April 24, 2024

Bits Blog: Tech Pushes to Keep Its Spoils in Immigration Bill

Steve Case, co-founder of America Online and now chief executive of the investment firm Revolution, spoke about immigration reform outside the White House on Tuesday.Charles Dharapak/Associated Press Steve Case, co-founder of America Online and now chief executive of the investment firm Revolution, spoke about immigration reform outside the White House on Tuesday.

Keen to hold on to its winnings in a landmark Senate immigration bill, the technology industry this week put on what one lobbyist called “a full court press” on Capitol Hill, dispatching executives and entrepreneurs to buttonhole lawmakers and rallying people in the industry to dispatch e-mails, telephone calls and Twitter messages to Congress.

Human resource department heads from eight of the country’s largest technology companies popped into the offices of more than a dozen members of Congress. A new group called Engine Advocacy, which has focused on a so-called start-up visa for foreign entrepreneurs, sent its representatives to the Hill and set up a new online platform, called www.keepushere.org, to encourage techies to send Twitter posts to members of Congress. And yet another industry-led coalition, called Partnership for a New American Economy, and supported by New York City’s mayor, Michael Bloomberg, was rallying supporters to aim at crucial senators, state by state, to support the bill with a “virtual march.”

The efforts all point to a wave of unprecedented effort by Silicon Valley firms to make sure the overhaul of the federal immigration law goes in their favor. The omnibus bill, which arrived on the full Senate floor this week after intense negotiations in the Judiciary Committee, contains several provisions directed specifically at the technology sector. It makes it easier for foreign students who get science and engineering degrees at American universities to get permanent residency, creates a new temporary visa for entrepreneurs, and in the most contested clause, vastly expands how many temporary contract workers can be brought into this country under so-called H-1B visas, while also raising the minimum wages they must be paid.

The delicate political agreement could still fall apart, and for Silicon Valley, the temporary work visas expansion is by far the most delicate piece. Labor groups say the law should require these companies to hire Americans first. Industry groups call that undue regulatory interference. Both sides have tried to muster evidence to back their claims. And this week, the industry upped the ante by bringing human resources managers directly to Washington to persuade Congress of their need to bring in foreign workers to fill job openings. Organized by the Information Technology Industry Council, a trade group that includes companies like Apple and Oracle, the hiring managers told lawmakers that the demand for talent is so competitive that they sometimes blatantly poach from one another.

There are likely to be more calls on the Senate floor to require companies to show that they are making efforts to hire Americans.

Meanwhile, Senator Jerry Moran, Republican of Kansas, introduced an amendment Wednesday to lower the investments that an entrepreneur would need to get permanent residency. The current bill requires a foreign entrepreneur to raise $100,000 in investments to gain a temporary visa and $500,000 for permanent residency. Among other things, the amendment would lower those thresholds: anyone who raises $250,000 in investments would be eligible for permanent residence.

The biggest push is yet to come. All eyes are on what the industry’s newest, most well-financed lobby, Fwd.us, backed by Facebook’s Mark Zuckerberg, will do next. It has stepped into the immigration fight with expensive television advertisements for key Republicans who backed the immigration bill in the Senate Judiciary. Those ads included a television spot that praised the Keystone XL pipeline, a pet project of key Republican senators, and it cost Fwd.us support from some of its backers in Silicon Valley. It remains to be seen what kinds of political advertisements the group will bankroll next, and who they will back.

Article source: http://bits.blogs.nytimes.com/2013/06/14/tech-pushes-to-keep-its-spoils-in-immigration-bill/?partner=rss&emc=rss

It’s the Economy: Do Illegal Immigrants Actually Hurt the U.S. Economy?

These days, Chan helps skilled (and fully documented) carpenters, electricians and stucco installers do their jobs by carrying heavy things and cleaning the work site. For this, he earns up to $25,000 a year, which is considerably less than the average entry wage for New York City’s 100,000 or so documented construction workers. Chan’s boss, who spoke on the condition of anonymity, said that unless he learned a specialized skill, Chan would never be able to move up the income ladder. As long as there are thousands of undocumented workers competing for low-end jobs, salaries are more likely to fall than to rise.

