Theranos was an immigration and H-1B story

Bad Blood, the authoritative book on the rise and fall of Theranos, describes American- and British-born engineers and scientists being fired for saying “the goal is too ambitious” or quitting when realizing this. Who replaced them? According to the book, almost all immigrants from India, either folks who’d recently completed a degree in the U.S. or coming over on H-1B visas, all managed by Ramesh Balwani, Elizabeth Holmes’s boyfriend.

During the “grand fraud” stage of Theranos, therefore, it was a primarily immigrant show except for the young impresaria.

[I’m going to guess that neither Mr. Balwani nor any of these engineers and scientists make it into the children’s book First Generation: 36 Trailblazing Immigrants and Refugees Who Make America Great…]

The money to fuel the craziness of Theranos seems to have been all domestic. Walgreen’s kicked in $100 million(!) as an “innovation fee” and then loaned the company another $40 million, according to the book. The credulous yet imperial CEO Steve Burd (Wikipedia shows him hanging out with Barack Obama) drained huge amounts of Safeway shareholder cash to help Theranos. The idea in both cases was that Theranos devices were supposed to be placed in these retailers’ stores.

If the end result is a tech staff that is mostly Indian, I wonder if the Silicon Valley location makes sense. Why not have all of the engineers and scientists work from Bangalore or Delhi? Instead of 8 people sharing a two-bedroom apartment in Menlo Park, each of those 8 workers can enjoy his or her own comfortable house (rent for a 3BR apartment in the center of Bangalore is about $570/month (source), 1/10th the price of Menlo Park (source)). What’s the advantage of bringing H-1B slaves over to toil on a Silicon Valley plantation compared to running the tech farm in India?

(Another interesting aspect of the book is learning just how much room there is for human error in traditional medical lab tests, e.g., in the handling of reagents. Elizabeth Holmes was not wrong in thinking that a fully automated process could potentially be more reliable.)

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Can any migrant from an Islamic country obtain citizenship in a Western country by saying “I renounce Islam”?

“Saudi teen lands in Canada after fleeing family” (CNN):

A Saudi teen who fled to Thailand to escape her allegedly abusive family has arrived in Canada after being offered asylum there. … Qunun had flown to Thailand from Kuwait to escape her family, saying she feared they would kill her because she renounced Islam.

Could this work for anyone willing to say to a Western official “I don’t think that there is a God”?

The U.S., Canada, Australia, or the European nations are required to offer asylum to anyone with a reasonable fear of persecution, right?

A lot of countries do not allow residents to commit blasphemy or apostasy. See Wikipedia on Freedom of Religion in Saudi Arabia, for example, or this page on how anyone who questions a major religion can be imprisoned for five years in Indonesia. Why couldn’t any of the 264 million folks who live in Indonesia move to Canada or the U.S. tomorrow, saying “I question the truth of all six recognized religions and I could be imprisoned for this if I were to be returned to Indonesia.”? How could a government official in Canada, for example, ever prove that such a declaration of disbelief was false?

Why would anyone from a country in which denying the truth of Islam is punishable bother with any other strategy for obtaining legal residency in a Western welfare state?

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The U.S. delivers a Third World ground transportation experience?

Back in the 1980s, you knew that you were in a Third World country when

  • traffic congestion made daytime trips take 2-3 times longer than they would be on clear roads
  • your driver had only a tenuous command of local geography
  • your driver was not proficient in English

On a recent visit to Miami, my born-in-Colombia Uber driver was unable to find the Hyatt on Miami Beach, unable to follow the directions from the Uber app, and unable to speak more than a few words of English. Here’s Interstate 95 circa 6 pm on a Monday:

Upon arrival in Boston, my born-in-the-Dominican-Republic driver struggled with the English language (after six years in the U.S.; he’d been a bus driver in the DR so presumably hadn’t needed English there) and with the mid-December snow (thanks, Honda, for engineering the Accord so that I’m still alive!).

