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  • Morning Bell: Job Creation Not Happening

    Today, the Department of Labor reported that 570,000 Americans filed initial claims for jobless benefits last week. This follows news from ADP Employer Services on Wednesday that private employers cut 298,000 jobs last month. As bad as these numbers sound (and they are bad) the real threat facing our nation’s economy is that, as Gallup’s Chief Economist Dennis Jacobe puts it: “job creation in August is just not taking place in the U.S. economy.”  Why is job creation more important than job loss numbers? Heritage fellow James Sherk explains:

    The American economy is highly dynamic. Industries continually expand and contract while entrepreneurs create new companies and uncompetitive firms go out of business. Workers move between jobs frequently as this occurs. … Recent research shows that an increased likelihood of layoffs is not the main reason that unemployment rises during economic slumps. … The main reason unemployment rises during economic downturns is that job creation falls while the labor force continues to grow, making available jobs scarcer. As a result, many without work stay unemployed longer, driving up the unemployment rate.

    If our economy is going to avoid double digit unemployment, the private sector is going to have to start hiring people again. Unfortunately, every agenda item emanating from the White House is will only hamper, not allow for, private sector job growth.

    The Stimulus: President Obama’s $787 billion stimulus has been a boon for public sector unions and the economy of Washington, DC but it has completely failed to spur private sector job growth. The Wall Street Journal reports: “Dave Anderson, chief financial officer of Honeywell International Inc., said the stimulus package actually froze business activity at first as firms tried to figure out how they could benefit from the government spending. The $787 billion package ‘created actually a slowdown in order activity in terms of the flow that we would normally have anticipated.’”

    Health Care: Our nation needs health care reform that lets Americans reduce their exploding health care costs. The best way to do this is to reform the tax code and remove regulations that are preventing a true health insurance market from functioning. But the President only wants to expand the status quo by building off the failed models of Medicare and Medicaid that got us into this mess in the first place. Worse, President Obama is set to fund his massive expansion of government-run health care on the backs of businesses. The employer mandates used to fund Obamacare will cost businesses at least $49 billion per year and put 5.2 million low-wage workers at risk of unemploy­ment or reduced working hours. The prospect of fewer job opportunities in the future will put another 10.2 million workers at risk of slower wage growth and cuts in other benefits.

    Cap and Trade: President Obama continues to try and sell his cap-and-trade plan as a job creation bill, but the more honest in his own party have admitted otherwise. During a committee hearing on cap-and-trade this year, Rep. John Dingell (D-MI) explained: “Nobody in this country realizes that cap-and-trade is a tax — and it’s a great big one.” According to a Center for Data Analysis study, the economic costs of the Waxman-Markey energy tax bill include net job losses approach 1.9 million in 2012 and could approach 2.5 million by 2035.

    Higher Taxes: President Obama wants to raise taxes on U.S. companies by: 1) limiting the ability of American business to defer U.S. tax on their foreign income and 2) reducing the credit American businesses receive for foreign taxes paid. These higher taxes will be a big competitive disadvantage for American firms. Punishing U.S. companies for competing overseas will ultimately kill jobs here at home. For every worker employed by a U.S. subsidiary in a foreign country, 2.3 Americans are employed in the U.S. And a 10 percent increase in foreign investment by businesses has been associated with a 2.6 percent increase in investment in the businesses’ home countries.

    Trillion Dollar Deficits: Last week, the Office of Management and Budget released numbers showing that under President Obama’s budget the public national debt–$5.8 trillion as of 2008–is projected to double by 2012 and nearly triple by 2019. Looking at these budget forecasts, investors are demanding higher interest rates to soak up the tremendous flows of debt coming out of the Treasury. This will mean higher interest rates for consumer loans, mortgage loans, business loans, etc. Sherk concludes:

    American businesses and the American economy need time to recover and heal from this deep recession before facing new threats from massive government intervention in the economy. Presented with a more certain path forward, businesses will regain their optimism for the future, and will resume making the investments they need in order to expand and to compete in the global marketplace.

    Quick Hits:

    • The broadcast networks may be gearing up for the new fall season, but the White House is already in reruns. President Barack Obama’s prime time Congressional address slated for next Wednesday will be the sixth time he has commandeered network airtime in his eight month presidency.
    • A set of proposed United Nations sex education guidelines promote access to legal abortion as a right.
    • Supreme Court watchers believe that Justice John Paul Stevens’ decision to hire only one law clerk for the 2010 term signals that he may be planning to step down next summer.
    • The White House admitted yesterday that they helped the Department of Education draft plans instructing teachers nationwide to assign students a paper on how to “help the president.”
    • According to USA Today, environmentalists and others supporting global warming legislation are outspending the measure’s opponents in the television advertising skirmish underway in advance of Senate action this month.
    Posted in Ongoing Priorities [slideshow_deploy]

    52 Responses to Morning Bell: Job Creation Not Happening

    1. Matt S - Denver, CO says:

      Nope… job creation certainly isn't happening. And this should be the death-knell for federal takeover of Health Care.