As Congress debates the contours of immigration reform, many arguments have been made on economic grounds. Undocumented workers, some suggest, undercut wages and take jobs that would otherwise go to Americans. Worse, the argument goes, many use social programs, like hospitals and schools, that cost taxpayers and add to our $16 trillion national debt. Would deporting Pedro Chan and the other 11 million or so undocumented workers mean more jobs, lower taxes and a stronger economy?

Illegal immigration does have some undeniably negative economic effects. Similarly skilled native-born workers are faced with a choice of either accepting lower pay or not working in the field at all. Labor economists have concluded that undocumented workers have lowered the wages of U.S. adults without a high-school diploma — 25 million of them — by anywhere between 0.4 to 7.4 percent.

The impact on everyone else, though, is surprisingly positive. Giovanni Peri, an economist at the University of California, Davis, has written a series of influential papers comparing the labor markets in states with high immigration levels to those with low ones. He concluded that undocumented workers do not compete with skilled laborers — instead, they complement them. Economies, as Adam Smith argued in “Wealth of Nations,” work best when workers become specialized and divide up tasks among themselves. Pedro Chan’s ability to take care of routine tasks on a work site allows carpenters and electricians to focus on what they do best. In states with more undocumented immigrants, Peri said, skilled workers made more money and worked more hours; the economy’s productivity grew. From 1990 to 2007, undocumented workers increased legal workers’ pay in complementary jobs by up to 10 percent.

I saw this in action when Chan took me to his current work site, a two-story office building on Coney Island Avenue. The skilled workers had already installed wood flooring in a lawyer’s office and were off to the next job site. That left Chan to clean up the debris and to install a new toilet. As I looked around, I could see how we were on one end of an economic chain reaction. Chan’s boss no longer had to pay a highly skilled worker to perform basic tasks. That lowered the overall cost of construction, increasing the number of jobs the company could book, which meant more customers and more money. It reminded me of how so many restaurants operate. Without undocumented labor performing routine tasks, meals, which factor labor costs into the price, would be more expensive. There would also be fewer jobs for waiters and chefs.

Earlier that day, I was reminded of another seldom-discussed fact about immigrant life in the United States. Immigrants spend most of the money they make. Chan had broken down his monthly expenses: $400 a month in rent, another $30 or so for gas, electric and Internet. He sends some money home and tries to save a few thousand a year in his Citibank account, but he ends up spending more than $10,000 annually. That includes the $1,400 or so he pays the I.R.S. so that he can have a taxpayer I.D. number, which allows him to have a credit score so that he can rent an apartment or lease a car.

Article source: http://www.nytimes.com/2013/02/17/magazine/do-illegal-immigrants-actually-hurt-the-us-economy.html?partner=rss&emc=rss

You’re the Boss Blog: This Week In Small Business: Leave the Building

Dashboard

A weekly roundup of small-business developments.

What’s affecting me, my clients and other small-business owners this week.

The Big Story: Immigration Reform

A bipartisan group of senators reveals an immigration reform plan, and President Obama backs “start-up visas” for foreign-born tech entrepreneurs. One blogger says it’s a good plan for small businesses. Beth Goodbaum hopes it will boost high-skilled manufacturing. Here are five things economists know about immigration. Ezra Klein says that to fix the economy we need to fix immigration. Kid President gives a pep talk.

The Other Big Story: G.D.P. Contracts

A decline in gross domestic product means the economy shifted into reverse in December. Joe Weisenthal says it’s because of the big drop in military spending. The White House blames lower government spending overall. John Nolte disagrees. This chart sums up the decline. The Federal Reserve continues its stimulus plan, and Evan Schnidman congratulates the Fed on reaching its $3 trillion benchmark. Bob McTeer says “it’s just a number.” Some prominent economists argue that our deficits are not the real problem. Mark Thoma urges an investment in infrastructure as a way to reduce long-term debt.

