There's nothing wrong with tapping in on a cheaper labor, and that has nothing to do with "business model being broken". Ambitious ideas need a lot of money, you take investment, depending on your finances, you contract some work abroad. A lot of startups made it work, eventually they brought people on H1B, but don't mix up their initial stage with later stage.

Business model doesn't have to work initially. Facebook didn't have one for a long time.

You’re talking as if laws were sent by god, we made laws to serve us, not the other way around. We should change them to be sensible.

Also, if all businesses were required to be profitable from day 1, you’d have none. You spend on R&D to build a product, then sell it, then make money.

You know nothing jon snow