EuroWire January 2015

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Transatlantic cable
January 2015 27
† Solar is creating jobs. Solar industry jobs have increased
50 per cent in the US since 2010. Solar workers now
outnumber coal miners nearly two-to-one. (Source: IEA)
† The cost of installing solar panels in a typical (6 kW) house
has dropped nearly 70 per cent (from $90,000 to $10,000)
since 1998. (Source: National Renewable Energy Laboratory)
† Solar economics are improving. The average cost of solar
panels per watt has dropped from $75 in 1972 to less than
$1 today. The estimated cost of a Chinese-made solar panel
in 2015 is 42 cents. (Source: Greenpeace)
† With solar power in the sunny US Southwest already at “grid
parity” – meaning it costs the same as or less than electricity
from conventional sources – Mother Jones noted that even
Wall Street has begun to take notice. Venture capital funding
for solar energy rose from $127 million in the rst quarter
of 2013 to $251 million in the rst quarter of 2014.
Of related interest . . .
† Installed photovoltaic capacity worldwide ranges from below
ve gigawatts (GW) in the United Kingdom, to 12GW in the
US, to 35GW-plus in Germany, the global leader. (Source:
International Energy Agency [IEA])
The US economy
On the cusp of the New Year, encouraging
indications are almost everywhere –
and in ation is still a non-starter
Reports late in the old year furnished evidence of a consistent,
predictable, steady economy, with strong growth in the number
of people working. Housing sales were rising, applications
for unemployment bene ts declining, manufacturing in the
mid-Atlantic states gaining strength – and an index designed to
forecast growth moved higher.
On 20th November, the National Association of Realtors said
sales of used homes rose 1.5 per cent to a seasonally adjusted
annual rate of 5.26 million in October – up from a revised pace of
5.18 million in September. October was the rst month in 2014
when sales registered an increase compared with the year
before, for a 2.5 per cent gain over October 2013.
Median home prices nationwide in October rose 5.5 per cent
over the previous 12 months to $208,300.
The Labor Department said that the number of people applying
for unemployment bene ts declined slightly in the previous
week of 10th November, suggesting that job gains should remain
solid. Weekly applications for jobless aid fell 2,000 to a seasonally
adjusted 291,000. The four-week average, a less volatile measure,
rose 1,750 to 287,500.
Also, the Federal Reserve Bank of Philadelphia said its index of
regional factory activity jumped to 40.8 in November from 20.7
in October, reaching its highest level since December 1993.
The report reinforced other indications that manufacturing is
expanding modestly and helping to lift economic growth.
A measure of new orders soared and more businesses in the
Philadelphia area said they were adding jobs.
Finally, the Conference Board, a non-pro t global research
group with a membership of 1,200 reporting corporations and
organisations, said that its index of leading economic indicators
increased 0.9 per cent in October after a 0.7 per cent rise in
September. The October reading was the best monthly showing
since a 1.2 per cent jump in July.
“The upward trend in the Leading Economic Index points to
continued economic growth into early 2015,” said Conference
Board economist Ken Goldstein.
† Last but not least is an encouraging Labor Department
report that core in ation, which excludes the volatile energy
and food sectors, rose only 0.2 per cent in October. For the
previous 12 months, overall in ation was up 1.7 per cent
while core in ation was up a similarly modest 1.8 per cent.
Both gains are well below the Federal Reserve’s two per
cent in ation target, giving the central bank leeway to keep
interest rates low to bolster the economy without any worries
about in ation.
† As noted by Mr Goldstein and others, the bugbears of slow
business investment and lacklustre income growth continue
to shadow the US economy. But they would appear to be the
sole dark spots in an otherwise brightening picture.
Immigration reform
Spouses of high-tech immigrant
visa holders will now be
permitted to work in the US
Although it does not increase the number of high-tech
immigration visas, an executive order issued by President Barack
Obama on 20th November will allow spouses of the visa holders
to seek and accept jobs of their own, a right denied them under
current policy.
The H-1B visa programme admits an estimated 140,000 workers
in ‘speciality occupations’ annually. Their spouses come to the
US under the separate H-4 visa programme.
As noted by Sean Higgins of the Washington Examiner,
immigration policy experts say that a majority of the spouses
themselves hold high-tech degrees (many met and married
while in school) and will likely seek work in industry under the
liberalised rules.
Thus, wrote Mr Higgins (20 th November), “While the policy
change will not increase the total number of high-tech visas
allowed, which is set by Congress, it will likely signi cantly
expand the number of those workers allowed into the country.
The spouses will not count as using H-1B visas.”
Another change to the regulations will free a high-tech visa
holder from ties to a speci c employer, a situation that according
to critics of current policy makes an ‘indentured servant’ of the
worker. The newly portable visa will enable the holder to move
from job to job.
Even so, Mr Higgins thinks business groups are likely to be
disappointed by the presidential order. “[It has] a lot of small
changes that business was asking for,” said one of his sources.
“But apparently nothing huge.”
Dorothy Fabian – USA Editor