Category Archives: Business

Why Aren’t The H1-B Hogs Satisfied With The O-1 “Extraordinary Ability” Visa?

Business, Economy, IMMIGRATION

The excerpt is from my new, VDARE.Com column:

“[T]he O-1 visa

“…is a nonimmigrant status category for aliens of extraordinary ability in the sciences, the arts (including the television and motion picture industry), education, business, and athletics. This is an employment-related status that allows qualified aliens to live and work in the United States.. An O-1 petition is sponsored by an American employer.”

More significantly, there is no cap on the number of O-1 visa entrants allowed. Access to this limited pool of talent is unlimited. …

My point vis-à-vis the O-1 visa is this: The primary H-1B hogs—Infosys (and another eight, sister Indian firms), Microsoft, and Intel—are forever claiming that they are desperate for talent. But, in reality, they have unlimited access to individuals with unique abilities through the open-ended O-1 visa program…if they really wanted it. …

Theoretically, the H-1B program could be totally abolished and all needed Einsteins (and pin-up girls) imported through the O-1 program…they just need to demonstrate “extraordinary ability.”

The complete column: “Why Aren’t The H1-B Hogs Satisfied With The O-1 ‘Extraordinary Ability’ Visa? Oh, Wait A Minute…”

Hydra-Headed Commie Talking Heads

Business, Capitalism, Communism, Debt, Economy, Federal Reserve Bank, Inflation, Israel, Journalism, Media, Republicans

Last night I watched one of the many performances Stephen Moore and John Fund give on Glenn Beck’s show, talking up the bailout while making the obligatory noises about their free market credentials.

I wonder why Glenn Beck, whose instincts are generally good, and who disagreed with them, tolerates such obfuscation. Has Glenn done no research? Stephen Moore authored a book paradoxically titled Bullish on Bush: How the Ownership Society Is Making America Richer.

Here’s my truism, excerpted from “Bush & The Bailout Bandits”: “Bush’s ownership society, built as it was on quicksand, has metamorphosed into the bailout society.”

Is America ever going to fire its failed philosopher kings when they fail to predict anything?

Here is an excellent antidote (via LRC.Com) to the hydra-headed talking heads, exposing them for the philosophical commies they are. It’s written by the Canadian Austro-libertarian Martin Masse:

KARL’S COMEBACK

Martin Masse
Financial Post, September 30, 2008, FP13

In his Communist Manifesto published in 1848, Karl Marx proposed 10 measures to be implemented after the proletariat takes over power, with the aim of centralizing all instruments of production in the hands of the state. Proposal #5 was to bring about the “centralization of credit in the banks of the state, by means of a national bank with state capital and an exclusive monopoly.”

If he were to rise from the dead today, Marx might be delighted to discover that most economists and financial commentators, including many who claim to favour the free market, agree with him.

Indeed, analysts at the Heritage Foundation and Cato Institute, and commentators in the Wall Street Journal and in this very page, have made declarations in favour of the massive “injection of liquidities” engineered by central banks in recent months, the government takeover of giant financial institutions, as well as the still stalled $700-billion bailout package. Some of the same voices were calling for similar interventions following the burst of the dotcom bubble in 2001.

“Whatever happened to the modern followers of my free-market opponents?” Marx would likely wonder.

At first glance, anyone who understands economics can see that there is something wrong with this picture. The taxes that will need to be levied to finance this package may keep some firms alive, but they will siphon off capital, kill jobs and make businesses less productive elsewhere. Increasing the money supply is no different. It is an invisible tax that redistributes resources to debtors and those who made unwise investments.

So why throw this sound free-market analysis overboard as soon as there is some downturn in the markets?

The rationale for intervening always seems to centre on the fear of reliving the Great Depression. If we let too many institutions fail because of insolvency, we are being told, there is a risk of a general collapse of financial markets, with the subsequent drying out of credit and the catastrophic effects this would have on all sectors of production. This opinion, shared by Ben Bernanke, Henry Paulson and most of the right-wing political and financial establishments, is based on Milton Friedman’s thesis that the Fed aggravated the Depression by not pumping enough money into the financial system following the market crash of 1929.

