More H-1Bs = More inexpensive foreigners in the U.S. = Fewer jobs for Americans
Less H-1Bs = Fewer inexpensive foreigners in the U.S. = More outsourcing by American companies to cheaper destinations = Fewer jobs for Americans
Ban on outsourcing = Another story!
The ban on outsourcing is about how in the long term, restrictions on free trade would result in the American economy becoming uncompetitive, and losing out to other global economies that are more aligned to free trade.
In any case, whichever way you look at these equations, the need for higher profits wins. If there is a choice between two equally skilled persons, and one costs less than the other, which one is any business manager likely to choose?
Then for America, a country founded on the principles of capitalism, the recurring debate over visas for skilled workers should be a non issue.
Yet, it’s not. While economists and academicians have written reams on the macro benefit of free trade on the future of the American economy, and the need for Americans to re-skill themselves to do higher-value work, politicians and politically aligned groups have continually fallen in the “other” camp.
Most recently they have raised the placard of “misuse,” charging tech companies of misusing the H-1B and L-1 visas issued to them, by bringing in cheap foreign workers into the country, and thereby taking away job opportunities for Americans. In the past they have campaigned for bringing down the cap on H-1B visas.
And, it’s no coincidence that these outcries have come up close to election time. Why didn’t we hear the protectionist voices outside of the run up to the 2004 Presidential elections, the 2006 mid-term elections, and now just before the 2008 Presidential elections?
In our Cover Story this month, we track the incidents of the last few months. Particularly note that none of the companies accused of visa misuse that we contacted for the story commented on the issue.
