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Showing posts with label Demographics. Show all posts
Showing posts with label Demographics. Show all posts

Wednesday, July 15, 2020

For The Last Five Years
They Continue to Wish We Were Dead

Today, July 15th, 2020 marks the fifth anniversary date for the first Intel Corp. massive layoff of the 21st century. 2015 also represents the year in which Intel Corp. lost its leadership position within the semiconductor industry, due to a continuous wave of operational flops and process-engineering disasters, most of them due to bad management decisions and a rising wave of mistrust between management and employees.

Intel Corp. 2015 Layoff Action
 Age Composition of Affected Employees

Intel Corp. management, under the leadership of CEO Brian Krzanich (BK) focused on lowering the cost of labor by laying off thousands of veteran employees, instead of fixing organizational and technological issues that plagued the company for many years. The company was unable to fix its high volume manufacturing (HVM) problems for chips manufactured in 14nm for longer than five years. The follow-up 10nm production line never matured into commercial viability. This type of phenomenon never happened at Intel Corp. at anytime in the past. Having the benefit of hindsight today, this colossal inability to deliver reliable silicon products, can clearly be attributed to the scarcity of technical and organizational leadership among the remainder of the company engineering workforce, following the 2015 and 2016 massive layoffs. 
 
Laying off more than 16,000 employees, many of them in senior grades with decades of experience under belt, was a very costly business move. Intel Corp. replaced experienced employees with much cheaper and inexperienced workforce. Company executives apparently had a notion that their veteran workforce was nothing but an easily replaceable commodity. The immediate result of the mindless mass layoffs created bad employee morale, lack of trust, led to operational chaos and penalized the company with enormous lack of productivity--a great deal of which still persists inside the company to this day.
 
In spite of external criticism of his actions, CEO Brian Krzanich continued to prove his leadership incompetence for a few more years of spiraling chaos, during which Intel Corp. lost its credibility as well as its world leadership position as a result of the company's inability to deliver on its promises to its customer base.  
 
Fighting the sinking reality of the semiconductor market slipping away, year after year, Intel Corp. expensive PR campaign to save face, met its eventual limits. Due to ever repeating lack of meaningful operational results, Intel Corp. Board took action and fired BK in June 2018.
 
To protect INTC stock value, the Board explained the firing of BK with a "Roger Stone style story" utilizing a sexy connotation that was meant to distract public attention from the incompetence of Intel Corp. C-Suite as well as the incompetence of the company Board of Directors itself.
 
Apparently egomania and greed can never be satisfied. Even after leaving his CEO position with the company, Krazanich himself is under SEC investigation for insider trading of Intel stock. Regrettably, as we have witnessed over the last decades, how U.S. Government agencies seem to operate more like "paper tigers" than "Rambo". Rich executives can continue to live the high life as long as they keep paying their "high shelf" high hourly rate lawyers.

Ex-Intel CEO Lists Lavish Silicon Valley Compound

Intel Corp. worst legacy is still lying ahead. In its hasty effort to restructure its workforce the company laid off thousands of older workers, as well as forced many more thousands of senior employees to retire under duress. By doing so, Intel Corp. management violated the civil rights of older workers ("older workers" defined as employees who are 40 year old or older). Such workers are classified by Federal regulations as a "protected class", which requires employers to take specific actions before laying them off.
 
Specific U.S. Employment Law rules and regulations were set in place to protect  employees aged 40+ from discriminatory practices. Most of such protection rules are defined in the Age Discrimination in Employment Act of 1967, otherwise known as the ADEA.
 
Although employers are allowed to lay off older employees, the ADEA specifically requires employers to follow employment practices meant to guarantee that older employees are not to be discriminated against during the whole course of their employment as well as during the hiring and/or firing process.

dhillon_scaled
Janet Dhillon - EEOC Chair

Members of PDX-TIE.ORG filed and brought forward substantial evidence that Intel Corp. knowingly violated the ADEA in many ways, during the course of Mr. Brian Krzanich rein as Intel Corp. CEO. Charges written by members of our organization (PDX-TIE.ORG), submitted and filed with the Federal government Equal Employment Opportunity Commission (EEOC) in 2016 are in full progress of investigations.
 
