Technology giants Microsoft, IBM, Intel and HP are coming under fire for some of their recent lay offs and subsequent hiring practices. Microsoft recently let 5,000 employees go, many of whom are long-time American workers. However, they are also planning on hiring 2,000-3,000 new positions this year, many of whom will be foreign workers entering the country on H1-B Visas. Here’s Iowa Senator Chuck Grassley (R):
“If they lay people off, are they going to think of America first or are they going to think of the world first?” Chuck Grassley, a Republican Senator from Iowa, said in an interview. He sent a letter to Microsoft Chief Executive Officer Steve Ballmer the day after Microsoft announced the job cuts last month, demanding Ballmer fire visa holders first.
There’s a lot to say here. First, to Senator Grassley, Microsoft’s executive board is not supposed to think of America first, nor is it supposed to think of the world first. As our finance professor has drilled into our heads, Microsoft’s priority is to maximize the value of the company for its shareholders. You know, those people who own it? For all of Senator Grassley’s previous concerns about socialism, this quote sure has a distinct wiff of not wanting to let the labor market work freely.
Second, there’s a bigger issue that Senator Grassley is missing. Why is Microsoft hiring H1-B Visas instead of American workers? What’s the systemic cause of this shortfall in skilled American labor when it comes to technology? I wrote a blog post on this very subject about a month ago. Simply put, America’s educational institutions are failing us. India, China, Japan, South Korea and others have surpassed us in terms of science, engineering, and technology.
This is not an ideological issue. America needs to do a better job of teaching its young people. But it makes for a nice, convenient soundbyte to rail against companies that hire foreign workers than it is to tackle a complex issue like education reform. The stimulus package had billions set aside to update our schools and bring them into the 21st century. Senator Grassley voted against the stimulus package. And now he wants to score political points by waving the populist flag against Microsoft? Sorry, but I’m not buying your argument, Senator Grassley.
“I’ve done nothing wrong.”
-Rod Blagojevich, Illinois Governor on the eve of his impreachment
“Nonetheless, they were a mistake in the light of the world we live in today.”
-John Thain, CEO of Bank of America
Watching Larry King Live right now and I have to admit that Rod Blagojevich is either a very good liar or completely delusional. The Governor, up for impeachment in the Illinois Senate later this week, has made a number of truly bizarre comments. Amongst others, he’s compared himself to Martin Luther King, Gandhi, and Nixon. Weird. Tonight, he’s wrapping up a media blitz, including high-profile visits to the View and Larry King. Many are speculating that he’s trying to poison a potential jury pool for his trial. Whatever is really happening in that guy’s mind, it’s a nutty story.
Thain’s case, however, is much more straightforward. The Wall Street Journal has his full statement. Key passage (including the one above): “The second topic is the losses in the fourth quarter, which were very large and unfortunate. However, they were incurred almost entirely on legacy positions and were due to market movements.”
