New U.S. Visa Fees Would Hit Indian Firms - WSJ.com

Q&A: Who's to blame: New U.S. Visa Fees Would Hit Indian Firms - WSJ.com: "- Sent using Google Toolbar"

Question: Shouldn't we blame entrepreneurs for not hiring Americans? The real business of these 'entrepreneurs' has been to profit by throwing Americans out of work. That is not a business that America needs to nuture.


Answer:
You can't blame investors and business people for trying to be globally competitive.

If Americans want jobs, they have to realize that the total cost of labor has to be competitive. The use of technology to make it possible to realize more value for each hour of labor means there has to be adequate capital at a cost that supports the added investment.

Right now, the US has amongst the worlds highest corporate income taxes: As a result of course, it pays for an American company to either locate a subsidiary outside the US; or, if the government passes the currently proposed law to disallow US companies to deduct these foreign taxes (with the goal of making them keep jobs in the US), these companies will just have to 'out-source' this work and have even fewer American jobs.

Along with the tax idiocy of the government, there is the immigration idiocy. It may seem all smart and good to limit the ability of foreigners to work in the US on the surface; but, think of yourself as a global business, drawing on technical and production people from plants scattered around the world. It is important that foreigners can be brought to the US and Americans can be moved overseas to enrich and develop the skills base. But, what does immigration say? They say, keep all these foreigners out; or, at best, make it difficult to bring them here without inordinate delays. So, what does a company logically do? Again, since Americans can generally easily go to other countries (but foreigners not come here), the US business moves their main facilities out of the US.

Thus, once again, the simplicity and shortsightedness of American and union policy actually costs Americans far more jobs than it saves.

One could write a book on things the US is doing wrong. Another good place to look is the letter the US Chamber of Commerce sent to Obama in July on things Obama is doing wrong.