It sounds libertarian enough. The misguided policies of the Fed, a government creature, and bad government regulation are held responsible for the crisis. The need to respond to this emergency and keep markets running overrides concerns about taxing and inflating the money supply. This is supposed to contrast with the left-wing Keynesian approach, whose solutions are strangely very similar despite a different view of the causes.

But there is another approach that doesn’t compromise with free-market principles and coherently explains why we constantly get into these bubble situations followed by a crash. It is centered on Marx’s Proposal # 5: government control of capital.

For decades, Austrian School economists have warned against the dire consequences of having a central banking system based on fiat money, money that is not grounded on any commodity like gold and can easily be manipulated. In addition to its obvious disadvantages (price inflation, debasement of the currency, etc.), easy credit and artificially low interest rates send wrong signals to investors and exacerbate business cycles.

Not only is the central bank constantly creating money out of thin air, but the fractional reserve system allows financial institutions to increase credit many times over. When money creation is sustained, a financial bubble begins to feed on itself, higher prices allowing the owners of inflated titles to spend and borrow more, leading to more credit creation and to even higher prices.

As prices get distorted, malinvestments, or investments that should not have been made under normal market conditions, accumulate. Despite this, financial institutions have an incentive to join this frenzy of irresponsible lending, or else they will lose market shares to competitors. With “liquidities” in overabundance, more and more risky decisions are made to increase yields and leveraging reaches dangerous levels.

During that mania phase, everybody seems to believe that the boom will go on. Only the Austrians warn that it cannot last forever, as Friedrich Hayek and Ludwig von Mises did before the 1929 crash, and as their followers have done for the past several years.

Now, what should be done when that pyramidal scheme starts crashing to the floor, because of a series of cascading failures or concern from the central bank that inflation is getting out of control? It’s obvious that credit will shrink, because everyone will want to get out of risky businesses, to call back loans and to put their money in safe places. Malinvestments have to be liquidated; prices have to come down to realistic levels; and resources stuck in unproductive uses have to be freed and moved to sectors that have real demand. Only then will capital again become available for productive investments.

Friedmanites, who have no conception of malinvestments and never raise any issue with the boom, also cannot understand why it inevitably leads to a crash. They only see the drying up of credit and blame the Fed for not injecting massive enough amounts of liquidities to prevent it.

But central banks and governments cannot transform unprofitable investments into profitable ones. They cannot force institutions to increase lending when they are so exposed. This is why calls for throwing more money at the problem are so totally misguided. Injections of liquidities started more than a year ago and have had no effect in preventing the situation from getting worse. Such measures can only delay the market correction and turn what should be a quick recession into a prolonged one.

Friedman – who, contrary to popular perception, was not a foe of monetary inflation, but simply wanted to keep it under better control in normal circumstances – was wrong about the Fed not intervening during the Depression. It tried repeatedly to inflate but credit still went down for various reasons. This is a key difference in interpretation between the Austrian and Chicago schools.

As Friedrich Hayek wrote in 1932, “Instead of furthering the inevitable liquidation of the maladjustments brought about by the boom during the last three years, all conceivable means have been used to prevent that readjustment from taking place; and one of these means, which has been repeatedly tried though without success, from the earliest to the most recent stages of depression, has been this deliberate policy of credit expansion. … To combat the depression by a forced credit expansion is to attempt to cure the evil by the very means which brought it about…”

The confusion of Chicago school economics on monetary issues is so profound as to lead its adherents today to support the largest government grab of private capital in world history. By adding their voices to those on the left, these confused free-marketeers are not helping to “save capitalism”, but contributing to its destruction.

*Martin Masse is publisher of the libertarian webzine Le Québécois Libre and a former advisor to Industry minister Maxime Bernier

[Further recommended reading is here, scroll down, please.]

Updated: Predicted Meltdown

Business, Communism, Economy, Government, Ilana Mercer, Inflation, Private Property, Socialism, The State

The brilliant Bob Higgs on the crumbling capital markets (read my comments following the “Snip”):

“The failure of Fannie Mae and Freddie Mac, setting in motion the biggest government bailout/takeover in U.S. history, brings a grim sense of fulfillment to competent economists. After all, what did people expect, that water would flow uphill forever?

