Im-Politic: Free the Mercury News H1B Debate Video!

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H1B, H1B visas, Im-Politic, immigrants, Immigration, media bias, Mercury News, Norman Matloff, Ro Khanna, Silicon Valley, technology companies, technology workers, Voice of America, wages

There’s been no shortage of controversy stirred up by the H1B visa program that brings immigrants to the United States to take jobs allegedly requiring special talents – mostly in technology companies. So when what could well have been the first public debate ever that centers on this subject is held that included a researcher on the visas (who has charged that they overwhelmingly go to foreign workers who simply lower wages for companies who want to replace more expensive Americans) and a politician who’s been strongly in favor, you’d think a major newspaper would find that pretty newsworthy.

In the case of the Mercury News, however, you’d be wrong. And much worse, it looks like the San Francisco Bay area daily is keeping a video of the event under wraps because it makes the politician – whose views closely mirror the paper’s pro-H1B editorial stance – look absolutely terrible.

Here’s the skinny on the event. Precisely because there’s no recording available, I’m relying on this account from participant Norman Matloff, a computer science professor at the University of California, Davis, a leading national authority on immigration issues and the H1B program in particular, and a strong critic of the latter. Joining Matloff on a panel convened at the newly opened offices of the Voice of America’s Silicon Valley bureau were freshman Silicon Valley Congressman Ro Khanna and Kamran Elahian, who Matloff describes as “an immigrant tech entrepreneur.”

According to Matloff, most of the H1B exchanges took place between him and Khanna, who has been characterized in the press as “the favorite of the tech industry since he tried to first overtake incumbent Mike Honda in the 2014 election” in large part because of his defense of the domestic tech industry’s H1B practices.

As Matloff describes it, Khanna – who has also been described in the national media as a rising Democratic party star and champion of pragmatic fixes for economically besieged middle class Americans – was stunningly ignorant about recent H1B-related news developments. More troubling: Khanna sunk to thinly disguised personal (and completely unjustified) attacks on Matloff and several times seem to have flown off the handle when presented with evidence that clashed with his preconceived ideas.

I’d say “Don’t take my (or Matloff’s) word for it; see for yourself” – but I can’t. The debate was filmed by the Mercury News, but in response to a query from Matloff about whether the video would be posted, a reporter he knew at the paper told him that

“it looks like the video was essentially scrapped as a standalone report, but there’s apparently a possibility that parts of it will be used in coverage of Rep. Khanna. Not sure the reason(s) for this, but I know videos of such events are often just used in bits and pieces…”

As Matloff noted in an email to me, “Certainly it would have cost the Merc nothing to put the video on the Web, quite easily and simply.” And it’s hard to disagree with his judgment that the paper “would be performing a major public service by placing the video online (in full, of course).”

So it’s necessary to take seriously Matloff when he speculated, in that same email to me: “I can certainly see the Merc wanting to protect Rep. Khanna. They had endorsed Khanna, and generally feel their loyalty is to the tech industry. Their coverage of H-1B has been fair, but their editorial position has always been pro-H-1B.”

Matloff’s views are hardly dispositive – though I have always found him to be scrupulously honest. What could not be clearer, however, is that the Mercury News could reenforce its claims to objectivity by posting the video. With every passing day that it fails, the case for questioning its motives can only grow.

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(What’s Left of) Our Economy: Trump’s Globalization Promises are Already Producing Victories

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Canada, China, Digitimes, H1B visas, Immigration, India, Infosys, Mexico, NAFTA, Reuters, Taiwan, Trade, Trade Deficits, trade surpluses, trade wars, Trump, {What's Left of) Our Economy

America’s political and media establishments keep warning of the disastrous consequences of President-elect Donald Trump’s vow to conduct international economic policy by in effect telling U.S. competitor countries and offshoring multinational companies to “Jump.” And rather than responding indignantly by promising to resist or retaliate and touch off a series of international trade wars and other conflicts, businesses in these countries keep responding by in effect asking “How high?”

