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Archive for February, 2013

Who owns the Federal Government? Hint. It’s not the voters.

Think about this. The Federal Reserve bails out rich investors even as these investors are sucking the middle class financially dry. See Breakdown of the $26 Trillion the Federal Reserve Handed Out to Save Incompetent, but Rich Investors. Also, the Federal government has gone out of its way to bail out the one percent, while the rest of America wilts.

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Wall Street Senator Orrin Hatch and three other senatorial conspirators are launching another military style campaign to redistribute income from the 99 to the 1 percent. These leisure class warrior have proposed letting more and more high tech workers into the USA via the H1B visa. Their reasoning, regardless of the lies they tell us, is simple. Flood the market with workers, the supply of workers will exceed the demand, wages and salaries of those workers will drop, and the difference between the old wages and the new goes into the pockets of the 1 percent via higher dividends, share prices and soaring earnings.

These senators tell us there is a shortage of high tech workers in the USA and that we’ll be able to attract the best and the brightest in the world. These are lies. First of all, don’t assume that your well-being is dependent on US corporations getting these workers. There’s no connection, no livability symbiosis, between the health of publicly traded corporations and members of the 99 percent. Just look at the second great lie of these senators; There is no shortage of high tech workers in the US, but there is high unemployment among them, partially due to the H1B visa. The reality is that the biggest users of H1B visas are “all in the business of outsourcing and offshoring high-tech American jobs. Many of the jobs that went to H-1B workers should have instead gone to U.S. workers, but employers are not required to recruit them before applying for an H-1B, and can even replace their U.S. workers with H-1Bs. The top 10 H-1B employers were granted an astonishing 40,170 visas; nearly half the total annual quota. The table also shows each firm’s immigration yield: the ratio of permanent residence applications to new H-1B petitions for these companies. It is evidence of the companies’ intention to hire and keep their H-1B workers in the country permanently.

There are two reasons these firms hire H-1Bs instead of Americans: 1) an H-1B worker can legally be paid less than a U.S. worker in the same occupation and locality; and 2) the H-1B worker learns the job and then rotates back to the home country and takes the work with him. That’s why the H-1B was dubbed the “Outsourcing Visa” by the former Commerce Minister of India, Kamal Nath.

Rather than keeping jobs from leaving our shores, the H-1B does the opposite, by facilitating offshoring and providing employers with cheap, temporary labor – while reducing job opportunities for American high-tech workers in the process. The I-Squared Act does nothing to protect against this, while vastly expanding the size of a deeply flawed program that accelerates the offshoring of American high-tech jobs and reduces America’s future capacity to innovate.”

That’s precisely what Senator Hatch, the least patriotic of Americans, wants and he knows it. He want’s to lower the wages and salaries of most American citizens. On behalf of his Wall Street masters, like a well trained attack dog ordered to take a bite out of middle America, Hatch is proposing offshoring and outsourcing US jobs on behalf of the 1 percent. This is another one of his many income redistribution plans that redistributes income from the 99 to the 1 percent.

Top 10 users of H-1B guest worker program are all offshore outsourcing firms -Economic Policy Institute

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The Chairman of the Federal Reserve looked mighty uncomfortable Tuesday being grilled by Sen. Elizabeth Warren (D-MA), a former Harvard professor and economics expert who posed one very blunt question to him that many Americans have been asking for years: “When are we going to get rid of too big to fail? Then Bernanke lied to her. As chairman of the Federal Reserve, Bernanke’s primary job is to make the world safe for investment banks and rich investors. So the Fed will always be there to bail out these dumb people from their own foolish investment decisions. Click on the title above to get the complete report…

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A recent poll by the Pew Research Center shows that 71 percent of the US public favors raising the federal minimum wage. Nineteen states already have higher minimum wages. Fifty percent of Republicans also support an increase, as opposed to 47 percent opposed.

Wall Street is also against raising it. That’s because when wages go up, share prices go down. That’s because higher wages can cut into corporate profits in the short term. In the long term, however, rising real wages increase demand, spur sales, push up profits and create jobs. Recent studies show raising the minimum wage has a small impact on unemployment, most likely because it increases the demand for goods and services.

According to a study by the Economic Policy Institute, “The multiple positive effects that would result from a higher minimum wage are clear: It would boost the earnings of working families hardest hit by the Great Recession, spur economic growth, and create about 100,000 net new jobs. In an economic climate in which wage increases for the most vulnerable workers are scarce, raising the minimum wage to $9.80 by July 1, 2014, is an opportunity that America’s working families cannot afford to lose.”

Despite the positive impacts of a raise, on behalf of Wall Street, House Republicans will vote in goose step against any increase, as will some corporate Democrats.

Conversely, when wages go down, share prices go up. That’s good if you’re a member of the 1 percent, but it’s bad for the economy and the 99 percent in the long term. When real wages go down, so does the demand for goods and services. In the long run, corporate profits cannot be constantly raised, which is something that must occur in the long term, otherwise, the Ponzi Scam known as Wall Street would collapse.

As demand goes down due to the massive redistribution of income from the 99 to the 1 percent legislatively undertaken over the last 32 years by the federal government, Wall Street has had to invent new investment instruments that redistribute income from the 99 to the 1 percent. In the past, this has included bonds backed by home mortgages and credit default swaps, neither of which has been good for the economy.

So overall, an increase in the federal minimum wage will be a good thing (however tiny) for the vast majority of Americans, as well as for the economy. They’ll have more money to spend. Better yet, CEO’s and rich shareholders will possess less money with which to purchase politicians.

Click below for related links.

Study from the Economic Policy Institute

One study on the impact of raising the minimum wages

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