This financial mega-mess is the same sort of event as the collapse of the USSR’s centrally planned economy, another economically unworkable Rube Goldberg apparatus that was kept going, more or less badly, for decades before it fell apart completely. Along the way, of course, famous (yet actually unsound) economists assured the world that everything was working out splendidly. As late as 1989, when the pillars were crumbling on all sides of the temple, Nobel Prize winner Paul A. Samuelson informed readers of his widely used textbook, “The Soviet economy is proof that . . . a socialist command economy can function and even thrive.”

In the future, we will see a similar breakdown of the U.S. government’s Social Security system, with its ill-fated pension system and its even more inauspicious Medicare system of financing health care for the elderly. These government schemes are fighting a losing battle against demographic realities, the laws of economics, and the rules of arithmetic. The question is not whether they will fail, but when—and then how the government that can no longer sustain them in their previous Ponzi-scheme form will alter them to salvage what little can be salvaged with minimal damage to the government itself.

Our political economy is rife with such catastrophes in waiting, yet the public always seems startled, and outraged, when the day of reckoning can no longer be deferred, and another apartment collapses in the state’s Hotel of Impossible Promises, loading onto the taxpayers more visibly the burden of sheltering the previous occupants.

Call it democracy in action or utterly corrupt governance; they are the same thing.

Each of these time bombs has at least one element in common: it promises current benefits, often seemingly without cost; but if it must acknowledge a substantial cost, it places that burden somewhere in the distant future, where it will be borne by somebody else. From the standpoint of society in general, every such scheme is a species of eating the seed corn. It satisfies the public’s appetite to consume something for nothing right now, with no thought for the morrow. It represents the height of irresponsibility by permitting people to live higher today than they can truly afford, financing this profligacy by borrowing recklessly and by taxing politically weak and ill-organized people in order to shower benefits on politically strong and well-organized special interests. …

The architecture of the Hotel of Impossible Promises is not arcane. All competent economists understand these things. Ludwig von Mises explained as early as 1920 why a centrally planned economy could not work as a rational system of allocating resources. The reasons why Social Security, especially its Medicare component, and many other such government programs contain the seeds of their own destruction have been explained time and again. Are the politicians who construct these structures really such idiots that they cannot understand the logic of what they are doing? Not at all. …”

[Snip]

The complete article is “Ticking Time Bomb Explodes, Public Is Shocked.” Read it. I disagree with the sentiment expressed in the last paragraph. Bob Higgs would find it hard to comprehend how stupid the corporate, political and academic elites truly are. This is the age of the idiot. Obama is an ass with ears. Ditto McCain. Take them at face value, Bob. Believe their idiocy. As hard as it may be for a man of your intelligence to grasp, they truly do not understand Mises and Hayek and Rothbard or even Friedman. The idea that misallocation of capital is inevitable in socialized systems is anathema to the incontinent legislators and the other cognoscenti. Psychologizing about their motives gives these intellectual tabula rasa more credit than they deserve. (Michael Rebmann of “North Buffalo Journal and Review” liked this rant.)

Update: I just saw CNN’s Campbell Brown, who, as I already noted, is not working with much, and her panel, laud the massive bailouts. Why? Because, as all agreed, the returns on this “investment” will be many times the investment. This is beyond rank utilitarianism. The concept of private property eludes Campbell and her commies. The risks in a bailout are socialized and the profits privatized. Theft is what this is all about–unconstitutional, criminal taking.

Update III: On Libertarians Who Dismiss The NRA (& ‘Heller’)

Business, Constitution, Individual Rights, Left-Liberalism And Progressivisim, libertarianism, Multiculturalism, Natural Law

Myron Pauli, a valued reader whose letters are always stimulating, has given in to the sin of abstraction so many libertarians are guilty of. (See the Comments Section of the previous
post.) The root of this error comes from being high on your own ideological purity. So high you walk around with a hangover that clouds clear thinking rooted in reality.

Such individuals have discovered libertarian theory (often from dubious sources), and have set about enforcing it with the zeal of soviet apparatchiks, instead of working with reality. Which is what the very flawed, non-ideological NRA does.