None of my previous 10 Uber drivers in Miami or Washington, D.C. had been native-born or were English-proficient.

Is it fair to say that, at least when it comes to traveling around our cities, the U.S. is delivering the Third World 1980s life experience?

[Tangentially related: We lined up for coffee and “Aussie pies” at a shop in St. Augustine, Florida a couple of days ago. The huge Christmas/New Year’s tourist crush was over, but the city was still packed with humanity (of course we need more via immigration!). It was 10:30 am and they’d mostly sold out of the pies. I noted to a former Soviet comrade: “This is just like what Westerners said life in the Soviet Union was like circa 1970. You wait in a long line and then when you get to the front find out that everything has been sold.”]

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States radically diverging in terms of immigrant percentage

This chart shows that, as of 5-10 years ago, the experience of living in California would involve finding an immigrant family in every fourth house (3 native-born families and then 1 immigrant).

The experience of living in Ohio, on the other hand, would involve finding 1 immigrant family per every 25 houses. In West Virginia it would be 1 per every 70 families.

(These per-house numbers need to be tweaked since fertility and family size are different for immigrant and native-born Americans, but I was too lazy to do the arithmetic. There is some state-by-state data available on this.)

(All of these percentages are likely higher in 2018 due to historically high levels of immigration continuing; see Pew Research for the trend since 1990. My home state of Massachusetts went from 9.5 percent immigrant to 15.1 percent over a 22-year period. My birth state of Maryland went from 6.6 percent to 14.1.)

I wonder if this partly explains why Americans feel that they don’t have as much in common as they used to. When it comes to encountering immigrants as co-workers, neighbors, friends, competitors for jobs and real estate, etc., they really don’t have that much in common, especially if we were to zoom down to the county level. Americans are essentially living in different countries, one of which is substantially made up of immigrants and one of which is substantially made up of native-born people.

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Hillary Clinton says 333,000 immigrants per year is bad for Europe…

…. but 1+ million migrants per year is good for the U.S.?

“Hillary Clinton: Europe must curb immigration to stop rightwing populists” (Guardian):

“I think Europe needs to get a handle on migration because that is what lit the flame,” Clinton said, speaking as part of a series of interviews with senior centrist political figures about the rise of populists, particularly on the right, in Europe and the Americas.

“I admire the very generous and compassionate approaches that were taken particularly by leaders like Angela Merkel, but I think it is fair to say Europe has done its part, and must send a very clear message – ‘we are not going to be able to continue provide refuge and support’ – because if we don’t deal with the migration issue it will continue to roil the body politic.”

Clinton’s remarks are likely to prove controversial across Europe, which has struggled to form a unified position ever since more than 1 million migrants and refugees arrived in the EU in 2015.

The EU population is 508 million. So 1 million migrants since 2015 is a much lower percentage of the total population than the roughly 1 million immigrants per year into the U.S. (population 330 million).

The apparent contradiction between Hillary’s opposition to Donald Trump in the U.S. and her opposition to migrants in Europe was addressed a day later. “Hillary Clinton calls for reform, ‘not open borders,’ in explaining European migration remarks” (NBC):

“Maybe Hillary has understood the lesson,” Giorgia Meloni, the leader of the far-right Brothers of Italy party, told The New York Times. “If you don’t control migration it will affect mostly poor people, people living on the outskirts, working classes.”

The “EU needs a more comprehensive policy that builds societies that are both secure and welcoming,” she continued.

“On both sides of the Atlantic, we need reform. Not open borders, but immigration laws enforced with fairness and respect for human rights. We can’t let fear or bias force us to give up the values that have made our democracies both great and good,” she wrote.

“Can’t just keep doing the same things.”

“There are solutions to migration that do not require clamping down on the press, on your political opponents and trying to suborn the judiciary, or seeking financial and political help from Russia to support your political parties and movements.”

But what are the solutions? Hillary is keeping them secret until she is elected President?

