- Wages wind up going backwards.
- Wages fail to keep up with inflation meaning lower discretionary expenditure flowing into the economy.
- You wind increasing involuntary unemployment.
- With rises in involuntary unemployment you wind up increasing crime, from petty theft through to more major crime.
- With lower returns to economy on an individual basis you economically have less to invest in things like health, education, infrastructure, creation of export businesses on a per individual basis, despite growing GDP. You've created a hole but made it look like growth.
You don't need to go full domestic industry protectionism to avert the above, but you absolutely should not be firing an existing skilled domestic workforce with the explicit intent to replace them with skilled immigration if you want to perform better as an economy.
Because individual businesses can and will try to exploit the issue, this is why it should be regulated. To fail to do so hurts the economy at large when you are not filling a genuine skills shortage.
From my experience, the best H1-Bs go to the FAANGs (or whatever we're calling them these days). The middle of the pack go to consulting companies like Accenture or Wipro. And the subpar ones are C2C consultants for dodgy sweatshops, the kind who fill our inboxes with their 'hotlists' (if you know then you know). While most of them got a STEM Master's here in the US, if you look at the resumes of the weaker ones it's generally from some college you've literally never heard of- Northern North Dakota State or something. I would imagine that they're basically running a borderline diploma mill that's profiting off of foreign families who hope their child will get a Green Card
So no, your assertion that there is an implicit "there is no American we can hire to fill this" is false. We can't even consider that.
Also, what hiring manager is letting HR decide in what order their candidate pool is meritorious? HR can barely judge a local talent contest let alone someone's ability to undertake skilled work. If I say to my HR that a candidate needs to know Python with environmental experience I'm just as likely to have a candidate put forward who was a wildlife carer 20 years ago since they handled pythons as I am to find someone who can script and understands climate data. They will probably also give me someone who is good with Java, since it's all just computer programming.
Now, was I misinformec by an HR person during my time as a hiring manager? Maybe. But guess what, I didn't control their pipeline, and I had work to make sure got done. I'll definitely be adding HR people to my list of groups to talk to when interviewing companies interested in hiring for a hiring manager position though, because the sheer amount of hell that experience came with was beyond unreasonable.
> The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for an employer to discriminate with respect to hiring, firing, or recruitment or referral for a fee, based upon an individual's citizenship or immigration status. The law prohibits employers from hiring only U.S. citizens or lawful permanent residents unless required to do so by law, regulation or government contract
H1-Bs would legally require a visa transfer to switch employers, and the company can simply choose to not sponsor or transfer that visa. Thus, the worker is not eligible to work for them. Here are 3 immigration attorneys explaining this in another way https://www.avvo.com/legal-answers/can-a-company-refuse-to-c...
Reference: https://www.eeoc.gov/laws/guidance/fact-sheet-immigrants-emp...
Yet they keep getting contracts and the IT outsourcing company keep on making record profits.
The problem is, Indians can’t create an America. What they create is an India, and they will, inevitably, in America also. And that’s a shame.
> If anything, we should change the law to encourage much more high-skill immigration.
I don't think any reasonable person would argue argue against importing highly skilled laborers to increase GDP per capita, that is, to fill a genuine labor shortage that domestic supply cannot fill within a reasonable span of time.