they choose some other path in life. Who can compete with impoverished hordes of plumbers from India who will work for any price? India has 1.17 BILLION people, and many of them are coming here, flooding our labor markets.

    The H1B visa law was created, written and lobbied for by large American corporations as a means for decreasing their engineering labor costs. Indeed their corporate profits have zoomed up, up, up — while the wage rates paid to their American engineers have gone down, down, down.

    This is what the H1B visa has done to the American engineering profession. H1B has already brought in over one million foreign engineers to America, thus driving down American wage rates, and discouraging American kids from majoring in engineering.

  • BenJabo1Machal

    The Plain & Simple truth is that Rubio expects the Hispanics to vote for a Hispanic such as Rubio & is willing to sacrifice the Unemployed or Underemployed American population for that purpose

  • twinsfan1100

    Barack Obama became the first nominee for president of a major political party to decline the federal matching funds program and the restrictions on corporate campaign contributions that the law required, thus dwarfing the campaign fund raising of his competitors. In exchange for millions and millions of dollars of campaign contributions from the likes of Google, Microsoft, Intel, and Apple, Barack Obama has supported and expanded work visas like the H-1B visa that his corporate campaign contributors use to replace US STEM workers with workers from low cost labor centers, primarily India and Communist China, for the purpose of 1) reducing labor costs and 2) moving US technology, industry, and jobs to the same low cost labor centers, primarily India and Communist China.