      Obama's stimulus and federal budget is driving further unemployment. Why should the public believe that a health care takeover would work to their benefit?

      Obama's messaging on jobs and health care has failed because his policies have failed.

      (interestingly, His messaging has utterly failed as well. This is highy enjoyable! http://www.conservativeblog.thewebinfocenter.com/… )

    2. Ben Franklin, IN says:

      An excellent analysis, except for one missing component. The hike in the minimum wage, which I believe is a larger driver even than these other points. The buying power of the "minimum wage worker" is often over-looked because of the type of worker this represents – teenagers, retirees, working moms, etc… In actually, these are usually people with completely disposable incomes).

    3. Dean- Texas/Alaska says:

      To destroy the economy is the plan. These people "hate" America and want to put us on our knees. You know the names. It worked for Adolph, and it's working now.

    4. Bob Veigel, Arlingto says:

      Why in the world would anyone believe job creation could or would happen? The current Obama administration is doing all in its power to destroy America. Your article highlights many job destructive programs. Cap & Trade, Health care bill, Stimulus programs, Restrictions on energy development, except 'green energy' nonsense, Higher taxes, Massive national debt, extravagant Congress and White House, A power hungry and obsessed with control administration, new regulations & executive orders and czars to make sure nothing beneficial happens. America and Americans better wake-up and take action to stop the destruction of our Nation.

    5. JW Delorme,RN Texas says:

      Actually, Medicare and Medicaid are not "failed programs". Their models work well if adhered to correctly. The failure is in the enforcement of fraud prevention by State & Fed and stopping the huge $$ drain they coause.

    6. tim - pittsburh pa says:

      the true crisis is unemployment…might be

      15 million or more not employed.

      and the number grows monthly putting the trend towards a number that i do not want to even predict.!!

      in the health care so called crisis there might be 4 million with a concern.

      numbers don't lie like the obama administration lies.

    7. Ken Jarvis - Las Veg says:

      GOP and HF do ALL they can to make Obama Fail

      then COMPLAIN ABOUT NO NEW JOBS.

      It is ALL GOP BS Logic.

    8. Ken Jarvis - Las Veg says:

      "The White House admitted yesterday that they helped the Department of Education draft plans instructing teachers nationwide to assign students a paper on how to “help the president.”

      GREAT IDEA – Hope he sends a copy to –

      CONTROLLING MEDIA

      WSJournal

      FoxSnooze

      Rupert Murdock

      Heritage Foudation

      Chamber of Commerce

      Rush

      Glen Beck

      Sean Hannity

      Lou Dobbs

      Forbes Magazine

      Yahoo News -

      Las Vegas Review Journal

      Thier ONLY work is to destroy Obama and America

    9. Whicket Williams Kin says:

      Sounds like all is proceeding according to plan I understand completely This Obama plan is to make america into a communist country that means extremely poor country with all the wealth concentrated amoung a few eletitist seems to me his plan is working perfectly. Anybody that does not understand is just an idiot who is not paying attention, or a fool who believes propaganda, and does not have enough sinse to think for themselves

    10. Ben C, Ann Arbor says:

      While Represenative Dingell has stated publicly Cap and Trade is nothingt more than a tax he VOTED FOR IT when Congress passed the bill. He stated in the Congressional record that the bill is not ideal but is a good thing. My sense is that he is a master at talkling out of both sides of his mouth – but then he is a true politician.

    11. Whicket Williams Kin says:

      "Never re-elect an Incumbent"

    12. Darvin Dowdy - Houst says:

      We need to hear a greater degree of specificity from Republicans. When they talk about creating private sector jobs are they speaking of jobs for U.S. citizens or more jobs for illegal aliens? Because the GOP and its buddies in the U.S. Chamber of Commerce have definitely preferred the latter over the past several years. Here it is about 14 months until the 2010 mid-terms and the Republican party has not regained the trust of the Conservative Base on this particular issue. Darvin Dowdy

    13. John says:

      Democrats generally don't promote by merit, but nepotism, thus bad judgment and bad ideas like enlisting all the little school cherlin' to "help the President". It's the worst kind of bureaucracy possible. A boss once said that in the federal government, individuals rise to the level of their incompetence; a high level, a high level.

      A news program debate I once saw on television opened my eyes to this, and over the years I have seen it again and again.

      It was between a conservative woman and a liberal woman who were both involved in politics. The conservative woman was as sharp as a Rapalla fillet knife. The liberal woman couldn't box her way out of a wet paper bag; she lacked knowledge and command of the subject and couldn't reason very well. It was not that she was just not experienced speaking before a camera and large viewer audience.