As a result, they keep adding to the already copious body of evidence indicating that the United States boasts more than enough leverage (thanks to the matchless power of its market) to achieve better terms of trade unilaterally. Here are two of the latest examples.

Yesterday, the reliable Taiwanese technology publication Digitimes reported that “US-based high-tech enterprises are expected to reduce their reliance on data centers abroad and add ones in the US.” In addition, the Digitimes piece quoted a Taiwanese tech magnate speculating – reasonably – that tech companies (like his) that have already built significant manufacturing capacity in the United States will have advantages over more foreign-centric competitors – who will “have to evaluate the feasibility of shifting factories from Mexico or other areas to the US….”

Meanwhile, on Sunday, Reuters quoted the COO of the Indian tech services giant Infosys as stating that because they expect Mr. Trump to curb significantly the visa programs that enable American tech companies to replace U.S. workers with low-paid imported Indian counterparts, companies such as his will “speed up acquisitions in the United States and recruit more heavily from college campuses there.”

Specifically, according to this Indian executive, “We have to accelerate hiring of locals if they are available, and start recruiting freshers from universities [in the United States].”

Previously, it should be noted, both Canada and Mexico announced in the wake of the Trump victory that they would indeed be willing to renegotiate or “discuss” NAFTA.

China may still apparently believe it can bluff Mr. Trump. But good luck to Beijing and its still export-heavy economic growth strategy if it thinks it can find foreign markets to substitute for America’s, with which it ran a $367 billion goods trade surplus last year. Good luck also to China’s efforts to maintain political stability if, as likely, declaring a trade war on such a crucial foreign customer raises unemployment.

America’s economic competitors are fully aware that its enormous trade surpluses have fueled much of their own, and global, growth for decades. The biggest change on this front represented by Trump’s election is that now a U.S. president clearly understands – and has been publicly touting – this indisputable reality as well.  In otherwise, for the first time in decades, America is led by someone well versed in “the art of the deal.”   

Im-Politic: Evidence that Trump is Right. American Trade Policies Literally are Killing Us

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2016 elections, Angus Deaton, Anne Case, Donald Trump, faith-based voters, families, H1B visas, Im-Politic, Immigration, middle class, mortality, Nobel prize, Princeton University, Republicans, Rick Santorum, Trade, working class

Republican presidential candidate Donald Trump has drawn a lot of scorn from the Mainstream Media and the nation’s political chattering class by insisting that countries like China, Mexico, and Japan are “killing” America on trade. The vast majority of them know nothing about U.S. trade policy, and those with a smidgeon of familiarity with the subject don’t take seriously the idea (drawn straight from conventional economics) that growing trade deficits subtract from America’s growth and employment levels.

But last week, the nation received stunning news that Trump literally may be right, along with new insights into why a White House aspirant blasting U.S. trade (and immigration) policies in the harshest possible terms has gained such traction despite a personal style and background that are highly unconventional in elective politics – to put it mildly.

A new study claiming that middle-aged American whites have recently been dying at much higher rates than their counterparts in other high-income countries also points to a strategy through which Trump can dramatically improve his standing with the religious conservative voters who still view him with such skepticism, but who wield major clout in early caucus state Iowa, and early primary state South Carolina.

The study was co-authored by no less than Angus Deaton, the Princeton University professor who just won the Nobel prize for economics, and his wife Anne Case, also a noted Princeton economist. It purports to show that, between 1999 and 2013, there has been “a marked increase in the all-cause mortality of middle-aged white non-Hispanic men and women in the United States between 1999 and 2013.”

Moreover, according to Deaton and Case, “This change reversed decades of progress in mortality and was unique to the United States; no other rich country saw a similar turnaround.” And just as intriguingly, this trend in mid-life mortality, which marked a major reversal from an overall decline in death rates for Americans aged 45 and older, “was confined to white non-Hispanics.”

