Unemployment

Santa’s sweatshop

Electronic Arts developers work night and day to crank out hits like "Madden NFL 2005." But now the elves are revolting.

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Santa's sweatshop

The hottest new game from Electronic Arts these days isn’t “Madden NFL 2005,” a new installment of “The Sims,” or the latest title in the James Bond series “GoldenEye: Rogue Agent.”

No, the company’s unexpected smash hit is a Web-based soap opera of sorts. Call it “Electronic Arts: Rogue Employer.”

The characters are some of the company’s current and former employees — and their families — who have created an addictive drama simply by posting accusations online that one of the industry’s largest computer game shops, with revenues of $2.96 billion in its last fiscal year, routinely squeezes hundreds of hours of uncompensated overtime from its programmers and artists.

On Nov. 9, fed up after watching her fiancé work 9 a.m. to 10 p.m., seven days a week, with the occasional Saturday night off at 6:30 p.m. for “good behavior,” a woman calling herself only “EA Spouse” posted a lament online titled “EA: The Human Story.” The crux of her complaint: At Electronic Arts the long hours of crunch time, typical in the game industry in the final weeks before a big deadline or during efforts to rescue a faltering project, had expanded to encompass the entire development cycle.

“Every step of the way, the project remained on schedule,” she wrote. “The extended hours were deliberate and planned; the management knew what they were doing as they did it. The love of my life comes home late at night complaining of a headache that will not go away and a chronically upset stomach, and my happy supportive smile is running out.”

Since her tale of woe went live, it’s drawn 3,318 comments and counting on the original Web page, and hundreds more over at the geek news site Slashdot. The responses to EA Spouse’s story assure her that she and her partner are not alone: Posters joke with a gallows humor about their own experiences at E.A. doing “hard time” at “14 hours a day, 7 days a week.”

One claimed to work 179 days out of 180, averaging 85 to 90 hours a week. And just a few days after EA Spouse posted her story, a software engineer fired from Electronic Arts posted his own story using his real name, Joe Straitiff. Among his accusations: His manager had hung a sign in the office that read “Open 7 days.”

The criticism of Electronic Arts is hardly limited to online venting by geeks and their loved ones. The company is now facing a class action lawsuit that, if certified, could encompass hundreds of current and former workers at the company, including animators, modelers and environmental artists. The plaintiffs are seeking back pay for uncompensated overtime.

So much for the fantasy job of playing games all day for a living.

The uproar at Electronic Arts is a sign of yet another gut check for high-tech workers. We’ve come a long way from the dot-com boom days just a few years ago, when programmers and digital artists were celebrated for their tireless ability to work inhuman hours in pursuit of the start-up dream: creating something so new, so quickly it would make them all zillionaires. Back then, members of the high-tech labor force considered themselves a privileged elite, the backbone of the way new economy. Unions were for lefty wimps, antiquated relics of a bygone era, and Silicon Valley’s ability to trounce all competition was what made it great.

How quickly things have changed. Today, squeezed on the one side by outsourcing and low-priced foreign labor, and on the other by employers demanding more work for lower wages, programmers and designers are no longer keyboard-jockey heroes of the digital age. Instead, they are a new era’s commodity workers, reduced to desperately suing to try to get paid for the hours they work or publicly embarrassing their employers into at least giving them a free weekend now and again. In the new standard operating procedure, crunch time is all the time. And there’s little that anyone can do to help.

“What these employees are facing is totally a microcosm of the large structural trends that are impacting employees across the economy,” says Marcus Courtney, organizer for the Washington Alliance of Technology Workers. “Employees are working more hours. They’re getting compensated less. And the power of employers is increasing compared to the power of employees. Compared to other countries, U.S. workers work longer hours. Corporate profits are up, and wages are continuing to stagnate even though we’re more than three years into an economic recovery.”

Courtney adds, “What’s really unique about this is that these are highly skilled, highly educated workers who are facing these issues, who in the past would have been insulated from these broader structural changes.”

The Electronic Arts class action suit and the online fracas have sparked calls for a holiday boycott of the company’s products, some talk of unionization, and even an appeal for more humane treatment of employees from an industry association of developers. It’s also set off a flurry of news articles with headlines like “For Developers, It’s Not All Fun and Games” and “When Long Hours at a Video Game Stop Being Fun.” The official response from Electronic Arts has been tepid, little more than a statement that it offers workers competitive salaries and benefits.