The Economy: A Five-Year High

Texas manufacturing expands, manufacturer optimism increases, and Gallup says weekly optimism surges to a five-year high. Home prices continue to rise and household debt has fallen by $833 billion since 2008. Personal income increases the most in eight years and consumer spending is up slightly. But the Conference Board’s Consumer Confidence Index is back down to 2011 levels, and some are blaming tax increases. Orders for durable goods increased, but Doug Short is more concerned about core orders. A popular index finds small-business revenue is falling but employment rising. ADP says there were 192,000 private jobs added to payrolls in January but unemployment claims jumped and the unemployment rate remained unchanged. John Elkington and Charmian Love look at the ways capitalism is changing to make a better world. And Volkswagen says everything will be all right.

Your People: Leave the Building

Erin Hatton laments the rise of the permanent temp economy. Fewer small businesses are offering employee benefits. Ken and Scott Blanchard explain how to get your team emotionally engaged. Margaret Heffernan suggests ways to make employees more creative, including: “Leave the building.” Russ Anderson has tips for designing your home workplace. Facebook’s Sheryl Sandberg says employers should ask female employees if they plan to get pregnant. This infographic shows how brilliant women make their businesses bloom. Lebron James tackles a fan who sinks a $75,000 shot. S.N.L. says YOLO, and a surfer may have ridden a 100-foot wave.

Management: Pricing

Steve Woods explains how big businesses are fueling small-business growth. Nadia Goodman suggests four strategies to sharpen your focus. Jim Connolly summarizes what every business owner needs to know about prices and fees: “Your prospective clients don’t care that you need to earn X every month. They care that the value they receive from you is greater than the price.” Ben Yoskovitz lists six things you need in order to pivot successfully. Seth Godin explains why small businesses fail. Intuit grants a small-business owner’s wish. Cats kill billions of creatures every year.

Starting Up: A New Incubator

Donna Harris reports on new start-up communities. A start-up that makes thermostats is worth $800 million. Taylor Soper lists 10 social media tools every start-up should have. The New York Times introduces a start-up incubator. This Web site lets you compare start-up salaries and equity, and this is how two undergraduates went from forever alone to thousands in sales. Get ready: mantyhose (a.k.a. brosiery or guylons) is headed our way.

Marketing: Google Takes Second

Google+ is now the No. 2 social media site for active users, and this tool helps bad spellers. Facebook shows that a mobile strategy is mandatory. Chris Garrett says the secret element of successful marketing is momentum. Rohit Bhargava explains how great brands rethink their expiration dates. Bob Phibbs offers five ideas to market your services and products. Rhonda Campbell has suggestions for marketing a successful business event. Penelope Trunk explains how to ask for help. Successful sales representatives have moderate temperaments.

Retail: Mom And Pop Are Back

After getting crushed by big-box stores during the 1980s and 1990s, mom-and-pop shops are enjoying something of a rebirth. Barnes Noble learns that it pays to be small. Most retailers are not expected to charge extra when customers use their credit cards. Foursquare courts small-business owners with a new mobile app, Intuit announces new technologies small businesses will use to pay their bills, and both Angie’s List and Verizon announce collaborations with mobile payment service Square. Meanwhile, the intrigue continues at Downton Arby’s.

Finance: Save on Expenses

Chase tops $20 billion in 2012 small-business loans, and Bank of America’s chief tells his employees to give customers better service. Carlo Pandian has suggestions for saving on common expenses. Juan M. Sánchez and Emircan Yurdagul explain why corporations are holding so much cash. Scott Wolfe Jr. explains what a mechanics lien is and how it can help construction businesses collect. Here are five principles to follow when buying a business. Acquisitions of private tech companies are up, and Karen Klein looks into what’s driving the spike.

Red Tape Update: Getting Squeezed

James Pethokoukis says not to expect tax reform anytime soon. If you’re filing your W-2s late, you may suffer penalties. Make sure to ask these questions before hiring your new tax preparer. The Internal Revenue Service is hiring new employees faster. Here are five reasons a small business should incorporate. These small businesses are being squeezed by local regulations. A new site helps small businesses track and comment on proposed regulations.

