American President Barack Hussein Obama has been making a lot of news lately with respect to the US’s immigration policy. Right from envisaging a more protectionist policy for the US to the crackdown on the H1-B visas, he’s trying to woo the American citizen’s with his “No to Bangalore, Yes to Buffalo” slogan. The new tax rules for US companies that try to ship jobs offshore is another ploy to reel in these unruly businessmen who think only of profits for themselves and their shareholders. Shame on them, eh?
Now let’s consider this, the extra tax can never equal the cost of hiring an American worker for a substantially higher cost. Hence, all in all, the US companies would continue hiring offshore talent but this time simultaneously filling up the Fed coffer’s. Does it help the still out of work American worker? Definitely not! His job is still offshore and now the US companies have even less money to create more jobs. Well, who does this actually help? The Fed of course. But why would they want more blood money? Ah, I forgot the trillion dollar debt that they have created.
Great isn’t? First, the idiotic Fed creates an economic environment that leaves the American people with 3 trillion dollar debt, after which they punish the few that could help with even more tax. And then they go accusing Madoff for his Ponzi scheme!
With regards to the H1-B visas, again the only thing that Obama will accomplish is to crackdown on the competitiveness of US companies, nothing more. As long as business’s strive to be profitable, globalization will exist. Either that or Joe the plumber / programmer should accept working at $25k a year. Its absurd to tell businesses that they need to hire American’s at $80k a year and oh, by the way, you can’t shift that job abroad! One must learn the meaning of being competitive.
When I see the policies being enforced in the US and UK, I cannot but think of the analogy that all immigrants are guests who are not welcome any more. Would you go to a house that you knew were not welcome to? I wouldn’t. The people who support such protectionism must pay the price for their ineptitude.
There are those who are calling on India to make its own protectionist agenda but that would be equally dumb. Two negatives in this case will not create a positive. Instead, the Indian government should strive for more limited government and free enterprise. The majority of Indian industry has still not awoken to the miracles of IT. I hope the day is not far when an Indian techie is happy to be “on-site in Bihar”. This surge of economic growth is only possible through free trade, anything else is just slow poison.