We recently received yet another confirmation that the EEO investigation is still in "active" state. It is already more than 4-1/2 years since our charges have been filed and the clock keeps ticking on the Federal investigation. Amazingly, Janet Dhillon, the Chair of the EEOC, appointed by President Donald Trump in May 2019, testified under oath in a hearing in front of congress:

It is the sad reality that too often, justice delayed is justice denied. Evidence can be  misplaced, and memories fade with the passage of time. The opportunity to quickly stop and remedy a discriminatory practice can also be lost – potentially to the detriment of other impacted employees. To ensure quality service, it is critical that private sector charges and federal complaints are handled promptly and fairly – and so we must work to reduce backlogs across all program offices.

Shall we take her for her word? Do words stated under oath inside the halls of the U.S. Congress, have a meaning if not translated into enforcement actions?

One of the advertised policies of the EEOC over the last few years was "working with employers", namely convince employers to police themselves, in matters associated with employees age discrimination in the workplace. In the words of EEOC Chair she is driving the EEOC to pursue a "Litigation Last" policy namely, avoiding law enforcement, seemingly at all costs to the U.S. Government. This type of "soft talk, self policing" methodology has been exercised extensively, by another Federal agency, the FAA. The results of such actions (or lack thereof) turned out to disastrously manifest their outcome in the Boeing 737MAX fiasco.
 
The result of forfeiting external supervision on large corporations and "letting the dogs guard the hen house" cost the lives of hundreds of innocent people and at the same time pushed the Boeing company to the brink of bankruptcy. There are very serious lessons to be learned from this story. Lack of external supervision and dereliction of duty on the part of Government Oversight, unavoidably leads to a situation where everyone, corporations, clients, employers and employees turn to become big losers.

With the above being said and judging from the "snail's pace" at which justice for older employees affected by the Intel Corp. layoffs is being pursued, many of us may be dead already, before Intel Corp. is brought to justice by the Federal Government. Many of us are older and form the most vulnerable segment of the U.S. population at risk for COVID-19 severe infections and ultimately death.
 
Clearly, the political and the corporate echelons would rather wait and see us (the "problem" in their view) vanish into oblivion, as more of our members meet their demise. With no proactive actions on the part of the U.S. Congress, and with the EEOC forfeiting their law enforcement actions, dereliction of duty continues to rule the day.

Latest unemployment Trend Charts
(click on image to enlarge)


The latest unemployment data report clearly demonstrates that the U.S. is in the middle of a major economic trough, following the COVID-19 pandemic. Under the circumstances, it is very likely that many workers, particularly those aged 40 and older, will never return to their original jobs. This situation presents employers with the perfect opportunity to "weed out" their most expensive employees, which in most cases are the most senior and experienced, namely "older", replacing them with younger and certainly "cheaper" workers. Past experience demonstrates clearly that commercial corporations that view their workforce as "replaceable" commodity, tend to fail "big time", while business entities that treat their employees as an "asset" tend to flourish. Look at IBM, GE, and of course Intel Corp.

It is important to note that in most companies, older employees serve as de-facto mentors to younger and less experienced employees. The value of mentoring has been proven to be a major contributing factor to the success of business. Clearly, with proper management policies, a good balance of employee diversity is not only required by employment laws--it actually contributes to cohesion of the workforce and increased productivity.

Unfortunately and to detriment of many companies, for the average C-Suite executive, having mostly inexperienced workers onboard, does not seem be an issue of great concern. By the time that the business begins experiencing serial operational failures after getting rid of its experienced workers, the executives have already harvested their mega bonuses and pulled their "golden parachute" cords to pursue "new opportunities"...

Intel Corp. serves as a perfect example of a company that "lost its soul" due to getting rid of its "experienced" workforce, while rewarding its egocentric executives with fat monetary rewards. It may have taken five years to note the destructive effect of the 2015/2016 massive layoffs; however, it is now widely recognized that the "Intel Empire" is collapsing from the inside, due to so called "cultural" problems. (see: Intel’s Culture Needed Fixing. Its C.E.O. Is Shaking Things Up. Robert Swan, who leads the world’s biggest chip maker, is pushing his 110,000 employees to confront internal problems more openly).

During these days when the world is facing a major pandemic, it may be convenient to ignore problems that could have made headlines in the past. However, it is futile to deny the demographic trends in the U.S., which clearly show the working population is getting significantly older.