I thought about this during a recent trip to Montgomery County, Maryland (DC suburb). All of my Uber drivers were immigrants. None spoke English fluently. One driver had immigrated from El Salvador 13 years ago and didn’t speak English well enough to qualify for legal immigration to Canada, for example. It looks as though a family of four is entitled to welfare (e.g., housing subsidies) if earning less than $89,850 per year (table). If you consider subsidized health insurance to be welfare, the income number for a family of 4 in Maryland is $100,400 per year (March 1, 2018). How are people who don’t speak English going to earn enough to get off welfare? And, if they can’t get off welfare, why will existing taxpayers in Maryland welcome more immigrants at the same skill level?

What is the grand theory supporting the current policy? That the children of someone who couldn’t learn English in 13 years are going to be above-median learners and earners?

Or maybe this is just adverse selection? Immigrants who are really bad at learning languages differentially choose to drive Ubers? The rest of the El Salvadorans who came 13 years ago are executives now?

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Why don’t we offer free tickets to San Francisco for asylum-seekers?

“Federal Judge Blocks Trump’s Proclamation Targeting Some Asylum Seekers” (nytimes):

A federal judge on Monday ordered the Trump administration to resume accepting asylum claims from migrants no matter where or how they entered the United States, dealing at least a temporary setback to the president’s attempt to clamp down on a huge wave of Central Americans crossing the border.

Judge Jon S. Tigar [Obama appointee] of the United States District Court in San Francisco issued a temporary restraining order that blocks the government from carrying out a new rule that denies protections to people who enter the country illegally. The order, which suspends the rule until the case is decided by the court, applies nationally.

After the judge’s ruling on Monday, Lee Gelernt, the A.C.L.U. attorney who argued the case, said, “The court made clear that the administration does not have the power to override Congress and that, absent judicial intervention, real harm will occur.”

My comment:

I’m pleased to hear that the virtuous citizens of San Francisco, including at least this one judge, wish to welcome asylum-seekers and also pay them a $15/hour minimum wage. How about we offer plane tickets to SFO, SJC, and OAK for any asylum-seeker anywhere in the U.S.? My understanding is that San Francisco has an ample supply of public housing and other services for those at the lower end of the wage scale (and/or for those whose skills are not sufficient to command a $15/hour wage). Certainly folks in the Bay Area have big hearts and it wouldn’t be fair either to them or to the asylum-seekers for other states, regions, and cities not to assist the passage of all caravans straight through to Union Square.

I’m happy to pay for some Southwest, JetBlue, and Spirit tickets. All that I ask for in return is a Smartphone [Obamaphone?] photo of the welcoming committee in San Francisco.

This was somewhat tongue-in-cheek, but why doesn’t it happen? Californians say that they want immigrants, regardless of documentation status or skill level. Americans in other states don’t want more immigrants. Transportation is inexpensive. Why not make it easy for any asylum-seeker or undocumented immigrant to go to San Francisco?

[Separately, why is the ACLU involved? Its web site says that it is “the nation’s premier defender of the rights enshrined in the U.S. Constitution,” but do would-be immigrants have rights under the U.S. Constitution? If so, shouldn’t people in Afghanistan and Iraq have had the right to due process before getting bombed and shot? The ACLU is also recently against “due process” for college students who are accused of sex-related misdeeds. They say that this is because of their concern for “women and girls of color”, but Atlantic says that it is disproportionately “men of color” who are accused and kicked out. From the Atlantic article: “In 2015, in The New Yorker, Jeannie Suk Gersen, a Harvard Law School professor, wrote that in general, the administrators and faculty members she’d spoken with who ‘routinely work on sexual-misconduct cases’ said that ‘most of the complaints they see are against minorities.’ (Professor Suk was a source for us on domestic violence and the potential for a one-hearing divorce, custody, and child support victory.) If the ACLU is enthusiastic about African-American men being stripped of the presumption of innocence in university-run sex tribunals, why wouldn’t they also advocate for the removal of what had been considered due process in ordinary criminal courts?]

