Introduction
Foundation of Silicon Valley
Silicon Valley is located in Northern California, the southern part of the San Francisco Bay Area. The term originated from the fact that the area had a large number of silicon chip manufactures and innovators. As the years rolled by, the area became a base foe technological experts and entrepreneurs. The largest population composed of people of Chinese origin and Indians. They have had a great impact on the economy of the area due to the technological inventions that they are making in the area. As this is being observed, there has been a need for more of such technology to be pumped in to impact more on the trading activities of the region.
The United States has put tough measures on the acquisition of visas to the immigrants who are basically the main source of technological expertise in the region (Pitti 49). The reason that has been given for such is to minimize on the rate of immigrants flocking into the country. There is a concern that they may overpower the locals and the natives with the ability to make and create wealth which will pose a threat to their growth. In this paper we focus on the impacts of immigrants on the economy of northern California and the reaction of the U.S. government to it.
Discussion
New products (now, in the past and in future)
Silicon Valley is known for being extensively inhabited by foreigners from India and china. These are a group of individuals that are so much informed in the field of information and technology. Their settlement into the Silicon Valley is having positive impacts on the economy of California considering the job opportunities that they are providing for the people. These skilled groups of people are experienced in the area of entrepreneurship which is giving them a competitive advantage over the natives. They are hence creating job opportunities for the people of California which is also impacting positively on their standards of living.
The sophisticated technology that is being used by theses people is enhancing on the quality of products that they are involved in such products to name but a few includes; household goods, cosmetics house hold consumables and commercial electronic appliances.
The Chinese have created a total number of 41,684 job opportunities and the Indians have created a total number of 16,599 all of these jobs are in the industrial sector and some of the jobs are casual while others are skilled in nature (Dun & Bradstreet 1998).
Most of the firms that have been created are technological industries that deal in the manufacture of spare parts, telecommunication devises and garments. There are also a good number of Indian companies that deal in the manufacture of household products such as bathroom and toilet facilities, swimming pool facilities and many other decorations for special functions or home decorations. The Chinese companies mostly deal in making electronic products such as fridges, microwaves, and cookers to mention but a few. All this minimize on the rate at which the country would import and hence making the residents to obtain them at a slightly cheaper rate.
Recent Efforts to Stop Them
Despite the positive impacts that the foreign immigrants are having on the economy of the state, there have risen questions on the popularity that they have gained in the region, there is a question on how such immigrants can take over the city of California (Glenna, 57). They have proved to wiser than the natives and are of course giving employment consideration to their fellow immigrants. This people are hence becoming wealthier than the Americans which is raising a fear within them. They are basically the people that are holding the economy of California and the rate at which they are growing may make them to penetrate to other parts of the U.S economy.
The number of foreigners that are penetrating the country is raising a lot of concern. The fact is that after the immigrants leave, they do not go with the job opportunities that they have created neither do they take the skills away from the people this is because the skills trickles and becomes part and parcel of the community since its plant hardware and blue print for running the respective industry remains intact while the immigrants just leave with the knowledge (Naguib, & Park 86).
The visa policy that has been implemented by America is denying them the opportunity to grow even the more. There are various restrictions that have been placed on the immigrants which is limiting on the rate at which they can impart on the economy of the country. Skilled workers that could bring in additional technology which is necessary for growth are being denied the opportunities to venture into businesses. Policy makers have failed to recognize the fact that the economy of the state is dependent on such immigrants and that they can not do without them (Friedman, 89). Despite the foreign technology that is being brought to the land, the natives are able to adapt it and hence using it for their own personal development.
Silicon Valley is highly inhabited by Indians who came into North America from other Indian communities such as those who live in the United Kingdom, Trinidad and Tobago, Canada and Malaysia. This group of people is referred to as the Indian American North America and it represents the most educated population in America, they are mostly, Hindu, Muslim, Jain and Sikh.