Yet, while winning back pay may be possible in the courts, what these game makers really seem to want — a life — may prove to be more elusive. “California law does not prevent people from having to work 100 hours in a week,” says Courtney. In other words, you can’t just sue your way to a more reasonable work schedule. “They’re not going to change company practices in terms of excessive work hours,” he says. “The only thing a court case might be able to do is get them compensation, and that’s not even a guarantee.”

The woman behind the pseudonym EA Spouse has received so many hundreds of sympathetic e-mails in response to her essay that she has all but given up trying to respond to every single one individually. Still, she says that even so, she’s not terribly optimistic that the company or the industry will change, in part because of the attitudes of the very developers most affected.

“First, a lot of them still haven’t even accepted that it’s a problem, and they cause a lot of grief to those who actually want to have families or social lives and still work in the industry that they love. Second, the ‘cowboy’ mentality that’s been discussed seems to put this idea in developers’ heads that they need to be these existential heroes and sacrifice themselves for the good of video games everywhere. The corporations feed off of these mentalities and use them to exploit people,” she writes in an e-mail.

“I don’t see them altering their basic mentality to suck developers dry. The developers themselves will have to take a stand. It would be nice if that stand could be taken without involving lawyers or unions, but increasingly it seems that that won’t be possible.”

It’s unclear how much lawyers could help E.A.’s workers gain the time to have a life. A company like Electronic Arts can demand as many Saturdays and Sundays as it wants under federal law.

“There is no federal law that prohibits employees from working mandatory overtime,” explains Cathy Ruckelshaus of the New York-based National Employment Law Project. “They’re just forced to pay them. Supposedly, the employers are supposed to pay time and a half. But if they’re characterized as ‘exempt’ and forced to work overtime, the employer wins. It’s not an uncommon practice.” California, where Electronic Arts is located, does have some regulations regarding the maximum number of hours employees can work, but they apply to those in specialized and potentially dangerous fields — like the railroad, healthcare and airline industries– not game development.

Unlike the United States, the European Union has a 48-hour work-week limit, with some loopholes and exceptions. In Canada, after 48 hours, all overtime is voluntary and can’t be imposed by an employer. But in the United States, the strongest law limiting overtime is in Maine, where employees can be required to work only 80 hours of overtime in any given two-week period.

That law came about in 2000, after a lineman working to get the power back on after a storm toiled more than 90 hours with few breaks before he accidentally electrocuted himself, says John de Graaf, national coordinator for Take Back Your Time Day.

“In this country there are virtually no protections of any sort on workers’ time,” de Graaf says. “It’s rather bizarre that a recent law passed in 2000 that limits overtime to 80 hours every two weeks is really for all intents and purposes the best that we do here in the United States.”

In this environment it’s not surprising that a glam industry like computer gaming can attract hordes of eager programmers and artists willing to work as many hours creating games as they used to play them. “Hire young programmers. Wow them with free laundry service and a free snack machine, and then burn them out. So what if you lose a few? There will be more kids, raised on the PS2 [PlayStation 2], thinking they hit the motherlode when they are offered a job making video games,” wrote one poster on the Well, an online conferencing service, who asked not to be named. “This is not unlike the way the music industry (where I work) operates. Many, many interns and kids right out of college that we work to death. There are always more right behind them.”

Many see parallels between the gaming industry and the movie business — minus the formidable presence of Hollywood’s powerful unions. “One of the biggest challenges is that most people are too passionate,” says Jason Della Rocca, the program director for the International Game Developers Association, which published an open letter about workplace issues. “They’re willing to sacrifice anything to get into it and have a go at it.”

At the heart of the lawsuit against E.A. is another question: What is a game? Is it entertainment or a software program? In 2000, California exempted some programmers in the software industry from overtime laws. But those changes didn’t apply to certain techies in the entertainment biz.

Does the work of “image production” employees require enough creativity and skill to justify exempting them from overtime regulations? Or are they rather implementers executing the designs of art directors and producers?

“Under the labor code, we believe that this class of employees is not exempt from the overtime laws, and so that any work that they do in excess of eight hours a day or 40 hours per week, Electronic Arts is required to compensate them for at the rate of time and a half,” explains Miranda Kolbe, an attorney for Schubert & Reed. The San Francisco law firm first brought the suit against Electronic Arts in July on behalf of Jamie Kirschenbaum, a digital artist. “Right now E.A. doesn’t pay them at all for that time. They get a salary that covers them 40 hours a week. And any time that they put in above 40 hours is uncompensated.”