For example, the fact that the NRA has acquiesced to—or rather works around—licensing, causes libertarian purists to dismiss the NRA. This is silly, if not a non sequitur, given the enormous amount of good work the NRA does. And given the fact that libertarians have achieved precious little in this respect. Without the NRA and its formidable clout, there would be no Second Amendment rights in this country. The fact that they are hated by the Left is a notch on their Second Amendment scorecard. (But, as I said to Sean the other day, libertarians don’t share my visceral hatred of the left. Passionless people, for the most)

Myron’s particular argument goes as follows: Because the NRA is “suing private company Walt Disney for the ‘right’ to take their guns on Disney property,” they are useless, not to be supported, and, for good measure, let us call them props of the Republican Party who only pretend to recognize gun rights. More non sequiturs. (No evidence is offered for the accusation that the NRA doesn’t really recognize Second Amendment rights.)

The NRA’s ideas of private property are not my own. But, equally, very many libertarians reject my hard-core propertarian position. For example, lots of libertarians think the libertarian law should not countenance the right of a property owner to eliminate a home invader out of hand. (How many libertarians think Joe Horn is a hero?)

Liberty lovers, instead of being high on their own purity, should take a deep breath and work with reality. This does not mean compromising principles. With respect to the NRA, this implies recognizing and articulating its theoretical flaws but reconciling its realistic gains for liberty.

The NRA’s lack of libertarian purity on private property and their alliance with the GOP notwithstanding, they are a formidable force when it comes to their rather narrow mandate: Second Amendment rights.

Update I (July 13): Let’s see, in an imperfect, ideologically impure world, where corporations are second only to the state in their demands for compliance with diversity doxology, the cult of multiculti, and all manner of suppression–who do I root for; Walt Disney or the little guy with the gun?

It’s much like asking me who I support in the case of another of America’s leftist corporations, Pizza Hut, which sacked James William Spiers for defending himself during a delivery that was really an ambush. Writes blogger Big Dog:

“The details are pretty straight forward. A woman, an accomplice of a criminal, placed a [sic] order for a pizza. The delivery man, James William Spiers, attempted to deliver the pizza when he was confronted by a man who put a gun to his head. Spiers, who has a permit to carry a handgun, grabbed the assailant’s gun and pulled his own weapon. The attacker was shot three times.”

“When police arrived at the scene Spiers placed his hands in the air and dropped to his knees and told the police that he had both weapons in his pockets. So far no charges have been filed but Pizza Hut has suspended Spiers. The company has a policy against carrying a weapon, even for those who have a permit to carry one…”

Pizza Hut prefers for its innocent employees to die rather than defend themselves on the job. This is not the first time the company has followed through on this preference. Here’s a similar story.

Most Americans, who spend their days on the job, cannot carry to work. That rules out self-defense during a good part of the day. Even if workers leave the thing in the car—ill advised, of course—a colleague who discovers their “deviancy” might just tattle, and they risk being retrenched.

Corporations are not that different to government when it comes to rights. Yes, strictly speaking, in libertarian law, the former have a right to write the suspension of rights into their contracts, whereas the latter doesn’t. However, it must be obvious with who I sympathize given what I know of America’s corporate culture—extreme leftism, commitment to making the workforce as multicultural as possible (in the face of the misery and inefficiencies it breeds), a concomitant devotion to forced integration (or else); gay-centric propaganda and circulars routinely foisted on Christians, and a pervasive hostility to Christianity (while prayer rooms for Muslim workers are erected everywhere).

Update II: To those who conveniently “forget” my immutable position on property rights, sympathizing with the Davids in this story doesn’t imply, not even remotely, a support for litigation against the Goliaths. But then those who read this site know I’m a strict propertarian.

Update III (July 14): one of the more vigorous libertarian battles being waged in this country with a good degree of success is that over the Second Amendment. This is one natural right that Americans who want it upheld understand perfectly well. Yet on my blog, there has been a great deal of obfuscation and negation of the gains made to date. Instead of the loopy libertarians who’ve been referenced on BAB (the same loopy sorts dissed Heller Vs. The District of Columbia), let’s listen to some “heavy hitting” clear thinkers.