A report by the American community-survey census bureau of the united states, the population of these Asian Indian grew at a rate of 53%, in the year 2000 the population was 1,679 000 and grew to 2, 570 000 in the year 2007 this was the highest growth rate for any Asian American community in America (U.S. Census Bureau).
The immigrants’ have recently released the effects of brain drain and are now return home to take up the existing jobs and business opportunities. The immigrants have established networks with their home countries and taken advantage of the cultural knowledge and the language skills. The table below shows the number of business opportunities, sales and jobs created in silicon valley that are led by CEOs of India and china origin.
Number of Firms, Sales and Jobs Created by Indian and Asian CEOs in Silicon Valley In 1990
According to an analysis by Dun & Bradstreet (24), “the Chinese have established a number of 2001 firms which has amounted to 13, 237 million dollars in total sales and that these firms created a total number of 41, 684 job opportunities. The Indians on the other hand have established a total number of 774 firms that amounted to 3589 million dollars, total sales.” Dun & Bradstreet (32) also notes that, “the firms established by Indians created a total number of 16599 job opportunities.” From the totals above, there is also a certain percentage that the government benefits from. 24% is credited from the number of firms created, 17% to the total sales and 14% to the job opportunities that have been created.
The statistics of the year two thousand and six showed that there were 1,266,264 people who migrated to the United States, form this total fifty eight thousand were from India (Friedman P14). The results of the study conducted by a joint Duke- University found out that there are a higher number of technology and engineering companies initiated by Indian-immigrants between the period 1995 and 2005 than those that were founded by immigrants from, china, Japan, U.K and Taiwan together.
The study also found out that a third of the engineers found in the Silicon Valley were Indian Americans, while close to seven per cent of the high technology firms in the Silicon Valley are managed by Indian chief executive officers.
The excellence in engineering and technology by the Indian Asians was attributed to the good performance in education compared to other ethnic groups that live in the United States. It was found out that the number of bachelor’s degree holders or any higher degree was close to 67 per cent among the Indians and other Asians. According to Friedman (13) “close to 40 per cent of the Indians living in the US are holders of professional, masters and doctorate degrees and this five times above the overall total population in the United States.” This hence signifies the academic influence they have on the Americans. Americans are also realizing the importance for them to seek higher education that will improve their practical skills.
The U.S government has failed to maximally utilize the skills that are being imported to the nation as they are not giving the immigrants adequate time to impart on the economy. The immigrants are sent away from the country before effectively imparting on the natives. Their quest to come back to probably accomplish what they began s mostly denied with the fear that they may drain the brain of the natives. Most of the people that are located in the area mainly depend on the establishment that have been made by such immigrants and hence lacking the ability to make their own inventions (Maasik & Solomon, 23).
The aim of the united states of minimizing on the number of such immigrants is that the Americans may think for themselves. They realize that what the foreigners have done for them is enough and it is a high time they also put their brains at work. It is hoped that they will learn from what they have seen and hence being able to take up the development of their own region.
Recognizing the recession reality
The US economy has been going through rough moments that led to the recession. It is hence a high time that the country needs to admit that they need external intervention to boost their economy. Foreign immigrants should be considered to be valuable assets that will facilitate the economic change that the country desperately need rather than putting limits on them. The country needs to realize that the economy of the country is more important than their ego.
The US government is imposing such barns simply because it does not want it to appear as if they are being supported by immigrants. As long as the country keeps holding such attitudes towards immigrants that are pumping into the economy, they will not be able to experience the growth that they desire. The country needs to realize that and accept anything that is likely to boost their economy like retaining productive immigrants into the country.
The Policy of H1-B Visa Is Totally Unfair Policy for Migrants- It Is Totally Not Fair If They Leave
The high immigration rate to the Silicon Valley has been characterized with an increase in the growth of economy. According to the new law, the local law enforcement agencies and the state should know about someone’s immigration-status if an immigration officer develops any doubts on the legal-status of an immigrant. According to the law individuals who do not provide their legal immigration status should be subjected to arrest however, this law has been opposed, for instance the board of supervisors in san Francisco have protested and threatened to end all contracts and doing any business with the state.