But if an employee is properly classified as “exempt,” then there’s virtually no limit to the number of hours that he or she can be required to work, as long as that compensation “satisfies the minimum wage,” according to Todd Heyman, an attorney for Shapiro Haber & Urmy in Boston, which is also representing plaintiffs in the Electronic Arts case. In other words, as long as the number of total hours divided into a salary doesn’t work out to be less than minimum wage, any number of Saturdays and Sundays can be required without comp time. (Under a new law passed in California in 2000, programmers must make at least $44.63 an hour to be exempt. According to Game Developer magazine’s 2003 annual salary survey, programmers in the game industry make less than that on average, pulling in around $77,000 a year. Artists and animators in the business make an average of about $57,000.)

The Electronic Arts lawsuit does not address the issue of the numbing hours of work itself. “We don’t have a legal claim in our case making out that E.A. has made people work some excessive number of hours, and that in and of itself constitutes a violation,” says Kolbe. “We’re just claiming that they need to pay the employees for the hours that they actually work.”

But one point of overtime law, and the time-and-a-half pay it requires, is to encourage companies to either hire more workers to get a job done or demand fewer hours of the workers that they already employ. The lawyers for the plaintiffs in the Electronic Arts case believe that if the company is forced to pay up for all those extra hours, the number of hours will fall: “Were Electronic Arts paying people overtime wages for the overtime worked, you would probably see people working less overtime,” says Kolbe. “That’s just speculation, but at some point, it’s just not economical.”

From the online discussion about the conditions at Electronic Arts, it’s easy to see that the problem is not confined to a single workplace. The consolidation of a young industry that’s union-free and full of eager young recruits has created a situation where it’s easy to work people as long as their employer likes.

Della Rocca, from the International Game Developers Association, says that long hours are common in the industry: “I don’t want to suggest that every single game studio on the planet is a sweatshop. But that’s something the industry as a whole is dealing with, and I would not say it’s isolated to any one company.”

He hopes that enlightened self-interest will lead companies to take a more worker-friendly tack: “Whether it’s rookies or veterans or whatever, it’s proven that overworking your staff is not going to get good or productive work out of them. If you send people home to have a life, walk the dog, see a movie, and have a good night’s sleep, they’ll be more productive. After about eight hours of work you make more problems than you’re solving by putting more bugs into the code.”

But even Della Rocca admits that’s a hard argument to make stick in the face of Electronic Arts’ monstrous commercial success — 27 of its titles sold more than a million copies each last year — not to mention its stock market heft: “Will [overworking the employees] be their demise? We have no way to tell if eventually, it will,” he says. “But it’s setting a bad example.”

Which really raises the question: Without tougher laws or organized employees, what incentive does Electronic Arts or any other company have to do things differently?

“EA’s attitude toward this — which is actually a part of company policy, it now appears — has been (in an anonymous quotation that I’ve heard repeated by multiple managers), ‘If they don’t like it, they can work someplace else,’” the EA Spouse wrote in her online lament. ‘Put up or shut up and leave: this is the core of EA’s Human Resources policy.’”

Whitman’s lesson for Romney

Layoffs at Hewlett-Packard show why business leaders aren't automatically a good fit for the White House

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Whitman's lesson for RomneyMitt Romney and Meg Whitman (Credit: AP/Chris Carlson)

When Meg Whitman ran for governor of California in 2010, the former eBay CEO told voters that her business background made her the right choice to boost job creation in a state troubled by high unemployment. Sound familiar? It’s the same spiel we hear from Mitt Romney every single day.

As a consolation prize for getting clobbered by Jerry Brown in the gubernatorial election, Whitman landed a plum job of her own — CEO of Hewlett-Packard, a company that, like California, has been going through some tough times. But this week Whitman made clear that as a business leader, her approach to job creation doesn’t quite mesh with her political promises. Multiple media outlets are reporting that HP is planning to cut its workforce by around 30,000 jobs — a number that accounts for 7-8 percent of HP’s total workforce.

Whitman’s decision will probably result in some layoffs in California, but it wouldn’t be fair to label her an outright hypocrite on the basis of this strategy alone. Downsizing may well be the right course for Hewlett-Packard, which is having a hard time adjusting to an era where computing is moving to the smartphone and leaving the PC far behind. But there’s a data point in the New York Times’ report on the layoffs that deserves close attention: “China, which is one of H.P.’s highest growth areas, will probably be spared.”