Workforce-age Group Composition
(click on image to enlarge)

OLD at 40 YEARS of Age?
 
Remember what we said earlier in this article about the ADEA defining older workers as those who are 40+ years of age? Well, if this fact eludes you for one reason or the other, Millennials, namely people who were born between 1980 and 2000 are in the process of entering this class of "older" workers. People who were born in 1980 are already 40 years old! Having the largest representation in the current workforce, Millennials have every reason to be concerned about age discrimination in the work place. Seeing your chances of keeping a well-paying job diminish as you cross the "magic 40" line, could be a nightmare come to life unless corporate greed, with its insatiable appetite for cheapening the cost of labor is met with effective enforcement of laws that have been written to serve the public, as opposed to serving the corporate world.


It is unnerving to think that the U.S. economy can continue to function by the rules of the corporate world with automation and major layoffs producing whopper bonuses to enrich the few individuals sitting in corporate C-Suite roles while denying the actual workers from the ability to maintain sustainable living wages. What are we going to do with people in the 40s, 50s, and 60s who can no longer find a decent-paying job? It is time to recognize that "older" is a relative term and that term applies to every single person throughout their lives. There is no cure for aging unless jumping from a tall bridge is your favorite hobby. One day the other guy is "old" and on the next day you are "the other guy".

Achieving equal rights for women is getting a new life in the political arena, particularly when it involves equal pay for equal labor.  However, very few proponents of women's rights acknowledge the fact that "older" women bear much harsher treatment from employers due to age discrimination, than men of similar age. The MeToo movement made remarkable progress to expose and (hopefully) curtail sexual harassment and discrimination in the workplace. Maybe it is time to up the ante, use the momentum and declare the birth of the "Me-Three" (Me-3.00) movement to fight rampant age discrimination for women.

It is an "open secret" that Corporate America is in charge of the country, at least for the last 40 years. We have the "best politicians that money can buy", regardless of their political party affiliation. The current political system is totally fueled by money, which it seems to guzzle at an alarmingly high rate.
 
Although we currently (2020) have a President who seems to continuously make the wrong choices and then cover up in order to save face, both houses of the U.S. Congress seem to be stuffed with people of similar ego maniacal core. Congress and the U.S Senate are stuffed to the gills with recycled politicians who obey the wills of their donors, as opposed to the wishes of their constituents.
 
This situation is hard to explain, since most voters do not identify with either the RNC or the DNC propaganda. Gallup polls conducted frequently over the last few years consistently indicate that there are many more "independent" voters than voters that identify themselves with either "R" or "D". The latest poll conducted during the first week of June indicates that independent voters amount to 40% of the voting population as opposed to 25% Republicans and 31% Democrats.
 
To the best of my visibility, most people are more motivated to vote "against" a particular political candidate than "for" an alternative candidate. With this type of voters' psychosis, it is no wonder that the whole country is falling apart at the seams and what unifies us as voters are our differences...



While disaffection with both of the major parties has been rampant, attempts at creating a significant third party that could act as a tie-breaker in both houses of Congress have not been successful thus far. The political system is essentially rigged by the current players to prevent newcomers from taking political power from the entrenched establishment. As much as I would like to see a large "Independent Party" taking place in U.S. politics, it is difficult to imagine that such a phenomenon would come to life, absent a major long-term crisis. While the COVID-19 pandemic could potentially extend into a full blown existential crisis, most of the American public still believes that full recovery is a matter of a year or two. Throughout history this type of apathetic shortsightedness has always been the "Achilles Heel" of the plebiscite.

In reality, elected politicians must be "supervised" on a continuous basis. The power of money, concentrated in Washington D.C. lobbying firms, can be defeated if the voting constituents regularly and continuously check their representatives' actions by looking at their day to day, actions and voting records. Congressional representatives ears must be be kept open through continuous stream of messages sent to them by their constituents. In the absence of meaningful communication from their constituents, Congressional Reps attention becomes captive to be grabbed by D.C. lobbyists who's time is well paid to deliver their master's messages.

Calling politicians' bluffs does not need to wait for the next elections cycle. The Internet provides access to most Congressional records and it is too bad that most people do not care to read these records to enlighten themselves.
 