Silicon Valley lawyers association has tried to deliberate with the state on how to make the new fair. One of the proposals was for the Silicon Valley employers to prepare an H-1B form to act as work permits for their employees. According to Naguib, Pellow, and Park, Lisa Sun-Hee (34) “in order to qualify for an H-1B the employee should be coming to work for a U.S employer and the employee should come to work for a specified job position.” In order to qualify for the specific job qualification the employee should have at least a bachelor’s degree in the specified job requirement.
For any employer to support for an H-1B for his/her employee the employer have to show a labor-condition-application issued by the labor-department. The importance of this labor-condition-application is to ensure that employing H-1B would not have any effects on the united state workers in the same jobs. Once the labor application form is approved the employer should file the H-1B petition with the united state security agency.
According to Naguib, Pellow, and Park, Lisa Sun-Hee (20) “the H-1B can first be granted for a period of three years and can be extended for another period of three years.” In order to develop an innovation system for the Silicon Valley the united state has adopted a start- up visa act. The start up visa act is meant to create a two-year-visa for entrepreneurs who are immigrants. The enterprises should be able to generate up to $250,000 and have $100,000 raised by a venture investor in the US who is qualified. Lacuyer (17) indicates that, “in two years time if the entrepreneur will be in a position to create five jobs and above, invest an additional one million dollars or produce revenues that are above one million US dollars the entrepreneur is guaranteed to become a legal resident.”
These hence reveals that the step that is being taken by the US to minimize on the time in which immigrants are allowed to stay in the country, without imparting on the local residents will greatly affect the economy. Unless the residents becomes fast learners and get the investment concept from the immigrants, it does no food for they country to impose such limitations on the foreign immigrants.
Conclusion
In conclusion, it can be noted that the downfall of the Silicon Valley economy was as a result of the United State political interference on the immigrant’s life who were the founders of the growing economy. The debate on illegal migration is highly sensitive to the immigrants who are responsible in creating multiple jobs. The harsh visa requirement on the legal status of the immigrants will result into the immigrants going back to their native land and as a result America will loss some of its skilled man power despite the economic contribution of these immigrants.
Before the country limits on the influx of immigrants in California that have become the main investors, the natives should be empowered so that they can have the ability to manage what has been entrusted to them. In the long run, it will be about the America’s economic situation rather than the influx of foreign investors into the country. As the immigrants leave the country, their lives move on and use similar skills to develop their countries.
For instance, the Chinese immigrants that left us are using similar skills to develop their country, this is revealed by the big investments that the Chinese are entering into. Chinese is recognized to be one of the countries apart from Japan that has invested a lot in technology and machinery. The Indians who leave the United States on the other hand are doing great, with Bangalore city being their base. The city is growing at a very high rate as many people flock into it to make their investments.
Works Cited
Friedman, Thomas. The World is flat. Chicago: university of Chicago press, 2005.
Glenna, Matthews. Silicon Valley, Women, and the California Dream: Gender, Class, and opportunity in the Twentieth Century. Canada: Stanford university press, 2003.
Lacuyer, Christopher. Making Silicon Valley: Innovation and the growth of high tech. New York: New York University Press, 2005.
Maasik, Sonia and Solomon, Jack. California Dreams and realities: Readings for critical thinkers and writers. Canada: Bedford Books, 2004.
Naguib, Pellow and Park, Lisa. The Silicon Valley of dreams: environmental injustice, immigrant workers, and the high-tech global economy. New York: New York University Press, 2002.
Pitti, Stephen. The Devil in Silicon Valley: Northern California, Race, and Mexican American. Canada: Princeton university press, 2004.
U.S. Census Bureau. United states department of commerce news, 2001. Web.