Again, this makes strict bottom-line sense. Hewlett Packard, by its own admission, now derives around 60 percent of its revenues from overseas. China is the world’s fastest-growing market for computer gizmos. Cutting staff in China would be suicidal. And HP’s behavior is in no way extraordinary. In April, the Wall Street Journal reported that between 2009 and 2011, fully three-quarters of the new jobs created at the 35 largest U.S. multinationals were overseas. And this isn’t just about offshoring to cheaper labor. Overseas is where the demand is.

The job creation plan outlined by Whitman when she ran for governor included cutting red tape, lowering various government fees, and tax breaks. Again, it’s an agenda that maps quite closely to Romney’s — and that’s no accident: Whitman was Romney’s finance chair during his 2008 campaign, and hosted a California fundraiser for him in March. But while cutting regulations may boost corporate profits,  it doesn’t do a darn thing for boosting demand. HP is probably more likely to take the money saved via a tax break and spend it on a new R&D center in Shanghai than it is to staff up in Silicon Valley.

All of this explains why having an illustrious business resume doesn’t mean that one is automatically qualified to occupy the White House in a time of economic stress. Business executives have a mandate to act in their own self-interest — to seek profit by any means, including  downsizing in the U.S. and pouring resources into China. That’s why HP’s “Government Affairs” page stresses its support for ” free trade and the reduction of barriers across borders,” even in the face of growing evidence that outsourcing to China has a negative impact on U.S. job creation.

A political leader is supposed to think in terms of the larger public interest — which means things like figuring out how to fund education or pay for the social welfare net that protects the unemployed and feeds the hungry. California’s voters figured that out when they rejected Whitman. Once again, it will be interesting to see where the general public at large comes down in the case of Romney.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

David Brooks, “structuralist”

The New York Times moderate says the welfare state is unsustainable, and buys himself a new $4 million home

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David Brooks,

David Brooks is everything that’s wrong with elite opinion in America. The president reads him and takes him seriously. That is why the opinions of venal faux “reasonable” clowns like Brooks matter. Brooks today sums up the new argument for not actually doing anything to alleviate worldwide unnecessary hardship: The problem is “structural,” not “cyclical”!

Long Op-Ed short, Brooks says “cyclicalists” (unnamed) think we should deficit-spend our way to prosperity, because, according to Brooks, they believe that “the level of government spending is the main factor in determining how fast an economy grows.” (No one actually believes this.) But according to Brooks, all of our problems are “structural,” which is to say that the reason we have mass unemployment and debt and growing wealth disparity is because of “technological change” and crappy schools. And “special-interest deals” in the tax code.

The point of the Brooks argument is simply to make continued non-action to address actual short-term pressing problems sound serious and wise. He’s not even making a partisan argument, you see. Oh, people on “the left” have been having their silly little debate, but all the serious people — “some on the left but mostly in the center and on the right” — have accepted the sad truth, like Brooks. And Brooks is soberly explaining the situation. He is not at all responding to Paul Krugman, his fellow New York Times columnist, who has lately taken to fiercely rebutting arguments put forth by various unnamed “centrists” and “moderates” in his columns.

This is Brooks’ conclusion:

But you can only mask structural problems for so long. The whole thing has gone kablooey. The current model, in which we try to compensate for structural economic weakness with tax cuts and an unsustainable welfare state, simply cannot last. The old model is broken. The jig is up.

It’s so sad, but everyone will now just have to accept that social democracy is an impossibility. We have learned that “the old economic and welfare state model is unsustainable,” so shut up about your unemployment benefits running out and there being no jobs still. (Silly me, here I was thinking the recent massive international financial crisis actually exposed post-industrial capitalism as the “unsustainable” thing.)

Ezra Klein has the rather polite, policy-based response to Brooks’ argument: Essentially that even if Brooks is right about America’s structural problems needing to be addressed, we should still also give poor people money and indebted people relief and spend money on infrastructure improvements to prevent these structural problems from becoming even worse.

Dean Baker has the response in which it is pointed out that Brooks is full of predictable, repetitive shit. The “we have no jobs because of technology and also there are plenty of jobs but unemployed people have the wrong skills” line is as old as the Great Depression and there is no actual evidence for it. It’s just what people who want to sound serious while dismissing efforts to spend money on economic stimulus say.