      An administration full of such people, and not even fully staffed, can't be any better, and this is something to be exploited in defending the interests of the nation and the Constitution.

    14. LEB, San Francisco says:

      Every month 138,000 legal immigrants enter America on H1B work visas. US Corporations continue to export operations, and with it jobs, offshore to take advantage of tax incentives on profits of goods sold that are manufactured offshore. This tax loophole cost the US Billions of dollars in badly needed tax revenue and the tax policy cost Americans jobs, which in turn drives people into unemployment and further reduces tax revenue and productivity. US Corporations are taking advantage of the H1B visa program and hiring cheap engineering resources out of India, bringing them into jobs here in the US by way of Tata, Infosys, HCI and the many other offshore Indian and Chinese consulting companies, and laying off American workers. US Corporations want tax credits in the name of job creation but their giving those jobs to legal immigrants by way of the H1B visa program. These legal immigrants come here and agree to work for significantly less money. This practice and policy is turning our country into a third world nation. Everyday more jobs are lost and with it tax revenues and our quality of life. The hi-tech industry in the US has been taken over immigrants, many of which do not pay taxes here in the US. They are brought over here on H12B visa's for 6 years, cycled back to their country and replaced temporarily for 6 months while they become eligible under the H1B visa program to re-apply for another 6 year work visa, and brought back to their former position.

      This abuse of the program is costing America's jobs and tax revenues. The Administration needs put a hold on all H1B work visas until our economy recovers. US Corporations need to start hiring Americans for those jobs. The Administration must stop giving tax incentives to US Corporations to send manufacturing and jobs offshore. Just last week I read that Boeing CEO is planning to move Boeing corporate HQ and all operations to China. Boeing employs hundreds of thousands of people in Seattle, Washington area. If they are allowed to move all those jobs to China it will be nothing short of a disaster for the career employees of Boeing and the country. Jeffery Immelt, CEO of GE was quoted last week in the WSJ that GE is going to start pulling manufacturing back into the USA. Furthermore he said outsourcing in America has gotten out of control.

    15. Lynn B. DeSpain says:

      Obama has done overcooked this ham, and the BBQ sause taste like manure!

      Hozro

    16. F. Swemson says:

      The most important line in the article above is:

      "Unfortunately, every agenda item emanating from the White House will only hamper, not allow for, private sector job growth."

      My question therefore is when will The Heritage Foundation stop beating about the bush and simply say what we know to be true, that Obama isn't trying to solve any of America's problems, quite the contrary. In fact he's deliberately and systematically destroying our Republic so that he can rebuild it a manner consistent with his twisted and evil progressive (communist) ideology.

      America didn't have an election last year, it was taken over in a bloodless communist coup.

    17. Bob R Geologist, Tuc says:

      Obama's government has become totally unglued. The evidence that the $700+billion in Gov't funds to jump-start our ailing economy has produced zilch results. Cap and Trade is a sneak attack on our purses based on a proven lie that man's dependence on hydrocarbon fuels is a danger to the livibality of our planet. CEI just delivered the proof of this far out hypothesis as follows: "The most telling point is that after spending $30 billion on pure science research, no one is able to point to a single piece of empiricaal evidence that man-made CO2 has a significant effect on the global climate." This is scientific over-kill that should banish this misbegotten Policy from further consideration, even if it involves hogtying its chief promoter, Al Gore.

    18. Joe says:

      Communism is a utopia. While the masses are kept in absolute poverty, without a voice, living in fear, the elite (this is what they think they are) are living like those they have always despised: ROYALTY!

      I have seen this personally. What is coming from this administration is evil, radical and absolutely deceitful.

      Do not listen to what OBAMA and "his club" says, watch WHAT THEY DO!!!

    19. Joe says:

      Unfortunately, someone in Las Vegas is enjoying Koolaid too much.

    20. jim toledo says:

      Hats off the folks at Heritage you've done it again, great facts and this information should be plastered on every major network in America. Over the next two weeks we are going to be bombarded by half truths, outright lies and mispeaks that are heads are going to blow off. It's great to know there are a couple of outlets to get good information, kepp up the good work.

    21. Pingback: Economy: Biden vs. Reality, again « GOODNESS WORLD LIFE BLOG

    22. Mike Sheahen, Hickor says:

      There's no job creation happening?

      Sure there is job creation happening!

      Of course not among us private citizens and that unquestionably "evil mean and greedy" job creating and wealth producing, and government tax revenue-generating, so-called "private sector", but instead in the glorious, unquestionably angelic confiscating, usurping, and thus always trustworthy government.