We all carry responsibility to manage our Reps, since otherwise, the money'ed interests in D.C. remain the only entities that interact with them. While big demonstrations in the streets have a significant "splash factor", such events tend to fizzle quite quickly. Generally, politicians have short attention span. In the absence of continuous follow-up on the cause, our politicians will not change their behavior, since most of them depend on money to retain their seat and the money supply is still concentrated in the hands of the "one-percenters" and the big corporate interests.

Take charge and call on your elected representative today! Tell them what you really care about.

Stay healthy and all the best!

--Dr. Flywheel

References:
 


Tuesday, June 5, 2018

Student Loan Debt Reached All Time High of
$1,521,019,350,000
in Q1 of 2018


Student Loan Debt Reached All Time High of $1,521,019,350,000 (more than 1.5 Trillion dollars)  in Q1 of 2018. Consequently, outstanding student debt currently exceeds auto loan debt ($1.1 trillion) and credit card debt ($977 billion). Considering that 42% of people who've gone to college took out debt, this number has high significance on the future of our economy and the future welfare of young families. According to the College Board, "In 2015-16, the 60% of bachelor’s degree recipients from public and private nonprofit institutions who borrowed graduated with an average of $28,400 in debt"

A recent FRB Board of Governors (FRB-BOG) report on the Economic Well-Being of U.S. Households in 2017, published in May 2018 informs us about the student debt situation:

Over half of college attendees under age 30 took on some debt to pay for their education. Most borrowers are current on their payments or have successfully paid off their loans, although those who failed to complete a degree and those who attended for-profit institutions are more likely to have fallen behind on their payments. • Among those making payments on their student loans, the typical monthly payment is between $200 and $300 per month. • Nearly one-fourth of borrowers who went to forprofit schools are behind on their loan payments, versus less than one-tenth of borrowers who went to public or private not-for-profit institutions.


Click on image to enlarge detail
As the table below shows, many families have taken debt to finance education of their children and/or grandchildren. This creates a "spillover effect" on debt ownership that continues to burden older adults, even after their offspring have become independent adults.

Click on image to enlarge detail


Here are some interesting anecdotes quoted from the same FRB-BOG report:
  • Nearly 25 percent of young adults under age 30, and 10 percent of all adults, receive some form of financial support from someone living outside their home.
  • Four in 10 adults, if faced with an unexpected expense of $400, would either not be able to cover it or would cover it by selling something or borrowing money. This is an improvement from half of adults in 2013 being ill-prepared for such an expense
  • Over one-fifth of adults are not able to pay all of their current month’s bills in full.
  • Over one-fourth of adults skipped necessary medical care in 2017 due to being unable to afford the cost
  • Nearly half of adults age 22 and older currently live within 10 miles of where they lived in high school, but those who have moved farther from home are more likely to be satisfied with the overall quality of their neighborhood.
  • Out-of-pocket spending for health care is a common unexpected expense that can be a substantial hardship for those without a financial cushion. As with the small financial setbacks discussed above, many adults are not financially prepared for health-related costs. During 2017, over one-fifth of adults had major, unexpected medical bills to pay, with a median expense of $1,200. Among those with medical expenses, 37 percent have unpaid debt from those bills. In addition to the financial strain of additional debt, over one-quarter of adults went without some form of medical care due to an inability to pay.
  • Those with less income are more likely than others to forgo medical care due to cost. Among those with family income less than $40,000, 39 percent went without some medical treatment in 2017. This share falls to 25 percent of those with incomes between $40,000 and $100,000 and 9 percent of those making over $100,000.
  • Over the past several decades, the rate at which Americans move—both short distances within states and longer distances across the country—has steadily fallen. This reduction in geographic mobility also fits within a pattern of less job switching, more generally, or reduced labor market fluidity.
I highly recommend reading the full FRB-BOG report for those of you who are concerned about the future of our economy and the welfare of our general population.


All the best,

--Dr.Flywheel

References:

Sunday, May 13, 2018

The Cheap Labor Loophole
OPT is the Name of the Game

Over the last three years I have been looking at the systemic abuses of F1 visa to OPT conversions. OPT, which euphemistically stands for "Optional Practical Training" is one of the major loopholes that large tech employers are using to circumvent the H1B visa caps while recruiting cheap and captive foreign workers residing within the United States. This loophole facilitates major layoffs of older (and more expensive) domestic employees and subsequently, replacement of these employees with cheap (entry level) foreign employees, using the OPT program for stay/work visa extensions.