Hey, let’s check out some recent real estate news at the Washington Post’s Reliable Source blog, for fun. Looks like a Mr. David Brooks just bought himself a $3.95 million home in Cleveland Park!

The New York Times op-ed columnist and wife Sarah are trading up — from their longtime home near Bethesda’s Burning Tree Club to a century-old (exquisitely renovated) five bedroom, four-and-a-half bath house in Cleveland Park. It includes a two-car garage, iron and stone fence, generous-sized porch and balcony, and what appear to be vast spaces for entertaining. The timing seems to have been right: After only a few days on the market, their old place (which also boasts five bedrooms) is under contract for $1.6 million.

Whoops, sorry about your welfare state collapsing, 12 million out of work Americans, but it was just too “unsustainable” to keep you employed — you should all consider developing new skills and trying to find more “productive” work, like writing bullshit columns for the New York Times, maybe.

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Alex Pareene

Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene

Bush vs. Obama: Jobs

During George W.'s first term, big government boosted employment. For Obama, it's the opposite

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Bush vs. Obama: JobsGeorge W. Bush and Barack Obama(Credit: Reuters/AP)

There is a number buried in today’s government labor report that deserves closer examination: 35,000. That’s the net number of private sector jobs created during the Obama administration to date. That’s right, it’s a positive number. After the worst economic disaster to befall the United States in 80 years, that’s a number that maybe we should be applauding. Remember: The private sector hemorrhaged more than 2 million jobs in the first three months of 2009 alone. The hole was deep.

Unfortunately, it’s still a tiny number, and it is dwarfed by a much larger figure: 607,000. That’s the number of public sector jobs — federal, state and local — that have been lost since Obama took office. It’s a story that probably isn’t getting told enough about the Obama administration: Big government keeps getting smaller.

But the real eye-opener comes when we compare Obama’s numbers to George W. Bush’s. In Bush’s first term, the economy shed 913,000 private sector jobs! 913,000! The only thing that saved Bush’s first term from being a complete economic disaster, in terms of employment, was robust public sector growth: The economy added 900,000 government jobs. One wonders: Without the massive growth in the public sector during Bush’s first term, would he have been reelected?

This is interesting for a number of reasons. First, it punches a big hole in the theory that Bush’s tax cuts were responsible for boosting employment during his first term. Let’s also recall that the Bush recession (which he inherited from Clinton) was far, far milder than the near-Depression Obama inherited from Bush. In that context, Obama’s performance resuscitating the private sector has been miraculous. The Washington Post published an article criticizing Obama for not doing enough to resist job losses in the public sector, without fully acknowledging the political impossibility of additional stimulus after the first round, but we haven’t heard all that much over the years about how the growth of government saved Bush’s bacon.

Of course, Obama isn’t running against Bush, so that’s moot. But as this presidential campaign heats up, it might be worth periodically reminding ourselves: Bush led the U.S. economy out of a weak recession with strong public sector growth. Obama is leading the U.S. economy out of a near-death experience while a steadily shrinking government swells the unemployment rolls. Which magic trick do you think is harder?

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

Another jobs report downer

The U.S. economy underperforms again in April, creating only 115,000 jobs. You can almost hear Mitt Romney cackle

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Another jobs report downerJob seekers wait in line during a job fair in Portland, Ore., on April 24. (Credit: AP/Rick Bowmer)

The U.S. economy is stuck in spring mud. For the second month in a row, the United States labor market underperformed expectations. According to the Bureau of Labor Statistics, the economy created a lackluster 115,000 jobs in April. The unemployment rate fell one notch, to 8.1 percent, but for a distressing reason: The overall size of the U.S. labor force dropped by 342,000, a sign that hundreds of thousands of Americans simply gave up looking for work in April. The labor force participation rate fell to 63.6 percent, the lowest mark since 1981.

The only good news in the report: The numbers for February and March were both revised upward, from 240,000 to 259,000 in February, and from 120,000 to 154,000 in March. The economy is still growing.  Indeed, over the past 12 months, the U.S has added 1.8 million private sector jobs.

The glum report comes as little surprise. While economic data points were all over the map in April, some key indicators — jobless claims, Wednesday’s ADP private sector labor report, and the first estimate of GDP growth for the first quarter of 2012 — all suggested that the economic recovery that seemed so robust over the winter was losing steam. The numbers aren’t bad enough to justify outright panic; Americans are still lustily buying cars, the manufacturing sector appears strong, and gas prices are dropping steadily for their recent highs  – but it’s still very difficult to see signs of sustained momentum. This is the economy we’ve got right now. We can’t even blame austerity: Government payrolls dropped by only 15,000.