      In fact, evidently all one needs is to be a government elitist and statist power and money-grabbing big-time tax cheat with Comrades in Congress in order to be Obama's Secretary of the Treasury, like Tim Geithner; or a self-declared Communist, unelected, unconfirmed by Congress, and answerable to nobody except the President, in order to be one of Obama's many and multiplying "Czars" with thus Unconstitutional powers, like Van Johnson; or, come to think of it, just be one of the so-called "Progressive" Left's many and multiplying dependants upon government, as in dependant upon government paychecks (which are funded by us taxpayers) or as in depending upon the Obama Gang's checks to "spread the wealth around" which are funded by government confiscating from us taxpayers and giving it to those whom they are increasingly making dependant upon (and thus also controlled by) government, including through government-controlled so-called "health care".

      In other words, while the so-called "Progressives (Leftists)" have practically no private job creation happening, and in fact they are causing both private wealth and job creation, and resulting government tax receipts, to shrink incredibly fast, they are making both government and dependence upon government, through taxpayer-funded government job paychecks and taxpayer-funded government welfare checks (a.k.a. so-called "entitlement" checks) spread and infect like the infectious life, liberty, and pursuit of happiness-killing disease that is.

      So all we, the people, have to do is abandon our so-called "old, out-dated, and dangerous" ideas about life and freedom as individuals and a nation, jump on the so-called "Progressive (Leftist)" bandwagon, such as by getting a government job, or angling for ever more taxpayer-funded redistributionist government largesse, and our life, liberty, and pursuit of happiness will be "fixed"…fatally, which the so-called “Progressives (Leftists)” are again proving by making our freedoms, and, yes, our prosperity and security, as individuals, and as a nation, disappear faster than ever before.

    23. Mike Sheahen, Hickor says:

      Correction: …or a self-declared Communist, unelected, unconfirmed by Congress, and answerable to nobody except the President, in order to be one of Obama’s many and multiplying “Czars” with Unconstitutional powers, like Van Jones;"

    24. Roger S., Ma. says:

      Ken, out there in Vegas, how's that desert sun been treating you?!

      BO and his minions aren't failing because of HF or GOP, but because they forgot their 1st grade lessons, like 2+2=4, not 5, nor 4.01, nor 3, nor 3.99. I'll prove it to you

      Banning those from the "airwaves" or the "web" who point this out can't change that. I'll prove that, too.

      Now for the lesson:

      1. Whatever value is created in the economy, call it GDP, is there only once, just like you can't spend the same dollar on an ice cream cone AND the martini.

      2. So, if the gov. spends that dollar, you, I, or our employers can't spend it too.

      3. So, it follows that money the gov. spent can't be spent by your employer to create new jobs.

      4. So, TARP essentially took only those dollars which were there in the first place, from your employer who would have known what to do with them, and gave them to some other guy who doesn't, or to the Gov. itself, who knows even less.(Ever hear of government spending wisely, or being frugal? Not since the days of Cal Coolidge, I'll wager.)

      5. So, where's the money now? –Who knows, and that's part of the problem. Everyone's running around looking for it, except those who had it in the first place and would have known what to do with it. –Why aren't they looking too? Because they're gone: Bankrupt!

      6. So, how long will it take till somebody finds it? –Again, who knows? Could take a while!

      7. So, what happens next? –Well, somebody will find the TARP, eventually, and some will actually have an idea to do something useful with it. –What's useful? –Whatever the "market" is willing to pay for, NOT what BO says is useful. That's how markets work. You don't tell'em what to do, they tell you!

      8. So, why didn't the gov. just borrow the TARP? –Well, it did, in a way, by running the printing press, but it's still just one TARP. The real TARP, productive capacity, was sidelined, and the new, virtual, TARP, hot off the press, is just that, virtual. Is that the same as "unreal", you ask? Quite! Ever try keeping the rain off something with a virtual TARP? Oops, I forgot: It don't rain in Vegas. Well, substitute "sun". Could help!

      9. So, that means we can't spend it again? –Exactly! It's simple, as I wrote above. It's still the same dollar! Whether the gov. "took it", or "borrowed it", it was there only once. Wherever it came from, that's where it went "missing", for keeps! –Now, you CAN spend "unreal money", but the simple logic of identity (also forgotten by BO and minions) says you'll be buying "unreal things", and ONLY unreal things!

      10. So, what happens next? –Depends on the gov. If it removes stupid regulations, and stops spending other peoples' money like a drunken sailor on a weekend pass, people might stop looking for the "lost dough" and start concentrating on building useful new things. And, they might be able to scrape together the REAL money to do it! BO still needs to recall that 1+1=2, or 2+2=4, and the "law of identity", and nothing else!

      Now, Ken, how's HF or GOP hurting the "great Guru" by reminding him of these facts?! Do you mean, if we stopped doing that we could help him repeal the Law of Identity? How about the Law of Gravity? That would save jet-fuel, maybe even the planet?

      —QED

    25. Ron Derry NH says:

      America will survive Nimrod the magnificent but the damage has yet to impact all. There are no jobs for those getting laid off, the stimulus didn't reverse the trend, as every realist new it wouldn't. Political drones and economic wizards from ivy league yes tanks have all chimed in ignoring reality in hopes dung could float a sinking ship.