Recently, the Pew Research Center published a comprehensive report on the subject of F1 to OPT visa conversion program. This program, driven mostly through the lobbying efforts of large High-tech employers continues to increase in size, completely unchecked.  The Mercury News outlet published a summary of this report in the latter part of this week. As you can see from the article referenced below and the PEW Research Center report, taking advantage of the OPT loophole, has become a standard operating procedure for many high-tech companies. The number of F1 (student visa) holders converted to OPT has grown 400% between 2008 and 2016, as shown in the chart below.

Click on the image to enlarge detail

Note that foreign workers who remain in the U.S. under the OPT program, are effectively, "indebted workers". They are being paid low wages and they are totally dependent on the graces of their employer, to maintain their residence and work permit. This makes them "ideal" target for exploitation. Employers would simply be "stupid" to not take advantage of this loophole to reduce the cost of labor. In the meantime, older domestic workers continue to be laid-off in droves.



Click on the image to enlarge detail

As can be seen from the chart above, Intel Corp. is one of the top companies taking extensive advantage of the F1 visa to OPT conversion loophole. Actually, as the chart above shows, Intel Corp. is No. 1 on the chart, leading all the employers listed above, including Microsoft Corp.

Without a doubt there is a price to pay when a company only focuses on cutting expenses and gets rid of its more experienced (however, more expensive) workers. In the case of Intel Corp. there is no reason to guess where this executive management policy fails. The writing is on the wall for Intel Corp. has been there since the 2015 mass layoff. Recent news about the 10 nm production line failures (see references below) serve as indicators of much more substantial problems to come. The company's ability to execute has diminished significantly, following the 2015 and 2016 massive employee layoffs.


The Mercury News outlet covered the OPT stay/work visa conversions loophole in a recent article, which is mostly based of the Pew Research Center report.

This is a quote from the Mercury News article referenced below:

OPT has caught the attention of critics pushing for reduced immigration. John Miano, a fellow at the Center for Immigration Studies, called the 2008 STEM extension a “scheme” by Microsoft to “circumvent the H-1B quotas.” The program started out giving work-experience opportunities to foreign students but has since been “transformed into a full-blown guestworker program whose stated purpose is to provide labor to American business,” Miano wrote in a September blog post for the center

Click on the image to enlarge detail

Clearly, the numbers shown on the map above speak for themselves. It is difficult to come to any other conclusion other than that the OPT program is pandering to the interests of high tech employers, by supplying access to cheap foreign labor, at the expense of domestic workers.

The Pro Publica article: CUTTING ‘OLD HEADS’ AT IBM, covers the multitude of ways in which older employees in the high-tech sector are loosing their jobs to foreign workers, through a variety of legal loopholes and shenanigans committed by Corporate America.   

When we examine the growing trends in the high tech industrial sector, of laying off older employees and replacing them with cheap and indebted guest workers, it seems that the OPT program lost its original purpose and de facto, under the intense lobbying of big business, was transformed into a U.S. Government sponsored, older worker mass displacement program!

--Dr. Flywheel

References:

Saturday, March 11, 2017

Intel Corp. Sponsored 10,168 H1B Visas In 2017

According to H1Bpay.com report, Intel Corp. sponsored 10,168 H1B visa applicants in 2017.

You can see the breakdown of the information, by State and location, at this link:

If you are interetsted in the subject, IEEE Spectrum magazine published the following article on the H1B visa program issue: Commentary: The H-1B Visa Problem as IEEE-USA Sees It.

--Dr. Flywheel

Your Personal Genetic Data Will Soon Be Available To Your Employer

If you believe that GINA (the 2008 genetic privacy and nondiscrimination law) protects your privacy and prevents your personal genetic information from being exposed to your employer's health maintenance plan, then this may no longer be the case.

H.R. 1313 was approved by a House committee on Wednesday, with all 22 Republicans supporting it and all 17 Democrats opposed.

Under provisions of H.R. 1313, your employer will be entitled to demand that you undergo genetic testing and the data collected will be made available to the employer.