Ironically, on Thursday, Gallup’s presidential approval survey showed Obama at 51 percent, the highest mark he’s received since Seal Team Six took out Osama bin Laden. Conventional wisdom has assumed that Obama’s steadily improving approval ratings tracked the growing economy. If so, it will be interesting to see if those numbers start coming down again.

Mitt Romney, as one might expect, is already on the case. He promptly told Fox News that it was a “terrible job report.” That, strictly speaking, is not true. A “terrible” jobs report is one in which the economy loses half a million jobs or more in a single month — as was the case when Obama took office in 2009. (In fact, economist Justin Wolfers tweeted, April’s jobs report marks a milestone of sorts: Private sector job creation is, for the first time, in positive territory for the entirety of Obama’s term. Since January 2009, the private sector has added 35,000 jobs. The public sector, in contrast, has shed 607,000. So much for Big Government!)

April’s jobs report is disappointing, and could signal worse news to come, but there’s still a decent chance that we are just experiencing a bump in the road. By most measures, the U.S. economy is performing much better than it was a year ago.

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Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

Healthcare’s foreign invasion

Obama risked a trade war with China about manufacturing -- so why isn't he outraged about medical jobs?

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Healthcare's foreign invasion (Credit: gualtiero boffi via Shutterstock/Salon)
This article was adapted from the new book, "Insourced", available May 8 from Dartmouth College Press.

Approximately 15 percent of all healthcare workers and 25 percent of all physicians in the United States were born and educated elsewhere. This means that 1.5 million healthcare jobs are “insourced,” occupied by foreign-born, foreign-trained workers brought into the United States on special visas earmarked for healthcare jobs. This number is 50 percent greater than the total number of jobs in the U.S. auto-manufacturing industry. It’s amazing to consider that in 2008 and 2009, the auto industry, which makes up just 3.6 percent of the U.S. economy, received a $97 billion bailout. If we estimate that each of these 1.5 million insourced healthcare jobs has an average wage of $60,000, that’s $90 billion a year in wages going to people brought into the United States to work rather than training Americans to do the same jobs.

The healthcare industry makes up 16 percent of our economy. Yet even in these days of close to 10 percent unemployment, we do not invest enough money in our young people to train them for jobs in healthcare — an already understaffed industry that will have to serve an additional 32 million people once the provisions of the 2010 health-reform law take full effect. Instead, when faced with pressure from hospitals and nursing homes for more healthcare workers, the federal government grants visas to import nurses, physicians, pharmacists, physical therapists, and many other types of healthcare workers from countries that can ill afford to lose them.

In some U.S. industries, the outcome of globalization is positive or neutral. Take the sugar industry. Due to lower labor and land costs and better weather conditions, it’s far cheaper to grow sugar cane in the Caribbean than sugar beets in North Dakota. As import taxes fall, global transportation improves, and the number of sugar beet farms in the United States declines, more Americans are sweetening their cereal with sugar from Jamaican sugar cane. Americans save money buying cheaper sugar; the economy of the poorer sugar-growing countries improves, lifting thousands of people out of poverty; and the few displaced American sugar beet farmers generally find other work. But sugar is not a strategic commodity. If CARICOM, the Caribbean Community, were to halt sugar exports to the United States, we would experience no crisis. Sugar is not essential to our diet or life, and we have plenty of substitutes, from honey and corn syrup to NutraSweet. If necessary, within a year we could again be producing sugar in the United States.

The U.S. healthcare industry is 200 times larger than the U.S. tire-manufacturing industry, yet President Obama risked a trade war with China, our biggest trade partner, over tires. He was understandably trying to protect well-paying manufacturing jobs for American workers. Yet each year, we bring thousands of nurses from China to work in even better-paying jobs rather than train young people in this country to become nurses. The irony is that the economic costs of “insourcing” healthcare workers, including the loss of jobs no longer available to Americans, are far greater than the costs when we import Chinese tires. In 2003 the Commission on Graduates of Foreign Nursing Schools (CGFNS), a U.S.-based nongovernmental organization that administers the U.S. nursing licensing exam for foreign-trained nurses, opened a testing center in Beijing. The opening of this center initiated a “mushrooming” of new nursing schools in China and led to credible predictions that China will soon surpass the Philippines as the number one source of foreign-trained nurses imported to the United States.

