Thread: Greenspan - American Skilled Workers Are Paid Too Much

Greenspan - American Skilled Workers Are Paid Too Much
From Dick Eastman
olfriend@nwinfo.net
3-22-7

Alan Greenspan says our skilled workers are paid too much -- and recommends we open a "signficant window of skilled workers" to come to the US and eliminate the remaining concentration of higher pay for skilled jobs in the American workforce -- equalizing wages with the unskilled workers. Greenspan would apparently like to see doctors and technicians make what burger flippers are making.

From:
News@JobDestruction.info
Subject: Greenspan's solution for income inequalities


JOB DESTRUCTION NEWSLETTER No. 1660
3-21-7

Alan Greenspan is worried about income inequalities in the U.S. But before you jump up with joy that Greenspan is finally speaking out against the skyrocketing salaries of CEOs, hold your celebrations for another time!

Greenspan's big worry is that "skilled workers" get paid way too much compared to the rest of our population. Judging by Greenspan's comments, when he talks about "skilled workers" he isn't talking about CEOs and other assorted corporate fat-cats that earn multi-million dollar salaries -- he is probably talking about you.

Give Greenspan credit for one thing -- he not only identifies our national problems he offers 'solutions'! Of course, if you happen to be a skilled worker, Greenspan's solution won't sound too appealing. The hero of the corporatocrats and plutocrats wants to distribute your income into the hands of needy billionaires by using H-1B visa 'skilled workers' to knock you off your haughty middle-class pedestal. Clever, huh?


"Our skilled wages are higher than anywhere in the world," he said. "If we open up a significant window for skilled workers, that would suppress the skilled-wage level and end the concentration of income."

Greenspan sure understands how the H-1B visa works. Almost every politician says that H-1Bs aren't cheaper because these imported skilled workers get paid prevailing wages.

Good ol' Greenspan cuts right through all the B.S. and gives the honest reason why employers love H-1B foreign workers -- THEY ARE CHEAPER! He even explains why they are cheaper -- it's due to an effect that almost no politician, reporter, or union leader seems to acknowledge -- the law of supply and demand in the labor market.

"The former Fed chief said that increasing the number of immigrants with sought-after skills would increase the labor supply of these workers in the United States and hold down the wage gains of all workers with these skills."

For those of you who are activists who speak to the media, politicians, or pundits, I highly recommend quoting Alan Greenspan whenever somebody says that H-1B isn't used to cut salaries.


__________


Greenspan - Let More Skilled Immigrants In
By Bloomberg News
3-14-7

WASHINGTON -- Former Federal Reserve chairman Alan Greenspan said allowing more skilled immigrants to work in the United States would help keep the income gap from widening.

Inequality of incomes is the "critical area where capitalist systems are most vulnerable," Greenspan said yesterday in Washington at a conference on maintaining the competitiveness of US capital markets convened by Treasury Secretary Henry Paulson. "You cannot have a system that we have unless the people who participate in it believe it is just."

Allowing more skilled workers into the country would bring down the salaries of top earners in the United States, easing tensions over the mounting wage gap, Greenspan said.

"Our skilled wages are higher than anywhere in the world," he said. "If we open up a significant window for skilled workers, that would suppress the skilled-wage level and end the concentration of income."

Income inequality has risen in the past three decades.

Kathleen Newland, director of the Migration Policy Institute, a Washington think tank, said she was skeptical of Greenspan's proposal. "In theory, increased skilled immigration should help contain wage rises at higher levels, but there is little empirical evidence," she said. "If you want to reduce political concern, it would be better to deal with the problem by helping to raise the wages of the lowest earners, by helping to improve productivity and raising the minimum wage."

________

Greenspan's Inequality Fix: Free Trade For Lawyers And Doctors


Tell you one thing, Alan Greenspan is way more fun now that he's no longer helming the Federal Reserve. One day he's telling rapt audiences that a recession is possible -- helping roil global financial markets in the process -- the next day he's actually giving odds. (About 33 percent, if you're keeping track.)

Then there are these comments on solving perceived income inequality offered up by The Maestro at the Treasury Department's competitiveness conference earlier this week. Greenspan's solution to America's wage disparity is thus: "Our skilled wages are higher than anywhere in the world. If we open up a significant window for skilled workers, that would suppress the skilled-wage level and end the concentration of income."

Now this may seem like a wacky solution, but if you are a free trader, it makes sense. After all, less-skilled and less-educated workers, primarily in the manufacturing industry, have been subjected to direct competition with lower-paid workers overseas. In return, the United States has received less-expensive goods at big box stores like Wal-Mart and Costco. (Eventually, of course, displaced workers should be retrained for higher-value-added work.)

Likewise, liberalizing trade for professional services -- such as medicine and law -- might not only suppress the dramatic income increases in those professions, as Greenspan suggests, but also make them more affordable. As economist Dean Baker, co-director of the Center for Economic and Policy Research, writes in The Conservative Nanny State:

"Trade pacts have done little or nothing to remove the extensive licensing and professional barriers that prevent foreign doctors, lawyers, economists, and journalists from competing on an equal footing with their counterparts in the United States.

If U.S. trade negotiators approached the highly paid professions in the same way they approached the auto industry ... they would also be asking the trade negotiators from Mexico,

India, or China what obstacles prevent them from sending hundreds of thousands of highly skilled professionals to the United States ... In fact, the exact opposite happens. In 1997, Congress tightened the licensing rules for foreign doctors entering the country because of concerns by the American Medical Association and other doctors' organizations that the inflow of foreign doctors was driving down their salaries. As a result, the number of foreign medical residents allowed to enter the country each year was cut in half.

