"In a time of universal deceit telling the truth is a revolutionary act." -George Orwell

Posts Tagged ‘Underemployment’

World Of Work 2013 Report: U.S. Inequality Now Literally Off The Chart And Rising

In Uncategorized on June 9, 2013 at 7:30 pm

This new chart from the ILO's latest World of Work report doesn't have enough room to visually portray the full extent of inequality in the United States.

Oldspeak: “This new chart from the ILO’s latest World of Work report doesn’t have enough room to visually portray the full extent of inequality in the United States.”

Among the world’s major nations, documents the UN agency dedicated to labor matters, only one currently has a level of inequality both high and rising” –Salvatore Babones

The controllers seem to have done quite well for themselves in this alleged “recovery”. The People have fared significantly worse with less to come as the full effects of U.S. austerity measures are felt. The stealth depression will continue and it’s getting worse.. The People in Cyprus, Greece, Spain, Portugal, Italy, and The U.K. have made their displeasure with the current state of affairs know loudly, repeatedly and en masse, where inequality is far less severe than in the U.S. Yet there’s a far smaller and more disjointed protest movement here in the “Greatest Nation On Earth”. Why? Why in a nation founded by protestors and civil disobeyers, are there so few to be found today? Was COINTELPRO, that effective? Perhaps it never really stopped?

By Salvatore Babones @ Inequality.org:

It is well known that the level of income inequality stretches much higher in the United States than in the other developed countries of Europe and North America. Now a report from the International Labour Organization shows that U.S. inequality has literally gone off the chart.

Income inequality in the United States is soaring so high, in fact, that the authors of the ILO’s new 2013 World of Work report couldn’t even place the United States on the same graph with the other 25 developed countries their new study examines.

Income inequality reflects the sum total of all the differences between the incomes enjoyed by different households in a country. Differences between rich and poor households, rich and middle-income households, middle-income and poor households all enter into total income inequality.

Researchers usually measure income inequality using a statistic called the Gini coefficient. The Gini coefficient runs from a minimum of 0 (perfect equality in incomes across all households) to 100 (one rich household gets all the income for an entire country).

The ILO report places the US Gini coefficient at 47.7, or almost half way toward the extreme where one rich household gets everything and everyone else gets nothing.

By comparison, the levels of inequality in the other 25 developed countries studied all fall in a band between 20 and 35.

The share of U.S. adults living in middle-income households dropped from 61 to 51 percent between 1970 and 2010.

Even worse, in America inequality is not only high but rising. The Unites States is one of only three developed countries where income inequality rose during the recession of 2008-2009, then continued rising through the lackluster recovery of 2010-2011.

The other two: Denmark and France. Both these countries had much lower levels of inequality to start with. By 2011, Denmark’s inequality had risen into the high 20s and France’s inequality into the low 30s.

In the United States inequality sat at 46.3 before the recession, moved to 47.0 in 2010, and rose further to 47.7 in 2011.

Rising inequality has hit the American middle class particularly hard. But America’s middle class decline began well before the recession hit in 2008. Every year fewer and fewer Americans qualify as middle class, and those who do have lower and lower incomes.

The share of U.S. adults living in middle-income households, the new ILO report notes,  dropped from 61 to 51 percent between 1970 and 2010, and the median incomes of these  households fell 5 percent.

Where has the middle class held its own in recent decades? Well, in Denmark and France, among other countries. The country with the largest middle class according to the ILO’s calculations is Norway, where about 70 percent of the population rate as middle class.

In Norway, about 70 percent of the nation rates as middle class. In the United States, only 52 percent.

In the United States today only about 52 percent of the population can claim middle class status.

The World of Work report concludes that the middle class in the United States and around the world is suffering from “long-term unemployment, weakening job quality, and workers dropping out of the labour market altogether.” Things have been bad for a long time, but the recession has made them far worse.

The ILO, founded in 1946, now operates a specialist agency of the United Nations. The world’s employers and workers are equally represented on its governing board, alongside the representatives of 28 governments, including the United States government.

Different international organizations use different data sources for comparing inequality levels across countries. The ILO World of Work report uses raw data from the Census Bureau for the United States and from Eurostat for European countries.