      The recession is a depression now and the summer business growth has not occurred so my guess is the fall panic to roll up the rugs and get ready for winter will reveal that the worst is yet to happen.

      After unemployment runs out and the jobs aren't there and the actual working class, not the plantation slaves, will not have an economic out further foreclosures, insecurity and political distrust will increase.

      These Bozo's running the imagine Wagon have got to start thinking JOBS!!!!!!!!!!!!!!!

      Without jobs, profit , entrepenurialism and wall streets desire to expand investments into business ventures in this country we are bust.

      If Obama isn't aware of this he is ignorant; if he is and he still continues on the Socialist Marxist infusion into our country then he is an oppressor and a vagrant. He should be denied his position on the grounds of separation of church and state as Marxism is a religion; as is socialism. They feed on hope and promise and deliver servitude to the will of the elitist rule.

      Marxism is the religion of the Atheist!

    26. JS, Lexington says:

      Any informed citizen should know of the travesty that's being waged daily on The Constitution and our American way of life and the freedoms that define it!

      Those who don't have the time to research and stay informed are being hoodwinked by a mass media that should be made to pay for the injustice it is performing daily.

      Mass media should be held accountable and, even though I work in it, I hope that happens! Shameful – if not criminal conduct! A true propoganda machine. Someone should be made to pay…

    27. Linda Todd, Las Vega says:

      A question for all of those who voted for Obama: Are you happy with the "change" you've gotten so far?

      The president is determined to destroy this country. Something must be done to stop this madness!

      I, a true blue, red-blooded American, am scared to death of what is coming.

      You should be too.

    28. Pingback: I Pledge To Server Obama?

    29. weaver, California says:

      Too bad that Heritage has been promoting the neocon "labor shortage" agenda for so many years.

      There is nothing new about job creation stagnation, it's been happening for the entire decade.

      1950's

      Population Growth = 11,516,000

      Employment Growth = 7,215,000 (62.65%)

      1960's

      Population Growth = 19,449,000

      Employment Growth = 13,862,000 (71.27%)

      1970's

      Population Growth = 30,811,000 (Depression in Mexico)

      Employment Growth = 21,224,000 (68.88%)

      1980's

      Population Growth = 20,865,000

      Employment Growth = 17,685,000 (84.76%)

      1990's

      Population Growth = 21,667,000

      Employment Growth = 16,998,000 (78.45%)

      2000's (Mar. 2009)

      Population Growth = 26,254,000

      Employment Growth = 5,137,000 (19.57%)

      Source Data:

      BLS CPS Downloaded on 4/20/2009
      http://www.bls.gov/data/

      Formula: Each decade represents EOY Dec XXX9 to EOY Dec XXX9

      Example: Decade of 1950's = Dec 1949 to Dec. 1959.

      Series Id: LNU00000000

      Not Seasonally Adjusted

      Series title: (Unadj) Population Level

      Labor force status: Civilian noninstitutional population

      Age: 16 years and over

      Series Id: LNU02000000

      Not Seasonally Adjusted

      Series title: (Unadj) Employment Level

      Labor force status: Employed

      Age: 16 years and over

    30. Space-Bisbee,Az says:

      I'm sorry, jobs have been created by Obama, just not here. Try China, all our "Green Projects, Government Motors, Who moved production of its two new cars to Brazil, Tech jobs going to India. He wants to be THEE World Leader, you know, All hail the Obamanation. Not Me!!!

    31. JB, Ohio says:

      On 08/24 I received a flawed email from the excellent job opportunity aggregator SimplyHired (simplyhired.com). They are obviously in a good place to generate stats on jobs available.

      The email said [pay attention to the 2nd full paragraph!]:

      "The End of the Recession is Upon Us…

      … or at least that's what some economists think.

      There has been a lot of talk about various indicators including the GDP report, unemployment rate, number of jobless claims, stock prices, etc. to determine whether or not the recession is over or not. Not to throw any more indicators out there, but Simply Hired collects and compiles a large amount of data in regards to one of the factors of the recession that may affect you the most directly: employment trends. Looking at Simply Hired's trends data, you can see that while there are many industries that have been hit hard during this recession, many are faring well.

      While employment in the private sector has been decreasing, government jobs have steadily increased since the recession began in December 2007. Despite about 50,000 state and local government jobs lost, over 110,000 have been added, most likely due to the federal stimulus program. Simply Hired trends data shows that government jobs have increased 41% overall since the beginning of the recession with a break down of federal jobs increasing 66%, state jobs increasing 30% and local jobs increasing 20%."

      The full article from SimplyHired is at http://tinyurl.com/lakcmm.

