Gates sees software replacing people; Greenspan calls for more H-1Bs

[pragmatic_dem]

33. Of course it is true, and of course they do, however...

Many Asians would not come here to work if they had to prepare and pay for their own visas and corporations couldn't deduct expenses for offshoring and H1B.

India is cheaper than Mexico and/or Brazil - but our biggest import/export in electronics is with Mexico. Why?

Because of the parts used by factories in Mexico that are used to assemble just about all larger electronic items- computers, TVs, etc.

Thanks NAFTA.

And an engineer/programmer can live a pretty good life in Mexico, with a decent wage relatively clean water and reliable electricity.

However, India is changing everything.

And in fact, even China is feeling pinch of low cost labor from India.

Many H1B engineers will head back to India once they have learned enough. They will go back and manage the growing teams in India.

I've seen this outsourcing for many years, first hand. When the CEO meets with exec staff on cutting costs to increase profit, this is the conversation they are having - the tax team is always well represented.

There are large firms laying off right now with a mandate handed down that 80% of all work must go to India.

Mexico is too expensive for professional labor. India, Indonesia, Malaysia all cheaper than Mexico, but costs rising, China is being priced out - and push is for transpacific partnership to get access to Vietnam for cheaper labor.

Anyone who has been in the tech business from development thru mfg knows what I am saying is 100% true.

To be fair this is a problem that is the biggest contributor to decline of middle class - a class notorious for not looking after their own best interests. And I have colleagues who are up at 6AM and 12 AM every day to happily lead the teams in India taking over the jobs from 20 guys just laid-off. They think it won't happen to them, but it will.

Teams in India do not like taking direction from US management. Push now is to bring over H1Bs train them here, and send them back to lead in India to hopefully solve major productivity and accountability problems.

But really, you don't have to believe me. You can pretend the reason a million jobs go to Asia is that our schools are bad. Or maybe you think our teachers are bad, or you can pretend our wages have not stagnated since 1970s because of some other reason.

But that's not the truth. The truth is, labor is cheap and completely unregulated in Asia. You will be watching China's slow motion collapse because work that used to go to them is going to India. When TPP hits, China is going to get ugly. They all got rich on US investment, but it is a bubble. They priced themselves out.

Don't believe me, but you owe me an explanation of your theory of root cause for massive income disparity and offshoring to Asia.