All these sources agree that income inequality has widened more in the United States than in other developed countries. The ILO report finds a much larger difference than other organizations, such as the OECD. One reason for the difference: As a UN organization, the ILO is committed to using data from official sources like the U.S. Bureau of the Census and published, peer-reviewed scientific journal articles.

Other organizations like the OECD and private think tanks make their own estimates of national inequality levels using data that may not be publicly available and methodologies that may not be transparent or audited.

Rising inequality is not inevitable. The rich are not winning everywhere.

According to the official data compiled by the ILO and documented in the World of Work report, only South Africa and about a dozen Latin American countries have higher levels of inequality than the United States.

In nearly all of these countries inequality appears to be either stable or falling. Out of a total of 57 countries studied by the ILO, 31 developing and 26 developed, only one — the United States — has a level of income inequality both high and rising.

This simple fact — that only one nation has inequality both “high and rising” — shows that high and rising inequality is not inevitable. The rich are not winning everywhere, just as the rich have not always won in the United States.

We can have sensible policies that reduce inequality and bolster the middle class. The ILO suggests that we prioritize employment growth over budget cuts, increase public investment to make up for a lack of private investment, and raise taxes on unearned income from financial transactions.

The folks at the ILO are smart enough to understand that the reasons our governments don’t give us good, pro-people policies are not technical or economic, but political and ideological.

“Against mounting evidence,” the ILO concludes, “a fundamental belief persists in some quarters that less regulation and limited government will boost business confidence, improve access to international financial markets, and increase investment, although these results have not been evident.”

The empirical evidence says that we can reduce inequality and bolster the middle class by putting people back to work. But that will take government action. And government action is the one thing we don’t seem to have.

 

Salvatore Babones is a senior lecturer in sociology and social policy at the University of Sydney and an associate fellow at the Institute for Policy Studies.

 

Why Major Newspapers & Corporations Run Fake Job Ads To Avoid Hiring American Workers

In Uncategorized on February 3, 2012 at 2:36 pm

Oldspeak: Behold! The fruits of globalization! “Instead of being about talent, H-1B visa is about importing cheap labor. There’s an insidious way that the high-tech industry denies jobs to US citizens. It’s called the H-1B visa, which allows America’s technological firms – and other specialized employers – to bring in foreign employees, frequently at a lower wage package than might be paid to an individual with the same qualifications who is an American citizen. There are many arguments against the program, primarily the allegation that there is generally no actual shortage of US citizens with high-tech skills for the work done by H-1B visa holders. After the H-1B workers are sent back to their native nations, there are reports that they are rehired by US companies abroad to start offshore high-tech offices that move more US jobs overseas. In short, the H-1B visa could be seen as an outsourcing training program at the expense of highly skilled US professionals.” I wonder if Obama’s “Jobs Czar” GM CEO Jeffery Immelt is aware of this stealth job outsourcing sector of the economy. As CEO of a an American multinational corporation that employs 82% of its workforce outside the U.S., I would surmise, probably so. “Ignorance is Strength” “Profit Is Paramount”

Related Video

Immigration Attorneys Teach Corporations How To  Avoid Hiring Qualified Americans.

By Smoke & Mirrors:

Every Sunday, major newspapers, websites and corporations run fake job ads. Why? The goal is to prove that no qualified Americans are available, so that green cards can be secured for H1B workers (“highly-skilled” foreign workers from “high tech” to architects to nurses and Kindergarten teachers).

The claim is H-1B is a remedy for “labor shortages” and as a means of hiring “the best and the brightest” from around the world. The reality is it’s all about cheap labor.

The fundamental reason for the H1B Visa program, created in 1990, is to substitute cheap, imported, supposedly “skilled” (equivalent to American high school degree)  labor for more expensive American labor. The employer, who reaps a ton of tax advantages, doesn’t have to pay medical benefits, overtime, social security, etc., can also force the departing US worker to train their foreign replacement.  The problem is not lack of enforcement or fraud. Instead, the problem is gaping loopholes in the law.

Congress has allowed the expansion of importation under all VISA programs. 125,000 work authorized visas per month. This includes green cards, L-1, H1-b, H2-b etc  and the state hands out about 320K J-1 student work visas yearly.