      Often employment/unemployment stats do not distinguish between those employed in government and non-government jobs. That really skews the data, because every single government employee is a tax. Don't get me wrong… we do need government employees. But each one that is added is a tax — an expense to the economy rather than a gain. They don't belong in the same stats as non-government employees.

      It's more complicated than that these days, however. A massive number of private employers rely on the government to do what they do. Many (most?) non-profits fall into this category, for example.

      For-profit companies are increasingly relying on the government too. Many are flocking to economic stimulus grants to pay to spiff up their businesses.

      In my own business, I could easily become dependent on the government without even meaning to. As an organizational improvement consultant, government grants are available to pay for just about every service I provide — sometimes even 100% of my charges. My clients may look to government grants to pay me. If that happens, I'm dependent on the government too.

      Please understand… I'm more than happy to serve clients regardless of the source of their investment in my services. Who can afford not to?

      But that's exactly how this works. Make government involvement integral to our society — make it more than competitive with private industry — in such a way that we can't afford not to take them up on their offers.

      jb

    32. Steve Tolland says:

      Every day I hear of a new bunch of IT workers /Engineers being made redundant with their jobs either being taken by H1bs, L1s or offshored. This is going on more than with Bush & CO. and I believe it was the President's platform that he was going to return jobs to the US. Not happening and nothing being done.

      More recently thanks to NAFTA we have the TN visa of which 100,000 have been granted to Mexicans to take US jobs away. Hey Heritage – I love ya but this economy isn't going to improve until we go back to work at decent careers with decent wages.

      http://www.madnamerica.com

    33. Bruno, Texas says:

      Why are we going after the H1B? I understand that in the years past that was true, H1B has really taken a lot of our jobs, but today the H1B are been avoid by IT companies. A lot of job postings are saying "Citizen Only" and the numbers of H1b (as I remember in august of 2009) was still open, with over 20,000 openings, in 2008 the number ran out on the first day. I know of H1b people who lost their jobs and went back to their home country only to be contracted back into the company with lower wages in their home country.

    34. DJ says:

      Reply to: LEB, San Francisco:

      "Every month 138,000 legal immigrants enter America on H1B work visas". hahaha….please post some useful, true information here, not rumors and hearsays. There is an annual cap for H-1B visas, 65,000 + 20,000 for higher degrees. This year 20,000 visas are still open and not taken.

      "The hi-tech industry in the US has been taken over immigrants, many of which do not pay taxes here in the US". Another completely false information. H-1Bs pay all taxes, federal, and state if applicable and they also pay medicare and social security which many would never use.

      You are very misinformed and confused and you are spreading your confusion to others too.

    35. checker, NY says:

      DJ you are wrong and naive about the H-1B annual numbers. The numbers you cite are just the starting point: it grows much higher due to all the exemptions. Please read the following article with information from the U.S. Citizenship and Immigration Services, noting in particular the following line:

      "In fiscal 2008 there were 288,764 H-1B petitions filed, and 276,252 were approved."

      http://www.azcentral.com/arizonarepublic/business

    36. Pingback: Friday, September 4, 2009 — ExposeTheMedia.com

    37. Omega says:

      Checker the numbers you are stating are again grossly due to misinformation and lack of attention to detail.

      The exemptions are several agreed but they are not new H1Bs. Nor is the exemption the "cap" exemption. They are fee exemptions.

      and some are renewals. That means 276,652 are not brand new entries to US. It is rotation of existing H1Bs.

      The point about legal immigrants agreeing to work for significantly less money is also not entirely true.

      Billions of consulting firms that makes this possible are to blame.

      Ideally H1B is expected to work like this: A US employer directly hires the immigrant based on their experience and education. And the labor condition process states that the employer MUST pay the immigrant the prevailing wage in the industry which is determined by the position offered, location and other factors. This prevailing wage is the same for citizen/non-citizen or non-citizen.

      However many US employers prefer not to do this process themselves rather they rely on the middle men/consulting firms to do this for them. And these firms take FULL advantage of this situation. They pick an immigrant for a highly qualified job (in the eyes of US employers)

      but file a petition showing a different/lower job responsibilities.

      So H1B is not to be blamed for its misuse by the consulting firms who follow a BAD business ethics.

      Isn't it the bad business ethics that caused this economic downturn in the first place?

      Whichever way you see it is childish to blame the lowest people on the totem pole. Blame the big corporations that make all this possible to save big bucks.

    38. debug says:

      My congress wasn't elected to aid in sending jobs from Americans to other countries. Immigration rights shouldn't be given without equal labor laws. Force companies to pay India's valuable workers. And we can have an open exchange of work force as America does with many countries. Boycott us it will only cost India more jobs. Their are more American company jobs in Mumbai than their are in any states.

      There are few IT jobs left. However, most of these jobs only target guest workers under the H1b visas. They don't allow locals – Americans and Permanent Residents to apply. Americans are being discriminated in their own county.