Health Care Update: Good Times

The White House reminds small businesses of the things you need to know about the Affordable Care Act, and the Small Business Administration releases a health care Web site. Paul Christiansen says that to outsmart “Obamacare” you must “go protean.” The Angry Bear sums up the future of your health insurance premiums. Some experts see good times ahead for small businesses under health care reform. The panel charged with helping devise solutions to the nation’s health care workforce crisis is having a workforce crisis of its own. Aaron Carroll believes that being a doctor is still a great gig.

Around The Country: Thank You!

A new competition from Grow America awards $35,000 to innovative small businesses. An entrepreneur introduces a campaign to thank small businesses. A well-known restaurant chain releases an entrepreneurial challenge. Colleges in Texas and Pennsylvania start entrepreneurial programs. Entrepreneurs in the state of Washington are looking to cash in on cannabis, and a small business in Portland, Ore., wants to reinvent the kiln. A company near Philadelphia gets into the slippery business of shipping eels, and a Startup Weekend is planned for Honolulu. A new analysis from Atlas Van Lines finds that for the seventh consecutive year, Washington, D.C., had the highest percentage of inbound moves and Wyoming had the highest percentage of people moving out. A scandal grows in higher education. North Dakota struggles to cope with its oil-boom prosperity. Noah Smith says it’s going to be a whole new world for solar energy. The wind industry has a record year.

Around The World: $217 in the Bank

Iceland teaches a few lessons on how to solve a banking crisis. France’s labor minister says the country is “totally bankrupt.” Zimbabwe has $217 left in the bank. South Korea leads the world in per capita plastic surgery. Charles and Camilla take a ride on the tube. Retail sales in Germany decline. Vladimir Putin hires Boyz II Men to promote Russian fertility. Canada’s G.D.P. increases. David Beckham pledges his salary to charity. These are the top 10 ways to tell if you’ve been hacked by the Chinese.

Technology: Seven Shows For Geeks

These three start-ups are eager for the release of the BlackBerry 10, and this is everything you need to know about the new BlackBerrys. Thorin Klosowski says that you don’t need to give up your smartphone; you just need to change how you use it. Amazon dominates the worldwide Android tablet market. Justin Kownacki explains why “The Avengers” is actually the ultimate explanation of geek culture, and a 29-year-old game developer lists his seven favorite TV shows for geeks and nerds. Microsoft signs a huge deal with the Department of Defense and releases a new cloud-based version of Office. Here are 11 tech women to watch in 2013. Here are five innovative tech solutions for common small-business problems. Here’s a guide to this year’s crop of 3D printers. And in what was just another week in the cloud, Twitter, Amazon and Facebook all suffered outages.

Tweet Of The Week:

@justinwolfers: Underneath the bad GDP report, we see solid growth in consumption and investment. Actually, it looks like private spending was humming along.

The Week’s Bests:

Lewis Edward explains why storytelling is so important in small-business sales: “The best professors that I ever had were ones which engaged the class into the discussion by incorporating real examples into their teaching. By storytelling, my instructors were not only helping me learn and retain the information but also making me enjoy doing so. When explaining how your business can help new clients, engaging them with a good story will prove much more advantageous than simply lecturing them on the benefits.”

Andrea Simon offers six ideas for turning innovation into an actuality, including: “Get out of your office, often, and go explore how people are using your products. PG requires their brand managers to get out of their offices and spend time with customers who are actually using their products. What does this do? Try spending a day in the life of your customer and see what you could learn about their pain points, challenges and opportunities where you could play a role in helping their business grow.”

This Week’s Question: Will immigration reform help your business?

Gene Marks owns the Marks Group, a Bala Cynwyd, Pa., consulting firm that helps clients with customer relationship management. You can follow him on Twitter.

Article source: http://boss.blogs.nytimes.com/2013/02/03/this-week-in-small-business-leave-the-building/?partner=rss&emc=rss