Given the publicity and furor over the loss of manufacturing jobs, the lack of protest over healthcare-worker insourcing is surprising. Congress passed legislation and President George W. Bush signed a law in 2007 to protect the American sock industry from the rival Honduran sock industry. Yes, that’s right: socks. Protecting a few hundred $15-an-hour sock-manufacturing jobs based solely in the small town of Fort Payne, Ala., was worth acting on. Yet insourcing hundreds of thousands of $60-an-hour healthcare jobs has prompted no such similarly high-level response from our leaders.

Instead, on a regular basis, Congress approves and presidents from both political parties sign legislation to enable the legal entry of an ever-increasing number of foreign healthcare workers. Each year, about 20,000 new healthcare-specific visas are issued for these workers.

The United States has traditionally not allowed strategic industries to be outsourced. That’s why the U.S. steel industry and the U.S. car industry have received bailout after bailout. Access to enough steel and automobiles is essential to our economy; without a sufficient supply of each, our economy would be severely damaged. It’s time we acknowledged that the health of the population is just as important as steel and autos in keeping our economy strong. Healthcare is too important to risk continuing to insource it.

It’s not just a matter of protecting and expanding jobs for American workers. Every year, thousands of Americans die, and the health of thousands more is compromised, because of the shortage of healthcare workers in every one of the healthcare professions.

On the surface, insourcing may appear to be a harmless or even win-win solution to the country’s healthcare-worker shortage. The hospital receives a much-needed worker, and the worker escapes life in a struggling country for a better life here. But we should be training more people in this country to work in those professions, especially people from poor and minority communities. Rather than investing in our own people and communities, however, the U.S. government has decided to take the best and brightest workers from struggling countries.

Many foreign-trained healthcare workers, no matter how smart, are not adequately prepared for practice in the fast-paced, high-tech world of U.S. medicine. Whether in operating rooms, hospital wards, or nursing homes, inadequately qualified and poorly oriented foreign healthcare workers endanger the lives of their patients, as well as the lives and careers of their American-trained colleagues.

But the main reason for this country’s rise in unnecessary deaths and delayed care is understaffing — a result of the failure to train and place enough healthcare workers, especially in rural and underserved communities. Americans who live in rural areas make fewer visits to healthcare providers and are less likely to receive preventive care. The infant-mortality rate for African-Americans is twice that for the average American; Latinos are twice as likely as white Americans to die from diabetes. These health disparities are due in large part to a lack of healthcare workers, especially primary-care workers, in their communities. The quick fix has been importing foreign healthcare workers for these unfilled positions. Unfortunately, once these workers fulfill their initial contracts, most move to communities without healthcare-worker shortages; in fact, foreign-trained healthcare workers are more likely to practice in the well-served, major metropolitan areas than their American-trained counterparts.

Even if good foreign-trained healthcare workers were here in numbers adequate to meet our needs, the U.S. healthcare system is about encounter a tidal wave of demand as 78 million baby boomers approach their 60s. Older people make, on average, six visits to a healthcare provider a year, compared with two visits per year for people under 60. The healthcare workforce is aging, too: More than 50 percent of practicing healthcare workers are eligible to retire during the next 10 years, which will leave us with fewer workers to treat more and sicker patients.

In the eyes of employers, of course, insourcing healthcare workers appears to offer many benefits. Most doctors and nurses in developing countries earn a fraction of what American doctors and nurses earn: A Caribbean nurse makes around $1,000 a month; an Ethiopian physician, about $100 a month. Not only are many foreign-trained healthcare workers accustomed to lower salaries and quality of life, but they also carry little or no education debt, while their American-trained colleagues typically graduate with five- and six-figure debt burdens. With average student debt burdens of $155,00011 for newly graduated physicians and $30,375 for nurses, American-trained health workers require a higher salary just to help pay for their education. Trained in a much more hierarchical environment, foreign workers are much less likely to unionize, or even express dissatisfaction with their work. As the percentage of imported healthcare workers increases, their attitudes toward salary and terms of employment undermine the bargaining power of U.S. workers, and even affect the important feedback loop between employees and management.

Polls indicate that 70 to 80 percent of Americans want to reduce the rate of immigration into the United States. Yet the American public is not aware of our policy of using healthcare-worker-specific visas to solve the healthcare-worker shortage.