Randy Barnett is one of the sharpest, most original legal minds in the libertarian community (which is why I was overjoyed when one of my formulations jibed with his, unbeknown to both of us). Dave Kopel is formidable on the Second Amendment. He lives and breathes this jurisprudence and assisted in its litigation. (Imagine; someone who’s been in the thick of the fight, instead of standing on the sidelines dissing everyone.) Here they are on Reason Magazine Online:

RANDY BARNETT: “Justice Scalia’s historic opinion will be studied for years to come, not only for its conclusion but for its method. It is the clearest, most careful interpretation of the meaning of the Constitution ever to be adopted by a majority of the Supreme Court. Its analysis of the “original public meaning” of the Second Amendment stands in sharp contrast with Justice Stevens’ inquiry into “original intent” or purpose and with Justice Breyer’s willingness to balance an enumerated constitutional right against what some consider a pressing need to prohibit its exercise. The differing methods of interpretation employed by the majority and the dissent also demonstrate why appointments to the Supreme Court are so important. In the future, we should be vetting Supreme Court nominees to see if they understand how Justice Scalia reasoned in Heller and if they are committed to doing the same. Now if we can only get a majority of the Supreme Court to reconsider its previous decisions—or “precedents”—that are inconsistent with the original public meaning of the text.”

Randy Barnett is the Carmack Waterhouse Professor of Legal Theory at Georgetown University Law Center and author of Restoring the Lost Constitution: The Presumption of Liberty.

DAVE KOPEL: “Heller is a tremendous victory for human rights and for libertarian ideals. Today’s majority opinion provides everything which the lawyers closely involved in the case, myself included, had hoped for. Of course I would have preferred a decision which went much further in declaring various types of gun control to be unconstitutional. But Rome was not built in a day, and neither is constitutional doctrine.

For most of our nation’s history, the U.S. Supreme Court did nothing to protect the First Amendment; it was not until the 1930s when a majority of the Court took the first steps towards protecting freedom of the press. It would have been preposterous to be disappointed that a Court in, say, 1936, would not declare a ban on flag-burning to be unconstitutional. It took decades for the Supreme Court to build a robust First Amendment doctrine strong enough to protect even the free speech rights of people as loathsome as flag-burners or American Nazis.

Likewise, the Equal Protection clause of the Fourteenth Amendment was, for all practical purposes, judicially nullified from its enactment until the 1930s. When the Court in that decade started taking Equal Protection seriously, the Court began with the easiest cases—such as Missouri’s banning blacks from attending the University of Missouri Law School, while not even having a “separate but equal” law school for them. It was three decades later when, having constructed a solid foundation of Equal Protection cases, the Court took on the most incendiary racial issue of all, and struck down the many state laws which banned inter-racial marriage.

So too with the Second Amendment. From the Early Republic until the present, the Court has issued many opinions which recognize the Second Amendment as an individual right. Yet most of these opinions were in dicta. After the 1939 case of United States v. Miller, the Court stood idle while lower federal courts did the dirty work of nullifying the Second Amendment, by over-reading Miller to claim that only National Guardsmen are protected by the Amendment.

Today, that ugly chapter in the Court’s history is finished. Heller is the first step on what will be long journey. Today, the Court struck down the most freakish and extreme gun control law in the nation; only in D.C. was home self-defense with rifles and shotguns outlawed. Heller can be the beginning of a virtuous circle in which the political branches will strengthen Second Amendment rights (as in the 40 states which now allow all law-abiding, competent adults to obtain concealed handgun carry permits), and the courts will be increasingly willing to declare unconstitutional the ever-rarer laws which seriously infringe the right to keep and bear arms.
As the political center of gravity moves step by step in a pro-rights direction, gun control laws which today might seem (to most judges) to be constitutional will be viewed with increasing skepticism. The progress that the pro-Second Amendment movement has made in the last 15 years has been outstanding. As long as gun owners and other pro-Second Amendment citizens stay politically active, the next 15, 30, and 45 years can produce much more progress, and the role of the judiciary in protecting Second Amendment rights will continue to grow.”

Dave Kopel is Research Director at the Independence Institute, in Golden, Colorado. He was one of three lawyers at the counsel table who assisted Alan Gura at the oral argument on March 18. His brief for the International Law Enforcement Educators and Trainers Association was cited four times in the Court’s opinions.