Comment by john01dav | Hacker News Reader

Comment by john01dav | Hacker News Reader

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This model assumes that the number of positions is fixed at any given time, but that is not true. Instead, it will fluctuate based on what must be paid. So, to extend your example, without H1B or a similiar program or de-facto state that does the same thing, then we'd get roughly the 900 jobs that are willing to pay the most to be filled, while the rest are not worth the cost of employing someone in this hypothetical market. The result, then, is a higher wage for those 900 citizens.

This is not to say that such programs are bad. To consider that, we must ask questions like:

- Is citizens being able to make much more than non-citizens a desirable outcome? (it's electorally incentivized, since citizens can vote in the relevant elections but non-citizens can not but that is not the same as being desirable in a more broad sense) - How big is this effect? - How badly do we (meaning society at large) want these final 100 jobs done? - How will this affect competition with other countries? - What about outsourcing?

A labor shortage has a temporary effect of creating an upward pressure on the 900 jobs, but there’s a ceiling and the long term effects are complex. I may have to pay 900 jobs 1.5x to attract and retain the talent as a business, but that cost will be eaten by other functions where there’s a surplus. Or long term, the businesses will find ways to either automate or ship the jobs away.

Additionally there will be a loss in productivity for business and the 900 jobs will have more work on their plates, so in a way they could be underpaid for the job they do. This is just scratching the surface, but I assume there’d be a lot of second order effects.

> the businesses will find ways to either automate or ship the jobs away

Both are acceptable terms for me compared to importing cheap labor. If they automate, then at least it creates new high end jobs, and if they ship jobs away then they now have to deal with foreign cultures, foreign courts and legal system, etc that will hamper their business.

That’s because you’re automatically assigning “cheap labor” tag to all workers on visa. Which in itself is not accurate. But these same workers after following the above process become permanent residents and citizens. (Which implies these are the people companies want to retain and move them off a visa by sinking 10s of thousands of dollars) The reality is much more nuanced.

The business won't be hampered much by hiring in other countries because EOR companies have streamlined the process. And your username is very much on point.

>The business won't be hampered much by hiring in other countries because EOR companies have streamlined the process.

Then why do they need visas then?

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