THE GIST of Editorial for UPSC Exams : 05 August 2020 (More of the same: On Trump's signing of order against hiring H1B visa holders)



More of the same: On Trump's signing of order against hiring H1B visa holders


Mains Paper 2:International Relations 
Prelims level:H1B visa holders
Mains level: Effect of policies and politics of developed and developing countries on India’s interests

Context:

  • The list of U.S. President Trump’s attacks on the inflow of skilled foreign workers into the country continues to expand rapidly. 
  • The latest act from the White House seeking to potentially prevent such workers from participating in any federal government contracts indefinitely. 

Impact on India:

  • The executive order signed by Mr. Trump specifically targets the H-1B visa as one that purportedlyresults in the loss of jobs to U.S. persons owing to cheap foreign labour. 
  • Indian nationals tend to be granted 60-70% or more of visas in this category annually, which implies that the potential impact of this order on IT and ITES firms based in India could be considerable
  • This would produce a ripple effect in the bilateral economic space. 
  • The sense of shock that this order is likely to cause among those in corporate India who invest in the U.S. economy and create jobs there should hardly come as a surprise, given Trump’s support right from the beginning.
  • Even in April 2020 the White House announced that it would be suspending the issuance of green cards, effectively halting legal migration into the U.S. 
  • In June 2020, the immigration crackdown was extended via an order to stop processing new visas across several skilled worker categories, including H-1B visas. 
  • The latest order avoids the language of an outright ban on foreign workers joining federal government contracts.
  • It calls for a review of contracting and hiring practices by federal agencies, with a focus on foreign temporary workers and U.S. government-related services that were offshored to foreign countries.

 Rising unemployment:

  • To an extent, it is understandable that the weight of performance expectations that rests upon Mr. Trump’s shoulders is of immense magnitude. 
  • The economy, which was in fine fettle until the COVID-19 pandemic struck, appears to be grinding to a halt, with an expected surge in unemployment numbers to nearly 18 million jobless people. 
  • To describe the U.S. government’s response to the pandemic crisis as lukewarm would be generous. 
  • There is a high possibility that voters may punish Mr. Trump on November 3, 2020. 
  • However, instead of striking a positive note about finding the U.S.’s greatest source of economic resilience in the diversity of its people, Mr. Trump has steadily retreated deeper into the morassof hateful tropes about immigrants stealing jobs. 
  • This may well strike a chordwith his core support base of blue-collar workers across middle America who are undeniably in economic pain. 

Conclusion:

  • Bitter polarisationis a perennialtrait of the political landscape of the U.S., but it has rarely ever been as worsened as in the last four years.

Online Coaching for UPSC PRE Exam

E-Books Download for UPSC IAS Exams

General Studies Pre. Cum Mains Study Material

Prelims Questions:

Q.1)With reference to the draft Code on Wages (Central) Rules 2020, consider the following statements:
1. The normal working day shall comprise of “eight hours of work and one or more intervals of rest which in total shall not exceed one hour”.
2. The Centre shall constitute a technical committee which would advise on the skill categories, while an advisory board may recommend the minimum wage.

Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Answer: C

Mains Questions:
Q.1) What are H-1B visa and other visas? What are the implications of US’s move for barring H1B visa holders for federal jobs and broadly analyse the India-US relations?