Read the text of H.R. 1313 here:
https://www.congress.gov/115/bills/hr1313/BILLS-115hr1313ih.pdf

Considering that all data stored in databases could be easily breached, as evidenced from the many reports in the press, it is clear that H.R. 1313 represents a major regression in the struggle for maintaining privacy of personal information. As we have witnessed recently, even the NSA and CIA data has been compromised. In the near future, you might as well attach your DNA test report to your LinkedIn profile.

Fight to protect your rights before loosing them, altogether! Contact your U.S. Congress representative and tell them how you feel about H.R. 1313.

-- Dr. Flywheel

Thursday, March 2, 2017

Direct Participation In Democracy
Oregon District-1 Spring Town Hall Meeting Schedule

Congresswoman Suzanne Bonamici announced six town hall meetings across the First Congressional District, which includes Washington, Yamhill, Clatsop, and Columbia counties and part of Multnomah County.

Many of us live in the Oregon District-1 and would like to present our questions and comments to our representatives in a direct form. I encourage you to take the opportunity and participate in our democratic process directly, instead of letting the politicians learn about your wishes from paid consultants.

The Congresswoman’s schedule for town hall meetings is as follows:
McMinnville Town Hall Meeting
Date: Friday, March 3, 2017
Time: 6:00pm
Location: McMinnville High School, Auditorium – 615 NE 15th Street, McMinnville, OR 97128
Hillsboro Town Hall Meeting
Date: Monday, March 13, 2017
Time: 6:00pm
Location: Washington County Fair Complex, Main Exhibit Hall North – 873 NE 34th Avenue, Hillsboro, OR 97124
Warrenton Town Hall Meeting
Date: Saturday, April 15, 2017
Time: 11:00am
Location: Warrenton High School, Gym – 1700 S Main Avenue, Warrenton, OR 97146
Scappoose Town Hall Meeting
Date: Saturday, April 15, 2017
Time: 3:00pm
Location: Scappoose High School, Gym – 33700 SE High School Way, Scappoose, OR 97056
Sherwood Town Hall Meeting
Date: Monday, April 17, 2017
Time: 6:00pm
Location: Sherwood High School, Gym – 16956 SW Meinecke Road, Sherwood, OR 97140
Portland Town Hall Meeting
Date: Sunday, May 7, 2017
Time: 11:00am
Location: Lincoln High School, Gym – 1600 SW Salmon Street, Portland, OR 97205
Please note: Parking may fill quickly. Please consider carpooling or public transportation.
--Dr. Flywheel

Friday, February 17, 2017

Are We Heading Towards the Next Financial Crisis?

A recent report by the New York branch of the Federal Reserve Board indicates that the total household debt balance is approaching the record peak of $12.68 Trillion, reached in Q3 of 2008. The Q4 2016 number is reported at $12.57 Trillion.

(Click on image to enlarge)
The most alarming fact coming out of this report is that student loan 90+ day delinquency is rising sharply and consistently over the last two decades. The current student loan outstanding balance stands at approximately $1.3 Trillion. 

The following table (source: FRBNY), clearly shows that student loan default rate leads household debt-component delinquency by far. Note that FRBNY has warned in its previous reports that though the current delinquency rate is alarmingly high, the actual delinquency rate, as an indicator, is quite understated, since many student loans payback terms are deferred, while students attend school. Once the deferral period is reached, it is highly likely that we will notice a much more significant rise in the delinquency rate.

90+ day delinquency rates (known as "seriously delinquent")
CATEGORY1Q3 2016Q4 2016
MORTGAGE DEBT1.6%1.6%
HOME EQUITY LINE OF CREDIT2.0%2.1%
STUDENT LOAN DEBT 210.9%11.2%
AUTO LOAN DEBT3.6%3.8%
CREDIT CARD DEBT7.1%7.1%
ALL3.3%3.3%
1Delinquency rates are computed as the proportion of the total outstanding debt balance that is at least 90 days past due.