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  • “Unlimited Haitians for communities that prepare to welcome them?”: People in San Francisco, Santa Monica, Manhattan, Boston, etc. are criticizing Trump for voicing his opinion (wrong, by definition!) regarding living conditions in Haiti. They also criticize him for being unwelcoming toward low-skill immigrants from unsuccessful societies in general. What if Trump were to offer immigration proponents an unlimited supply of people, without any preference for those capable of working, on condition that immigration advocates use state and local tax dollars to pay for their housing, health care, food, and walking-around money? So if people in San Francisco want to build a 1000-unit apartment complex for Haitian immigrants, and folks will be permanently entitled to live there by paying a defined fraction of their income in rent ($0 in rent for those with $0 in income), and San Francisco commits to build additional apartment complexes in which any children or grandchildren of these immigrants can live, why should the Federal government stand in the way of their dreams? (Of course, the city and state would also have to pay 100 percent of the costs of Medicaid, food stamps, Obamaphones, and any other welfare services consumed by these immigrants or their descendants.) If there were no numerical limits on immigration, but host communities had to pay for the guests whom they were welcoming, Trump wouldn’t have to be the bad guy anymore. … 
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Immigrant Nobel laureates

A Facebook friend with a Ph.D. in Physics posted the following as her status:

All six US science Nobel prize winners this year are immigrants.

Last year, all six US noble [sic] prize winners were also immigrants.

I’m sharing this in case you still think “immigrants are ruining America.”

As part of my campaign to be defriended by everyone, I responded with

Did they all arrive in the same caravan from Honduras or was it six separate caravans?

I then pointed out that nobelprize.org shows 2018 U.S. winners having been born in exotic locales such as Pittsburgh, Norwalk, and New York City. But I helpfully supplied a video from an immigrant Nobel laureate in Physics (he won in the 1970s). Her response:

You can’t possibly feel threatened by 5K women and youth.

Me:

let’s maybe not encourage the caravan women to apply for the Nobel in Literature (see “The ugly scandal that cancelled the Nobel prize”)

One find: Wikipedia says that George Pearson Smith (immigrated to the U.S. from Norwalk, Connecticut) is a “a strong supporter of the Boycott [Israel], Divestment and Sanctions movement”. Now that he is stuffed with Nobel cash, let’s see if he will give up his house to the Native American tribe from which the land was stolen!

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H-1B program means that MIT graduates aren’t special anymore?

I got the cold shoulder from a couple of aviation companies when I invited them to come speak and demo in our three-day FAA Ground School class at M.I.T. Maybe it is Boston’s typically miserable January weather that is putting them off, but I wonder if the main reason for the lack of interest is the ease of recruiting skilled foreigners via the H-1B visa program (created in 1990).

In the 1980s, companies that needed nerds would flock in-person to MIT, a rich source of a scarce resource. Companies would organize presentations about what they did and why it was interesting and then invite audience members to apply for jobs. Certainly it was unusual for a company to turn down an invite to show up and get in front of 70 young folks studying Electrical Engineering and Computer Science and Aeronautical Engineering.

Readers: What do you think? Is on-campus recruiting suffering in the H-1B age?

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What it takes to welcome refugees and other immigrants

Our Towns: A 100,000-Mile Journey into the Heart of America by James and Deborah Fallows identifies the presence of refugees and immigrants as a sign of an American town’s success. What’s the price of success?

When the Sioux Falls public schools opened their doors in 2013, the biggest single group of these students, about one-third of the total (according to school district figures), were the 700 Spanish speakers, many of whom arrived in migrant worker families. As for the other two-thirds, when we visited, there were 259 Nepali speakers, 135 who spoke Arabic, 129 Swahili, 101 Somali, 93 Amharic, 84 Tigrinya (a Semitic language from the Horn of Africa), and 77 French. A very long tail of other languages included many I’ve never heard of, and I have been studying languages and linguistics all my life. Mai Mai had 27 speakers in the city, Nuer had 7, and then there were Grebo, Lingala—the list goes on.