      We need to pass the Durbin and Grassly Bill – S887

      it will make the playing field even again. Americans and Permanent Residents can compete again

      There are thousands of highly skilled Americans that are unemployed that are willing to take these jobs. It's about time that we help Americans which helped bail out Wall Street. The American middle class has been devastated by these temporary Guest worker visas that were not meant for immigration purposes. It's about time we help our own American Citizens and local residents instead of bringing in cheap foreign labor. There is no skills shortage just companies that don't want to pay prevailing wages.

    39. Bob, Charlotte, NC says:

      I can't understand why the Heritage foundation has supported expansion of the disastrous H-1B visa program. The program drives down wages and pushes Americans out of good-paying jobs. What could be more un-American than worker-exploitation and income in-equality on par with that of the third world?

    40. DC Tungseth says:

      Thanks for your great work.

      From what I hear, the ultimate political result of all this summer's activity will depend on the independents, the middle/central third of the nation, who may be ready to say "I want my vote back" because of fear of socialism, etc.

      I don't want the overly outspoken right to scare them off. More light less heat.

      Also when this extreme move towards mindless deficits and government control of everthing is moderated, I hope there is new reasonable leadership and proposals to offer. A sequel to Reagan would help. Please keep up the good work as a guide to conservative thinking.

      Is there an article with a title like "Govenment spending (taxes) causes much more umemployment than any jobs it might claim to create.

    41. Anita Bonghit says:

      "For every worker employed by a U.S. subsidiary in a foreign country, 2.3 Americans are employed in the U.S."

      Now who's smoking Crack?????

    42. A-US-PhD-wasted says:

      The universities have employed massive numbers of postdoc PhDs without dissertations, as scientist H1s and J1s, this is a complete fraud on the US taxpayer and destroys the taxpayers' investment in education. Universities have ignore differences in PhD standards and education standards from around the world, so that they can hire cheap H1s and J1s.

      A PhD in the US averages 7-8 years, because of the extensive dissertation requirement. There are no recognized PhD programs in the US without a significant dissertation requirement.

      Many countries have 3-4 year PhD programs without a dissertation requirement including Japan, Germany, Great Britain, India, China.

      Our corrupt universities and established morally bankrupt scientists want inexpensive foreign indentured labor to work on their research grants, so more hard-earned taxpayer money goes into their own pockets. At the end of 7-8 years of graduate school and 4 years of undergraduate Americans are out of money. So the universities and established scientists bring in a second tier of individuals to exploit, the foreign “postdoctoral trainee.”

      from “The real science crisis bleak prospects for young researchers.” Richard Monastersky. The Chronicle of Higher Education Volume 54, Issue 4, Page A1 Sept 2007

      “In England, for example, chemistry students generally obtain their doctorates in 3.5 year s, whereas Americans take almost double that, says Alvin Kwiram, a professor emeritus of chemistry and former vice provost for research at the University of Washington.”

      from Nature 431, 382-383. "in the United Kingdom, the trend [to obtain a PhD degree] is up from 3 years to 3 1/2 or four. With financial commitments from the Medical Research Council MRC and the Welcome Trust, the number of 4 year programmes is rising."

      See also, Samuel Coleman, "Japanese Science from the Inside."

      Japan has several types of PhDs including a ronbun hakase or pepa dokuta, a PhD awarded by industry for publishing a paper and awarded without classes and comprehensive exams. Most in academia, also know that there is also an igaku hakase PhD. a degree awarded by any hospital for residency on top of the MD. That is why most MD Japanese in the US are both MD PhD, as well as China. Dr. So & So MD, PhD Looks impressive, but it is often really fraud.

    43. A-US-PhD-wasted says:

      For my Labor Day weekend report I can only report more future American science jobs destroying policies.

      The American Recovery and Reinvestment Act (ARRA) money to going to the universities and the NIH is just 10 billion dollars of future science jobs destroying waste for Amercians.

      There is not a single H1B restriction on this ARRA money and most of it will go to employing foreign H1bs, not taxpaying Americans.

      Not one single mainstream article has discussed how the NIH ARRA stimulus money has discussed how this taxpayer derived money is going to create jobs for US citizens, even as the unemployment crosses over 10 %. … absolutely shameful behavior.?

      Consider this, there are a minimum of 20,000 H1Bs at just the top 100 H1B using universities. At 50,000 dollars a year this means 1 billion dollars is absorbed immediately into the foreign H1B workers, the real figure closer to 3-4 billion in salaries.??

      There is no cap on the numbers of H1Bs (and others) that the NIH-universities can import. Why? Because in 2000, econ 101 guru Phil Gramm co-sponsored a bill, S 2045, with Arlen Specter that successfully inserted a no cap exemption from for the universities and the out of control US government to "ensure that the U.S. economic expansion will not be impeded by a lack of skilled [ foreign] workers."