If free trade in physicians brought doctors' salaries down to European levels, the savings would be close to $100,000 per doctor, approximately $80 billion a year. This is 10 times as large as standard estimates of the gains from NAFTA."

And just think of the productivity benefits to the American economy if all those generations of future lawyers instead became engineers or industrial designers or some such. Of course, not everyone is thrilled with this possible solution. Here is what Mark Krikorian, executive director of the Center for Immigration Studies had to say about Greenspan's solution in The Corner, National Review magazine's group blog today:

"So, what's [Greenspan's] solution? Flood the skilled labor market with immigrants! You see, since immigration lowers wages, massive importation of skilled workers would drive down their wages and, presto, no more income gap! In his words ... Anyone want to run for office on that platform? Anyone? Anyone? Instead, how about reducing inequality by cutting immigration overall, so we stop flooding the low-skilled labor market, and let blue-collar wages increase? Think that would be a better way to shore up political support for capitalism among the poor?"

http://www.usnews.com/usnews/biztech/ca ... free_1.htm


The Dismal Science
By Mark Krikorian

Now here's something only an economist could come up with. Alan Greenspan said at a conference this week that high levels of economic inequality are political problem, and he's right: "You cannot have a system that we have unless the people who participate in it believe it is just." Too much concentration of income at the top undermines political support for the market and thus strengthens the hand of the socialists -- er, the Democrats.

So, what's his solution? Flood the skilled labor market with immigrants! You see, since immigration lowers wages, massive importation of skilled workers would drive down their wages and, presto, no more income gap! In his words: "Our skilled wages are higher than anywhere in the world. If we open up a significant window for skilled workers, that would suppress the skilled-wage level and end the concentration of income."

Anyone want to run for office on that platform? Anyone? Anyone? Instead, how about reducing inequality by cutting immigration overall, so we stop flooding the low-skilled labor market, and let blue-collar wages increase? Think that would be a better way to shore up political support for capitalism among the poor?

http://corner.nationalreview.com/post/? ... U5MWM2M2Q=


Greenspan Talks And Markets Don't Tumble
http://www.chippewa.com/articles/2007/0 ... iz980h.txt

http://www.rense.com/general75/skilled.htm

Sounds like Alan is working with Bill Gates.

When Greenspan agrees to rebate the outrageous sums he has been paid, a portion of it from the federal coffers, I'll consider looking into his claims. Until that time, he can take his "let them eat cake" attitude and shove it up his flatulent old arse.

Amen Crocket.

He seems to have forgotten about the "share the wealth" principle of economics.

The freaking Fat CEOs are the ones that are paid too much!!!!!!!!!
Cut thier damn salaries and pay the rest of the employees.

Dixie

If that idiot had any common sense, he would disappear into retirement before he gets the proverbial economic 2 x 4 across his unthinking and moronic blabbering face!

I have just about had it with the spewing of economic idiocy coming from this windbag of a Ponzi Scheme creator. He is the one directly responsible for the falling purchasing power of the U.S. Dollar. He is the one responsible for decimating the savings accounts of countless millions of Americans through 1 percent (or less) rates of return, when the historic natural interest rate is 3.5 percent! He is the one that created the stock market fantasies and tech bubble through EASY MONEY (inflationary policies).

AND YOU KNOW WHAT? HE WILL BE THE ONE YOU CAN HOLD ACCOUNTABLE FOR YOUR MORTGAGE FORECLOSURE ONCE YOUR HOUSE HAS TUMBLED TO 75 PERCENT OF IT"S ORIGINAL APPRAISED MORTGAGE VALUE!

And the next time you miss a credit card payment, or are late, you can thank Greenspam (correct spelling) for it--your interest rates are a direct result of his inflationary policies!

The problem with Mr. Greenspam is that no one sees him for the culprit he really is---everyone was focusing on the Ken Lays, and the Enrons of the past 20 years, when in reality they should have held this charlatan of a Central Banker to account for his horrific misdeeds!

The time of reckoning for the Greenspam policies is at hand---and he is writhing and sputtering to make offhanded remarks so that 75 percent of US Dollars held abroad don't inflate and collapse our economic system.

I've been on a TR quote kick as of late...

This one fits well within the context of the thread:

The things that will destroy America are prosperity at any price, peace at any price, safety first instead of duty first, the love of soft living and the get rich quick theory of life.
- T. Roosevelt

"Trade pacts have done little or nothing to remove the extensive licensing and professional barriers that prevent foreign doctors, lawyers, economists, and journalists from competing on an equal footing with their counterparts in the United States.

Maybe the reporters will stop this flag waving for immigration when their jobs are in jeopardy.

Originally Posted by gofer

"Trade pacts have done little or nothing to remove the extensive licensing and professional barriers that prevent foreign doctors, lawyers, economists, and journalists from competing on an equal footing with their counterparts in the United States.

Maybe the reporters will stop this flag waving for immigration when their jobs are in jeopardy.

I guess we will find out.

Sooo, are movie stars and pop stars (like Tom Cruise and Brittany Spears) considered "skilled workers". I mean, their salaries are ludicrous...$20 million a picture for Cruise....geez.

So do we import immigrant actors and pop stars to lower the ridiculous amounts of money celebrities earn???