H1-B Hiring Under Fire

I understand that this bill is well-intentioned, with the idea of increasing the number of domestic workers filling technical jobs. However, it seems that - like most government interventions - the main end result is higher prices, more harassment and less efficiency.

It is axiomatic that government never makes *anything* more efficient, and the labor market is certainly a prime example of that.

There are already many barriers for H-1B visa-holders to overcome to get here and be successful: significant physical relocation, language and culture barriers, and of course the H-1B process itself. If after all that, they're still able to work for such a significant discount to the US-born applicants and they do as good a job, then perhaps the US workers need to accept a smaller number.

It's the force of the marketplace, and whether it's in the labor market or in the finished product market, placing inefficiencies on the markets always come around and result in a negative impact for the company doing the restricting.

Let's play this to the logical conclusion: the bill passes, and limitations are placed on hiring H-1B applicants. Fewer qualified H-1B workers are available here, so more are available off-shore. This glut of supply of talent in India and elsewhere probably creates a decrease in the cost to run off-shore operations in the native countries, which makes them that much more an option that hiring an internal staff or domestic outsourcing.

Also, if the US companies have to now pay more despite not getting any better talent (other than being born in the right place), the company's costs go up. Throw in the cost of complying to and documenting this "good faith" effort and we've got still higher costs at the corporation.

So, either their product prices go up, or the speed, quality and quantity of their products decreases. Any way you slice it, the product is a worse value and may lose in the global marketplace to 100% foreign-grown products and services . . . maybe even to the companies in India (or wherever) enjoying the cheaper labor they've got as a result of fewer of their citizens emmigrating to the US. Hey, guess what happens when the US company's product becomes less attractive and loses customers? People get let go . . . so the American workers are back in the unemployment line.

Plus, on top of all that, you have 200 more employees (at least!!) at the DOL, which is paid-for by the taxpayers. So, the end net-effect of all this will be less globally-competitive US companies, greater taxpayer expense, and a questionably-positive benefit to any US-born workers. Not looking that great, guys!