The temptation of cheap labor is bad for innovation, productivity, civic solidarity and national strength, Vice President JD Vance told business leaders at the American Dynamism Summit on Tuesday.
The promise of cheap labor is “a drug that American companies have become so obsessed with so many people…” [and] Globalization's hunger for cheap labor is exactly the problem because it's bad for innovation,” Vance said. I said His investor audience, add:
Both our working people, our masses, our innovators, and our innovators gathered here today have the same enemy, and I think the solution is American innovation.
“Real innovation makes us more productive, but it also respects our workers' dignity. It raises our standard of living. It strengthens our workforce and the relative value of that work.” speech.
The statement shows how Vance is trying to repair the political bridge between party voters and business leaders that was deliberately destroyed by the ruthless immigration policy promoted by two Bush Presidents. Two Presidents of Bush dramatically expanded legal and illegal migration to inflate the stock market with cheap labor, consumers and more renters.
“When it comes to globalization, there were two conceits that the leadership class had,” Vance said.
The first is to assume that making something can be separated from the design of it. The idea was that rich countries moved further up their value chains, while poor countries created something simpler. When you open your iPhone box, you'll say “It's designed in Cupertino, California.” Of course, the meaning is that it is manufactured [in China] Or somewhere else. And, yeah, some people may lose their jobs in manufacturing, and they could learn to use design or very popular phrases and “learn the code.”
But I think we got it wrong. The manufacturing area proves to be very good at designing things. As you understand it well, the companies that design products have a network effect that works with the companies that manufacture them. They share intellectual property, best practices, and sometimes important employees.
Now we assume that other countries will always chase us in the value chain, but we see that as they get better at the low end of the value chain, they've started catching up to the high end [so] We squeezed it from both ends.
Now that was the first conceit of globalization. Second, I think cheap labor is basically crutches and crutches that hinder innovation. I might even say it's drugs that have made too many American companies addicted.
Now, if you can make your products cheaper, it's too easy to do it rather than innovate. And whether we monitor factories offshore into the cheap labor economy or import cheap labor through the immigration system, cheap labor has become a drug for the Western economy.
And if you look at almost every country, from Canada to the UK, which imported a large amount of cheap labor, I think productivity is stagnating. That's not a complete coincidence. I think the connection is very direct.
Now, for example, one of the arguments we've heard about minimum wages is the increase in the minimum wage forces automate. So McDonald's higher wages make more sense [service] kiosk. And whatever your opinion on minimum wage wisdom, I'm not going to comment on it here… [we think] Without a cheap labor, companies that innovate are good.
I don't think most of you are worried about getting cheaper and cheaper effort. You are worried about less and more about innovation, building new things, and creating old technology. You're all trying to do more with less than you can every day. And I ask my friends, both on the tech optimist side and on the populist side, so that the failure of the logic of globalization is not seen as a failure of innovation.
Certainly, I think globalization's hunger for cheap labor is a problem just because it was a bad thing for innovation. Both our working people, our masses, our innovators, and our innovators gathered here today have the same enemy, and I think the solution is American innovation.
…
Our goal is to encourage investment in our own borders. Our own business, our own workers, and our own innovations. We don't want people to want cheap labor. I would like them to invest in the United States and build it.
Breitbart News has posted many articles on the detrimental impact of Migration on productivity and innovation, and wage increases that are pressured by wage growth companies to invest in automation and productivity in wage boosts.
For example, the Fortune 500 is increasingly importing foreign white-collar labor to reduce costs. However, programs created by Congress and executives, such as H-1B, J-1, L-1, CPT, and other visa programs, have debilitated Indian-style office politics and imported them into a wide range of important US companies, including Intel, IBM, Twitter, and Boeing.
The damage was recently lit up by Citibank and announced it would become sharper reduce Reliance on foreign contractors after contractors cost the company at least $600 million Routine operations and Incompetent regulation. The decision means Citibank will begin hiring at least 10,000 American technology professionals for jobs held by perhaps inexpensive Indian visa workers.
In 2024, the Congressional Budget Office predicted that President Joe Biden's immigration policy would reduce US productivity growth.
Vance told listeners that the demand for cheap labor from the elites has also broken society.
Populists think that when they look at the future, and compare it with what happened in the past, many people see the alienation of workers from their work, their sense of solidarity from the community. You see people's alienation from their sense of purpose. And importantly, they see leadership classes that they believe welfare can replace work, and the phone application can replace a sense of purpose.
…
Now I remember dinner in Silicon Valley, especially. I was sitting in my tech days when my wife and I were talking to some of the leaders of important tech companies in the US…
And I remember one of the tech CEOs I was there knowing that if I mentioned it, you know that he's name. He was the CEO of a multi-billion dollar company. He said, “Well, I'm not worried about the loss of purpose when people actually lose their jobs.” And I said, “Now, what do you think will replace that sense of purpose?” And he said, “Digital, completely immersive game.”
The same economic and civic problems are occurring in the UK, Australia and Germany, where national leaders are inflated the economy with immigrants, reducing average income and prosperity.
For example, immigration forces divert investments in housing and consumerism away from factory automation and high-tech research.
Economic damage is being noted by business leaders facing the competing temptation to either make short-term profits through immigration or to increase long-term productivity and innovation through investment in American employees.
“In developed countries, you can argue that the big winners are countries that are shrinking population,” says BlackRock founder Larry Fink I said At the 2024 Proglobalist event hosted by Saudi Arabia's World Economic Forum. He continued:
That's something most people have never spoken about. We were always thinking [a] A shrinking population is the cause of negative results [economic] growth. But in my conversation with leadership in these large developed countries [such as China, and Japan] It has a xenophobic anti-immigration policy, they won't allow anyone to enter – [so they have] Reducing demographics – these countries will rapidly develop robotics, AI and technology…
If there are all the promises that change productivity, I think most of us will [emphasis added] -We can improve individuals' standard of living and individuals' standard of living, even when the population is reduced.