Some legislators who publicly support stabilizing immigration consistently vote to increase the number of healthcare-worker-specific visas granted each year. It’s not that American citizens don’t want to become healthcare workers and fill these jobs. This distinction is critical, because every industry that has brought in foreign workers has argued that American workers won’t do the work for the prevailing wage, or won’t do the work no matter how high the pay is. In the healthcare industry, this argument does not apply. U.S. citizens want the jobs. They just can’t access the training. The United States does not have enough positions in health-professional schools to meet industry demands.

The tens of thousands of qualified nursing school and medical school applicants who are denied entry to school each year permanently lose out on their chosen careers, work that is consistently ranked in the top tier of salaries, with excellent benefits and almost guaranteed job security. This loss of career opportunity is even greater for rural and minority young people, who are grossly underrepresented in the higher-level health professions, such as physicians and nurses, and overrepresented in the lower-level professions, such as technicians and home health assistants. Something is wrong when so many young Americans are forced to pursue other, lower-paying careers at a time when we desperately need more healthcare providers. In exchange we get foreign healthcare workers who are less well trained (they consistently score lower on licensing exams than U.S.-trained healthcare workers) and far less culturally competent than native-born Americans.

The most tragic and most preventable effect of our hiring so many healthcare workers from other countries is the unnecessary deaths of hundreds of thousands of men, women and children in developing countries. The World Health Organization (WHO) estimates that each year more than 10 million people die needlessly, from easily treatable maladies such as diarrhea, pneumonia, malaria, tuberculosis, vaccine-preventable diseases, and complications of childbirth. The WHO Global Health Workforce Alliance estimates that there are a billion people alive today who will never see a health worker in their lives. In Ethiopia, one in 10 Ethiopian children will die before his or her fifth birthday — yet there are more Ethiopian physicians in the Chicago area than in all of Ethiopia, which, with 80 million people, is the second most populous country in Africa. As their most skilled nurses emigrate to work in U.S. nursing homes, middle-income countries such as Jamaica and Trinidad have nurse-vacancy rates of 60 percent or higher.

Throughout the developing world, nurses, pharmacists, physical therapists, and many other types of healthcare workers are being approached and offered 10 times their salaries to practice in modern U.S. healthcare facilities with state-of-the-art technologies. Even the most dedicated, socially conscious worker would be tempted by such an offer. A colleague of mine relayed a conversation he’d had with the head of the Nursing Council of Kenya, who told him about the damage the exodus of senior nurses was doing to her country’s healthcare system. In the next breath, she confessed that the next time he visited Kenya, she might not be there. She was thinking about emigrating herself.

Our unofficial policy of relying on the world’s poorest countries to pay for the training of workers whom we then entice and bring to this country is devastating healthcare systems around the world. The loss to a developing country when a single physician, representing what may be a significant portion of their total number of physicians, emigrates is far greater than our gain. Our failure to provide education for our own citizens and to better plan for healthcare staffing and distribution does not justify poaching nurses and physicians from the countries that can least afford to lose them. How many additional deaths, how much more needless disability and suffering, will we allow this misguided policy to cause?

And consider American competitiveness. Certain industries are vital to U.S. global leadership. Recognizing their importance, we protect those industries. We don’t allow them to move overseas and make the United States vulnerable to the actions of other countries. Poor farmers in the developing world can certainly grow food staples more cheaply than American farmers do. But because of the strategic importance of the U.S. food supply, we subsidize some basic food crops, such as corn and soybeans.

And yet we are overreliant on foreign healthcare workers to meet our most basic health needs. This is particularly dangerous because many countries, almost completely drained of healthcare workers and tired of subsidizing the U.S. healthcare system, are trying to slam the door shut for emigrating healthcare workers. Meantime, of the world’s wealthiest nations, the United States has the worst health outcomes, with lower life expectancies and higher rates of deaths from preventable causes. In infant mortality, for instance, we rank 27th, behind Poland and Hungary. Our disability levels are higher than in most former Soviet countries.

If the United States is to remain competitive in the global economy, we need a healthy workforce. In order to achieve that, we need a healthcare workforce made up of adequate numbers of properly trained physicians, nurses, pharmacists, community-health workers, and other healthcare providers.

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Dr. Kate Tulenko is a physician with degrees from Harvard University, Cambridge University and the Johns Hopkins School of Medicine. The former coordinator of the World Bank's Africa Health Workforce Program, she currently serves as director of clinical services for a global health nonprofit.

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