But what really links the Deaton and Case findings to economic developments are the data they present shedding light on the causes of increasing mortality among this white cohort – which they themselves argue reveals the connection. Their summary is worth quoting in full:

“This increase for whites was largely accounted for by increasing death rates from drug and alcohol poisonings, suicide, and chronic liver diseases and cirrhosis. Although all education groups saw increases in mortality from suicide and poisonings, and an overall increase in external cause mortality, those with less education saw the most marked increases. Rising midlife mortality rates of white non-Hispanics were paralleled by increases in midlife morbidity. Self-reported declines in health, mental health, and ability to conduct activities of daily living, and increases in chronic pain and inability to work, as well as clinically measured deteriorations in liver function, all point to growing distress in this population.”

The authors continue:

“Although the epidemic of pain, suicide, and drug overdoses preceded the financial crisis, ties to economic insecurity are possible. After the productivity slowdown in the early 1970s, and with widening income inequality, many of the baby-boom generation are the first to find, in midlife, that they will not be better off than were their parents. Growth in real median earnings has been slow for this group, especially those with only a high school education. However, the productivity slowdown is common to many rich countries, some of which have seen even slower growth in median earnings than the United States, yet none have had the same mortality experience.”

As Deaton and Case explain it, American workers’ feelings of economic insecurity are so much greater than those of their European counterparts mainly because their retirement arrangements are so much shakier. Most American employers who still provide pension plans have moved to the defined contribution model – “with associated stock market risk.” In Europe, by contrast, most employers still offer defined benefit plans.

I have no doubt that the authors have identified a big piece of the problem. But here’s another, and one that’s directly related to the Trump campaign: Whereas recent U.S. presidents from both major parties have pushed a long string of trade deals that have encouraged American businesses to offshore massive numbers of high wage industrial jobs, Europe’s governments have worked much harder to keep that employment – and the underlying production – at home.

As made clear in my book on globalization, The Race to the Bottom, the resulting job loss and wage stagnation (and often declines) have rippled throughout the entire American middle and working class. And although it’s eminently reasonable to believe that the U.S. economy has significantly outperformed the Europeans for many years, these death rate data indicate that this outperformance has been scarcely relevant to the most important test of a successful society by far – improving the lives of the great majority of its people.

And here’s another Trump-ian tie-in overlooked by Deaton and Case. European governments obviously have been as eager as the U.S. government to admit huge numbers of immigrants from very low-wage countries into their economies. But where European and U.S. immigration policies differ significantly entails their openness to immigrants with relatively high levels of skills and education. In other words, there’s nothing in Europe remotely like the American H-1B program, which has fostered major immigration-related job displacement (and therefore wage decreases) in white collar occupations that were supposed to be immune to competition from much cheaper foreign workers. More generally, this kind of offshore outsourcing has hit a wide variety of jobs in the professions in addition to technology positions.

So this is nothing less than a golden opportunity for Trump – both with the downwardly mobile whites in general who have flocked to him not only in great numbers but on a sustained basis so far, and with the so-called evangelicals who represent so much of the Republican primary electorate. For the causes of rising white mortality described by Deaton and Case are inarguably both causes of family break-up – especially divorce – and symptoms of the strains placed on families by economic angst.

Of course, faith-focused voters have long blamed the weakening of the traditional American family overwhelmingly on the rise of more permissive social and cultural values since the 1960s. But some U.S. politicians – notably pundit and former Republican presidential candidate Pat Buchanan, and former Pennsylvania Senator Rick Santorum, who has run this year and in 2012, have made the connection with economic forces. And the Eaton-Case study gives Trump the kind of ammunition that Buchanan – who, unlike Santorum, went after U.S. trade policy – never had. Moreover, Trump has the kinds of communications skills both to capitalize on the new data, and to present it in exciting and fresh-sounding – not to mention somewhat sensationalistic – ways.

The Deaton-Case findings aren’t accepted by everyone. But whose are? More important, in politics, it’s all too easy to make persuasive claims that have no credible sources. Making claims that come from supremely credible sources can be even more effective – including by blunting lots of Mainstream Media and chattering class scorn. So I’m really looking forward to Trump’s next appearance on “Meet the Press” or some similar brain-dead national media outlet, when he tells the moderator, “Our trade and immigration policies are literally killing us! And you don’t have to take my word for it!”