2As explained in a previous report, delinquency rates for student loans are likely to understate effective delinquency rates because about half of these loans are currently in deferment, in grace periods or in forbearance and therefore temporarily not in the repayment cycle. This implies that among loans in the repayment cycle delinquency rates are roughly twice as high.
(Click on image to enlarge)
While students' inability to pay back their loans in a timely manner, affects their credit scores as well as spending ability, in many cases this delinquency affects the economic reality of their parents, when parents co-signed as guarantors on their children's loans. Unlike other types of debt, this type of situation has the "passing-the-buck" effect that binds multiple generations together into Indentured Servitude. The economic impact on households that have a high debt to income ratio could have very dire consequences, as both parents and their children are forced into default. Since our government precluded student loan debt  from personal bankruptcy protection, there is currently no mechanism that could prevent a debt crisis.
(Click on image to enlarge)
Perhaps it is time to call out our government policies for a major review, regarding investment in education in general and the cost of higher education in particular. It is unclear why we have the most expensive higher education in the world, while other developed countries make higher education completely free for their citizens and permanent residents. With many countries in Europe (Germany, France, Scandinavian countries, etc.) offering free university education, at top universities (see references below), to foreign citizens (including U.S. citizens) are we going to begin shipping our young population abroad to seek debt-free destiny?

With hundreds of thousands of H1B visas granted to foreign workers every year and with even greater number of F1 visas granted to students who enter the U.S. workforce through "Optional Practical Training" (OPT) arrangements, U.S. Employers receive the short-term benefit of cheaper labor, all at at the entry level. However, by undercutting citizen children of the middle class in the U.S. from a chance to receive higher education, due to affordability issues, any short-term gain in worker supply will be replaced by a massive downfall and screaming shortages of well educated workforce in the long term.

Is it not the time to demand a major revision of the "for profit" approach in higher education? This system went overboard over the last 30 years, making college-level education un-affordable for so many people and enslaved those who received financial support for their education to a lifetime of debt. With the financial sector taking over every aspect of our lives and dominating the political system, are we going to sit at home and see this, once great country, going to the dump, while enriching the top 0.1 percent of the population?

Your comments are welcome.

--Dr.Flywheel

References:
Since the original date that this article was written the picture became even worse. The latest FRBNY report indicates a significant increase of ongoing consumer debt, as quoted below:
(Click on image to enlarge)
  • Aggregate household debt balances rose to a new peak in the second quarter of 2017. As of June 30, 2017, total household indebtedness was $12.84 trillion, a $114 billion (0.9%) increase from the first quarter of 2017 (the original article reported 12.57 Trillion, or a change of 270 billion since Q4  2016). This increase put overall household debt $164 billion above its peak in the third quarter of 2008, and 15.1 percent above its trough in the second quarter of 2013.
  • Mortgage balances, the largest component of household debt, which stood at $8.69 trillion as of June 30, saw a $64 billion uptick from the first quarter of 2017.
  • Balances on home equity lines of credit (HELOC) were roughly flat, and now stand at $452 billion.
  • Non-housing debt rose in the second quarter, with increases of $23 billion in auto loans and $20 billion in credit cards; student loan balances were roughly flat.
Reference:

Wednesday, February 15, 2017

2016 H1B Visa Petitions For Each State - Ranked by Number of Petitions

According to the Department of Home Security (DHS), H1B visas are granted to the following categories of applicants:
  1. Specialty Occupations
  2. DOD Researcher and Development Project Worker
  3. Fashion Model
I must admit that I was not aware of the current "carnage" and screaming shortages in the fashion model market. Maybe your guess would be better than mine regarding the identity and the interests of the lobby groups who "helped" our government define the above categories; however, the current non-resident worker employment policy of the U.S. are practiced, based upon the H1B categories mentioned above.
(see: https://www.uscis.gov/working-united-states/temporary-workers/h-1b-specialty-occupations-dod-cooperative-research-and-development-project-workers-and-fashion-models).

The table below lists the number of H1B visa petitions submitted by US employers in fiscal year 2016, organized by State rank. The Number of LCA column reflects the number of Labor Condition Application(LCA) filed for H1B Visas. . This number includes new, renewed and transferred LCAs. 

Note that in some cases the visa sponsors (employers) specify a salary range, instead of a single numerical salary value. In such case the Average Salary column reflects the average proffered salary on the LCA application or the attached Form 9035. 