      Therefore the H1B cap does not include universities or the out of control US government and the NIH. These H1b numbers do not count in the cap, so there is no control on the H1B numbers in these cases.

      The inclusion of the science money in this manner will go directly to the H1Bs and will further destroy US jobs by exporting technology as some workers return to foreign countries, including communist China, and become key builders of competitive companies to small US biotechnology companies.

      The NIH ARRA is a horrible waste of money and detrimental to future science jobs and reveals the disconnection between government/science leadership and the taxpayers/workers. ??Not one scientific leader in the US has stood up and said this, the NIH leadership is more interested in filling their pockets with taxpayer money, while destroying the future of Science jobs in American, than being honest even as unemployment hits nearly 10 %.

    44. paul collins.the vil says:

      this administration is not about helping the citizens.Obama knows exactly what he is doing.He wants to destroy this country and take over as a dictator.It is time we start doing what the government is not doing.We at one time where the greatist manufacturing country in the world.Now it is almost impossible to buy anything made here.We need to refuse to buy anything not made here.If we refuse to buy foreign.Companies will have to bring jobs back.Do not deal with companies that produce overseas or use immigants while americans are looking for work.This idea that we won't do certain jobs is stupid.One of the first things should be deportation of illegals opening up more jobs and relieving the burden they are putting on social services.The first thing I do when hiring a company is ask if they hire illegals.If theydo they are immediatly crossed off my list of potential.

    45. George USA says:

      It all started with The Iraq war. Energy Prices spiked and collapsed US spending power and that killed the over leveraged housing market . Plus the added deficits by both administrations. The projected Obama deficit and the Real Deficit from a surplus caused by Bush tax cuts dumping billions in his rat hole of Iraq. The worst was the $700 billion theft to bail out banks , Wall street and Paulson . Obama unfortunately is allowing the screw ups by the Bush socialist bailout to continue. Then there is also the broken promise Obama made about tax breaks to companies that create jobs here. The bottom line is until we stop shipping jobs ..no .. careers overseas we will get no where. I say a pox on both the houses of Republicans and Democrats.

    46. Pingback: The Absurd Report » Job Creation Not Happening

    47. Eddie MacIsaac, San says:

      The only reason Obombma wants to take over health care is so he can claim every job was created or preserved by him.

      The actual name for this is Obamacide.

    48. Pingback: RagingElephants.org » News for 09/08/09

    49. J. White says:

      Did anyone expect anything other than what is happening?

      1- The Empty Suit hates the insurance companies- because that's what his professors [liberal fools all] told him to do.

      2- "cap and Trade"? What took folks so long to recognize that it is, indeed, a pernicious tax and another way to destroy capitalism as seems the Empty Suit's bent.

      3- Healthcare? The insurance companies have no one to blame but themselves. Surely, one of those companies can supply insurance at a reasonable cost- as on old jeweler once told me- "Yussel, you sell a lot of things for a small profit, but it adds up. If you try to sell them at a high profit, you will not make the same amount of money". This IS a solid economic concept. So, low-cost azttracts a lot of people, not all of whom will run to the doctor every time they have a hangnail.

      4- As for national security- the Empty Suit has done more to damage that than anyone in history with the exception of Benedict Arnold.

      5- As for unions, I was once forced to become a Teamsters member, and one day was told by the shop steward that: "you're working too fast and getting too much done. You're making the others look bad. If you do not slow down, your car might have four flat tires." Charming- this is exactly what unions are: More money for less work.

      We had some Amish folks build our pole barn- they got the building up inside of two weeks. No coffee breaks, 30 minute lunches, no goofing off, just working. This building is 60 x 120 ft, they had the roof on in one day—–no one said anything about having to lend a hand, no stupid union moron telling them that that was not their job.

      Yes, at one time, unions were important in their purpose, but just like government agencies created in response to specific issues, they now just try to justify their existences.

      By the same token, if business owners return to their ideas that folks who work for them are mere serfs, then unions once again will be necessary.

    50. BED,SFO says:

      I think H1B is not the issue. It has been taken out of context. H1B actually help the local economy. They pay all the taxes, social security etc which they may/may not get. And to top it all, many american cos as h1b's are gng back to their native countries( bcos of recession) are asking the h1b's gng back, to set up the IT ops out in the native country. All the expertise will be lost from US and US will be the loser, if they try to push out legal immigrants. I would say make h1b's more liberal, allow more ppl to come in and work and get the taxes to fund the american health care etc.

    51. Pingback: Morning Bell: The State of Conservatism is Strong | Conservative Principles Now

    52. garyneal3 says:

      Wow. That is so many people without jobs! Is that number still as high this year? I had no idea that unemployment rates were going up that high again. I was without a job for a little while, but I searched around for physical therapy assistant jobs and they have a lot of good options available.

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