Body Shops:

According to Civil Defense Attorney James Otto, who poses the question: “Whether the U.S. should allow the replacement of U.S. workers with foreigners imported under the several visa programs and should Government hire foreigners in stead of U.S workers?”, there are eight main body shops which bring in foreign workers to take American jobs. One body shop, Infosys, faces a lawsuit by former employee Jack Palmer over charges that it abused US visa programs. Per the Economic Times of India “The Infosys charges illustrate the growing conflict between the desires of multinational corporations to source cheaply (even if “cheap” has been mismeasured by not not being adjusted for risk) and what actions need to take place at a country level to make sure these very same multinationals have decent market for their goods.”

On December 7, 2011, Secretary of State Hillary Clinton, through the U.S. Embassy in India, announced that the State Department has authorized the U.S embassy to allow the admission of a limitless number of foreign workers into the U.S. to take jobs that millions of unemployed Americans could and would do.

The practical implications of the State Department’s conduct is that every U.S employer can now hire as many foreign workers as they desire to replace all American workers.

So even jobs that require face to face work are not safe from “outsourcing” because of “importing”.

Of course, this is no more the fault of the imported foreign nationals than it is the fault of the workers employed in sweatshops overseas.  The corporations treat them horrendously.  While displacing American workers, the goal is to reduce the salary level to a point where they can get qualified professional American workers at the same cheap price. Just one more government policy that result in We the People suffering in order that corporate profits soar.

Hi-Tech US Corporations Deny Skilled American Workers Jobs Through Abuse of Visa Loophole

By Mark Karlin @ BuzzFlash:

A short time ago, BuzzFlash at Truthout ran a commentary on how US global corporations don’t give a hoot about increasing jobs in America.

In it, we included a section about how Silicon Valley high-tech companies, particularly Apple, use overseas contractors to manufacture their latest technological consumer products. It has been documented that some of these contractors create such harsh conditions and pay such low wages that workers have been driven to suicide, as The New York Times and other publications have detailed.

 

In a two-part Times expose, an Apple executive claimed: “We [Apple] don’t have an obligation to solve America’s problems.” That was in response to Apple shipping so many potential US jobs overseas to these slave-wage sweatshops; e.g., “90 percent of the parts of an iPhone are made outside the U.S.”

But there’s another insidious way that the high-tech industry denies jobs to US citizens. It’s called the H-1B visa, which allows America’s technological firms – and other specialized employers – to bring in foreign employees, frequently at a lower wage package than might be paid to an individual with the same qualifications who is an American citizen. There are many arguments against the program, primarily the allegation that there is generally no actual shortage of US citizens with high-tech skills for the work done by H-1B visa holders.

President Obama appeared blindsided by a question on a Google Plus interactive town hall the other day from a woman whose husband had been laid off by Texas Instruments:

Jennifer Wedel was the second to question Obama, and the four-minute exchange was among the most memorable of the 50-minute online event.

“My question to you is to why does the government continue to issue and extend H-1B visas when there are tons of Americans just like my husband with no job?” she asked.

Obama offered that industry leaders have told him that there aren’t enough of certain kinds of high-tech engineers in America to meet their needs. Jennifer Wedel interrupted him to explain that that answer didn’t match what her husband is seeing out in the real world.

“Jennifer, can I ask what kind of engineer your husband is?”

“He’s a semiconductor engineer,” she told the president, who seemed genuinely surprised.

“If you send me your husband’s resume, I’d be interested in finding out exactly what’s happening right there,” he told her. “The word we’re getting is somebody in that high-tech field, that kind of engineer, should be able to find something right away. And the H-1B should be reserved only for those companies who say they cannot find somebody in that particular field.”

Of course, the high-tech companies are telling the White House and Congress that they can’t find US citizens for the H-1B jobs, but many critics argue that many high-tech companies hire H-1B workers without even offering the positions to Americans. On top of that, after the H-1B workers are sent back to their native nations, there are reports that they are rehired by US companies abroad to start offshore high-tech offices that move more US jobs overseas. In short, the H-1B visa could be seen as an outsourcing training program at the expense of highly skilled US professionals.

It was nice of the president of the United States to offer his personal job placement services to Jennifer Wedel’s husband, but it’s a bit disturbing that the White House appears to have fallen for the Silicon Valley canard.

When it comes to the H-1B visa, it’s the same old story: follow the profits.