Click on the embedded links to get further breakdown of the information (Courtesy of:  http://www.myvisajobs.com/Reports/2017-H1B-Visa-Category.aspx?T=WS)

RankWork StateNumber of LCA *Average Salary
1California119,744$100,542
2Texas68,460$79,940
3New York58,660$92,567
4New Jersey48,365$78,908
5Illinois35,177$81,842
6Massachusetts24,887$87,638
7Georgia24,859$79,504
8Pennsylvania23,376$84,692
9Washington23,146$102,779
10Michigan20,966$77,545
11Florida20,848$78,039
12Virginia18,902$81,852
13North Carolina18,845$82,486
14Ohio16,342$80,292
15Maryland10,739$81,851
16Connecticut10,034$86,838
17Minnesota9,938$83,414
18Arizona9,732$83,345
19Missouri7,971$78,011
20Wisconsin7,046$82,666
21Colorado6,501$85,639
22Indiana6,399$81,569
23Tennessee5,652$79,330
24Oregon4,718$86,092
25District of Columbia4,134$86,293
26Delaware3,521$84,892
27Arkansas3,406$78,780
28South Carolina2,952$78,275
29Iowa2,940$83,365
30Utah2,887$79,034
31Kansas2,768$84,216
32Kentucky2,624$83,644
33Rhode Island2,457$86,683
34Louisiana2,191$88,751
35Alabama2,053$80,989
36Oklahoma2,015$74,551
37Nebraska2,014$83,223
38New Hampshire1,906$84,485
39Nevada1,396$86,596
40New Mexico1,039$95,587
41Idaho887$79,349
42Mississippi839$97,002
43Maine687$104,311
44West Virginia617$114,471
45Hawaii557$77,837
46North Dakota544$103,572
47Vermont366$81,878
48South Dakota347$84,426
49Alaska201$84,652
50Montana191$88,029
51Wyoming137$102,661

Your comments are welcome.

--Dr. Flywheel

Wednesday, February 1, 2017

Court Will Decide If Employer Can Avoid Hiring Older Workers To Maintain Image

The EEOC filed its law suit against the Texas Road House for practicing age discrimination against older workers. The law suit is referenced as: Civil Action No. 1:11-cv-11732-DJC, filed in U.S. District Court for the District of Massachusetts.

Details of the case are summarized in this press release: Texas Roadhouse Refused to Hire Older Workers Nationwide, EEOC Alleges in Lawsuit

The law suit claims: The EEOC alleged that Texas Roadhouse has hired significantly few “front of the house” employees 40 or older in age. In addition, Texas Roadhouse allegedly instructed its managers to hire younger job applicants. For example, Texas Roadhouse emphasized youth when training managers about hiring employees for its restaurants. All of the images of employees in its training and employment manuals are of young people.

Although the law suit is currently taking active action in court, you may be interested in the EEOC request:

Individuals who believe they may have been denied a position at Texas Roadhouse because of their age or who have any information that would be helpful to the EEOC’s suit against Texas Roadhouse should contact the EEOC toll free at (855) 556-1129 or by e-mail at texasroadhouse.lawsuit@eeoc.gov.

Peter Gosselin of Pro Publica, the investigative journalism and public interest news organization published a recent article, covering the court proceeding. Click on this link to access Peter's article:

Federal Court May Decide If Employers Can Reject Older Job Seekers to Protect ‘Image’

Note: Peter Gosselin continues to investigate age discrimination in employment cases and is particularly interested in talking to people who have experienced such illegal treatment by their employer.

Peter's contact information is:   Peter.Gosselin@propublica.org
   @PeterGosselin


These days that our government is showing a great tendency to pursue the interests of Big Business, while the 70-80 million population of the Baby Boomer generation is heading into uncertain retirement, it is crucial to insure that corrective actions will take place. Age discrimination has been the "big elephant in room" for a long time. Big Business took advantage of weaknesses in the way Congress phrased civil rights protection against age discrimination and deterred affected employees from taking legal action against their employers. The EEOC final rule of 2012 removed some of the ambiguities of the ADEA law; yet, very few legal actions were followed by the EEOC.  If the new administration proves to act against the interest of the voting population by blocking protection of older workers' civil rights, then perhaps it would be time to mobilize older workers to march into the streets. Older workers tend to be more active in casting votes than the general population and I fully expect that politicians who ignore their plight will be punished for their lack of corrective action. On the other hand, perhaps our new President, will see the light of day and understand that pursuing protection of civil right for millions of Americans is what can make America Great Again. Perhaps members of the U.S. Congress will understand that the elections of 2018 are around the corner.

--Dr. Flywheel