The school programs start in the classroom and extend to tutoring, summer school, free lunches, and bus passes. They also look to whole-family success. Home-to-school liaisons do things like help schedule parent-teacher conferences and round up translators. Sometimes, translation involves the children’s game of telephone, where speakers pass on a message from one language to the next and the next, and then back again. Such details are fundamental to keeping the entire system working.

Where do you start acculturation with the ocean-deep discrepancies among the children? In refugee-rich Burlington, Vermont, one school’s population includes the daughter of the principal and a little boy whose life experience is so raw that he pees in the corner of the classroom because he can’t imagine a toilet in a restroom.

Although the authors are unreservedly positive about the benefits that low-skill immigration bring to Americans, the facts that they relate do not seem to support this perspective. Many of the “immigrant-rich” or “children-of-immigrant-rich” cities that they write about are remarkable for their poverty and lack of economic growth. For example:

The city’s population had long been more “majority minority” than the entire state’s—San Bernardino is now about 60 percent Hispanic, versus about 40 percent for California—and significantly poorer. The median household income in the city is under $40,000, versus over $60,000 for the state and over $50,000 for the country. San Bernardino is the poorest city of more than village size in California. When things went wrong for the country as a whole in 2008, they went worse for San Bernardino. Because its population was so poor to begin with and had lost so many previous sources of income, the debt levels on its real estate shot up during the subprime bubble of the mid-2000s and then home values fell extra hard, making the city one of the foreclosure centers of the country. Its unemployment rate neared 20 percent at the worst, and even as it improved it remained nearly twice the national level. In 2014, a WalletHub ranking put it dead last on a ranking of job prospects in 150 metro areas.

“We have one of the poorest communities in the nation, fifty-four percent of the population on some kind of public assistance. And our public school system is requiring that our taxpayers further invest dollars that they don’t have, for students just to barely get an entrance requirement for community college. That’s tragic. I couldn’t take that anymore. You’ve got to fix it.”

(The chapter on San Bernardino does not mention its most famous immigrant, Tashfeen Malik, or child of immigrant, Rizwan Farook, or the most famous recent event in San Bernardino, i.e., the 2015 shooting.)

Don’t feel bad for everyone in San Bernardino, though: “This city with a per capita income of $35,000 ended up paying its public safety workers total compensation of about $160,000 apiece, or about $40,000 more than the statewide average.”

Allentown, Pennsylvania is described as having gone from mostly white to “more than 40 percent Latino” and simultaneously to “a bombed-out-looking, high-crime shell of what had been until the 1980s an architecturally attractive and commercially successful downtown area.” Ultimately the city is restored to some extent with huge tax breaks that have drawn in development dollars and projects from other cities and towns in Pennsylvania. The FBI got interested in why certain developers happened to be favored in this public-private partnership and six local officials pled guilty to corruption. In October 2018, the mayor was tried, convicted, and sentenced to 15 years in prison.

How dramatic has the change in American demography been?

The history of the student population is very different from that of the staff. Since the late 1980s, the demographic composition of Dodge City’s [Kansas] students has dramatically changed. According to one estimate we heard from city officials, the Hispanic population in grades K–12 would have been about 20 percent in the 1980s, and is nearly 80 percent today. First Mexicans, then waves of others from Central American countries like El Salvador, Honduras, and Guatemala. Dodge City is, in effect, a “port of entry,” says Robert Vinton, the director of the Dodge City Migrant Education program, even though it is nearly seven hundred miles north of the border. The high school is about 70 percent Hispanic, with another 7 percent designated as “other,” which includes African and Asian immigrant populations; the rest are Anglo. In the high school, 36 percent of students are English-language learners.

Each August, some twenty or thirty new immigrant students are likely to show up. They continue to dribble in through May. The latest wave came from Guatemala, many of whom—even at the high school level—were entering a classroom for the first time and were illiterate. At home, conditions are often poor, and many families arrive with a rough history.

