more on Tech: A 'hostile environment' for US natives????

[David Farber <dave () farber net>]

Begin forwarded message:

From: gep2 () terabites com
Date: May 8, 2005 1:52:30 AM EDT
To: dave () farber net
Subject: [IP] more on Tech: A 'hostile environment' for US natives????


> Ignoring the question of supply for the moment, being a developer is
a business, and like any other business, must have a higher income
than expenses.  For the purposes of my example here, I'm going to use
San Jose, since it has more jobs for developers than anywhere else in
the United States.

[snip]


> According to Bank of America's online mortgage calculator, and
assuming a 10% down payment of $65,000 and a 6.5% interest rate on a
30-year fixed rate loan, you will need an annual household income of
$150,000 in order to be able to afford to purchase that median
house.  This is an optimistic number based on no other debt payments
(no school loan, auto loan or credit card payments), and gives a
monthly housing payment of approximately $5,000.


> According to the U.S. Department of Labor Bureau of Labor Statistics
(http://www.bls.gov/oes/current/oes_ca.htm#b15-0000), in November of
2003, the average annual pay for computer programmers in California
ranged from $74,040 to $89,000.  Assuming a household that has two
people earning this level of money, they can barely afford to
purchase the median house.

[snip]


> Now, based on the idea that developers must compete on price on an
international basis, where do you propose that a developer living in
Santa Clara County should cut their expenses so they can afford to
deliver their services at a significantly lower price?

Let's put a more realistic face on this problem.

I proposed doing some contract programming for a potential client (he  
runs a
service for political activists... I was prepared to even do a chunk  
of the work
on a 'pro bono' basis... but obviously, I have to live and pay my  
bills).

He ended up hiring a FULL TIME programmer in India, (and who I'll  
readily grant
is probably reasonably competent) who he's paying the "international  
basis"
price of... are you ready?... $450 a month.

Now, suppose you folks talking about US programmers needing to be  
"less greedy"
and more competitive price-wise with the international competition...  
tell me
just how I can seriously compete with someone in another country  
who's delighted
to do essentially equivalent work for (what to him is a princely  
salary) $450 a
month?

And more to the point... just which professions here in the USA do  
you feel are
NOT going to subjected to this sort of (crushing!!!!) outsourcing  
pressure?  And
do you think that the US economy can survive on those alone, whatever  
few they
are?

Gordon Peterson                  http://personal.terabites.com/
1977-2002  Twenty-fifth anniversary year of Local Area Networking!
Support free and fair US elections!  http://stickers.defend- 
democracy.org
12/19/98: Partisan Republicans scornfully ignore the voters they  
"represent".
12/09/00: the date the Republican Party took down democracy in America.




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