Among the social services I saw: counseling for students who are pregnant, who are already moms, who have incarcerated parents;

More than 50 percent of the students (not all of them migrants) in the DCPS are enrolled in well-established English-Language Learner (ELL) programs. The recently arrived Guatemalans have brought a new linguistic twist. While Guatemala is officially a Spanish-speaking country, roughly twenty-four indigenous languages are spoken there as well. For some who arrive in Dodge City, an indigenous language is their sole language. This forces the same kind of telephone-game translation system I saw applied in Sioux Falls, where a series of interpreters hot-potato a conversation from English to two or three other languages and back again.

In Dodge City, there are some illiterate teenage children arriving who “don’t know how to hold a pencil,” Vinton told me.

Deborah Fallows rides with “Sister Roserita Weber and Sister Janice Thome, nuns of the Dominican Order of Peace” as they serve the immigrants and children of immigrants in Dodge City, Kansas. There are “single moms” with up to six children. There are women trying to get Green Cards based on having been domestic violence victims (see “Au pair to green card” for how this works when done right). There is a family that needs a free ride from “a school’s summer free-lunch program to their trailer.”

Sometimes it seems that immigrants themselves are a resource to be mined by an otherwise failing town. The Rust Belt’s Rust Belt town of Erie, Pennsylvania, for example, is now 10 percent refugee:

I went to visit the starting point for Erie’s continuing flow of new arrivals: the field office of the U.S. Committee for Refugees and Immigrants (USCRI). It was already beginning to bustle before 9:00 a.m. on a hot August morning. A woman wearing a bright African cloth wrapped at the waist, with two little children beside her, was sitting on the concrete step in front of the building, waiting for something or someone. Clusters of others, mostly talking quietly in Arabic, were waiting inside in the stuffy reception area. A few of the staffers behind the reception windows were greeting everyone who came in. Along the narrow halls, there were day-care rooms, and there was a play area outside. Beyond some parked strollers and water dispensers, a language lesson was in progress; the instructor was juggling a meld of English grammar and culture for a dozen or more men and women seated at long tables.

Part of that summer bulge was the Zkrit family, who arrived in Erie early in June. In 2012, Mohammad Zkrit was living in Aleppo, Syria, with his young wife, Yasmine, and their two small daughters, and was working in a fabric factory. Then one day, his neighborhood was bombed by the forces of Bashar al-Assad. His house was destroyed, and he was injured.

After three years in Jordan, they were offered the chance to resettle in the United States. Zkrit, thirty-six, and his wife, twenty-six, and their growing family of four young children boarded a plane in Amman bound for Chicago and, ultimately, Erie.

The Fallowses visited in 2016, which means that Mr. Zkrit had been in the U.S. for about one year. How was a guy with experience in “a fabric factory” going to fare in the labor market of a state with no fabric factories? It turned out that he was unemployed, unable to command even the minimum wage of $7.25 per hour. Also, he did not speak English. Through an interpreter, however, he told the authors how happy he was in Erie and the U.S.: “America is my dream country.”

[Mr. Zkrit, with his lack of English, is not the most challenging refugee in Erie from a job placement perspective. The authors also write about “at least twenty-four deaf refugees from Nepal who live in Erie now.”]

How can a town survive with 10 percent of its population being unskilled unemployed refugees with four kids each? I wonder if the answer is harvesting federal subsidies. Our poorest cities often have sparkling new hospitals, built by mining elderly citizens for Medicare dollars. Could it be that Erie is mining refugees for the Federal Welfare that attaches to them? Each refugee is entitled to housing, health care, and food, all of which will be funded nationally, but purchased in the local economy.

The authors are negative on Donald Trump and imply that anyone who votes for him would be doing so out of “resentment,” “fear,” or “grievance.” They’re especially dismayed by Trump’s opposition to low-skill immigration. Yet their book shows that only a crazy rich country could possibly afford to run both low-skill immigration and a comprehensive welfare state.

More: Read Our Towns: A 100,000-Mile Journey into the Heart of America

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