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How middlemen are gaming the H-1B program

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Re: How middlemen are gaming the H-1B program

#11

Post by freetinker »

Dig1t wrote: post #8
downrightmike wrote: post #3

"The outsize role of these (outsourcing/staffing) firms has distorted the H-1B program, which Congress conceived as a way to help American businesses get access to the world’s top talent. Instead, outsourcing and staffing companies bring in applicants with less-remarkable resumes, paying them lower wages and heightening the risk of undercutting American labor. The result is a system that fails US workers, shortchange…

When congress created these laws they just fundamentally misunderstood the astronomical demand there was to enter the country. There is so much financial incentive to bring people in, for laborers, for companies looking to push wages down, and for politicians who stand to gain from additional votes, that any route to do so is bound to be abused any way it possibly can be.

Indeed. Ignore capitalistic forces at your own peril.

Re: How middlemen are gaming the H-1B program

#12

Post by readthenotes1 »

bubblethink wrote: post #7

How did the middlemen get so much power in the US economy ? So much of the economy is just middlemen doing bullshit work and seeking rent. Staffing firms, real estate agents, car dealerships, attorneys, healthcare, etc. I don't think other countries have such a big problem with middlemen inserting themselves everywhere and seeking rent. Is there something unique about the US ?

You have experience in other countries, or is this a grass must be greener on the other side of the fence type comment?

Re: How middlemen are gaming the H-1B program

#13

Post by xwolfi »

bubblethink wrote: post #7

How did the middlemen get so much power in the US economy ? So much of the economy is just middlemen doing bullshit work and seeking rent. Staffing firms, real estate agents, car dealerships, attorneys, healthcare, etc. I don't think other countries have such a big problem with middlemen inserting themselves everywhere and seeking rent. Is there something unique about the US ?

Middlemen are people who spent time specialising in a market and you pay them as guides. You never have to go through them, but you'll get your ass raped.

There s nothing wrong about them, they work hard and are not rent seekers (a commission on successful deal is the exact opposite of a rent).

Every countries has them (Im French, live in Hong Kong) and what you bemoaned is mundane in my experience.

Re: How middlemen are gaming the H-1B program

#14

Post by vsskanth »

Staffing companies are extremely profitable and mostly operate on the edge of the law, exploiting visa workers for maximum profit. Any attempt by USCIS to regulate staffing agencies use of H1B has been fought tooth and nail by armies of lawyers.

With the fall of Chevron, I don't think there is a way out of this without legislative changes.

The other side of the coin is the extremely arbitrary and capricious nature of the US employment based visa and immigration system. This naturally leads to middlemen who can navigate the system exploit it.

Re: How middlemen are gaming the H-1B program

#15

Post by bsder »

vsskanth wrote: post #14

Staffing companies are extremely profitable and mostly operate on the edge of the law, exploiting visa workers for maximum profit. Any attempt by USCIS to regulate staffing agencies use of H1B has been fought tooth and nail by armies of lawyers. With the fall of Chevron, I don't think there is a way out of this without legislative changes. The other side of the coin is the extremely arbitrary and capricious nature of…

The simplest solution is to automatically give an H1-B a green card in 12 months--24 at the longest. Force the sponsoring company to pay for and complete all of the required background and security checks. Make failure to complete or shitty completion of those checks criminal liability directly on the CEO.

This would immediately deprive these kinds of staffing companies of the economic incentive as they would have to pay for the legal costs of an H1-B every 12 months. This would remove the depressive impact that H1-Bs have on salaries as they would be free to compete in the market at large after 12 months.

And the H1-B pipeline would be free to bring in people that we actually want.

This could be done tomorrow. But it won't be.

Re: How middlemen are gaming the H-1B program

#16

Post by [deleted] »

bubblethink wrote: post #7

How did the middlemen get so much power in the US economy ? So much of the economy is just middlemen doing bullshit work and seeking rent. Staffing firms, real estate agents, car dealerships, attorneys, healthcare, etc. I don't think other countries have such a big problem with middlemen inserting themselves everywhere and seeking rent. Is there something unique about the US ?

[deleted]

Re: How middlemen are gaming the H-1B program

#19

Post by alvah »

xwolfi wrote: post #13
bubblethink wrote: post #7

How did the middlemen get so much power in the US economy ? So much of the economy is just middlemen doing bullshit work and seeking rent. Staffing firms, real estate agents, car dealerships, attorneys, healthcare, etc. I don't think other countries have such a big problem with middlemen inserting themselves everywhere and seeking rent. Is there something unique about the US ?

Middlemen are people who spent time specialising in a market and you pay them as guides. You never have to go through them, but you'll get your ass raped. There s nothing wrong about them, they work hard and are not rent seekers (a commission on successful deal is the exact opposite of a rent). Every countries has them (Im French, live in Hong Kong) and what you bemoaned is mundane in my experience.

"a commission on successful deal is the exact opposite of a rent"?

When the real estate lobby makes the whole industry a de facto closed shop, the real estate agencies themselves are full of middlemen picking each other's pockets, and the commission rate and total amount are far in excess of what you'd expect in a free market, and completely unrelated to any effort or expense on behalf of the agent? Sure, it's the exact opposite of rent seeking /sarc

Re: How middlemen are gaming the H-1B program

#20

Post by rawgabbit »

bsder wrote: post #15
vsskanth wrote: post #14

Staffing companies are extremely profitable and mostly operate on the edge of the law, exploiting visa workers for maximum profit. Any attempt by USCIS to regulate staffing agencies use of H1B has been fought tooth and nail by armies of lawyers. With the fall of Chevron, I don't think there is a way out of this without legislative changes. The other side of the coin is the extremely arbitrary and capricious nature of…

The simplest solution is to automatically give an H1-B a green card in 12 months--24 at the longest . Force the sponsoring company to pay for and complete all of the required background and security checks. Make failure to complete or shitty completion of those checks criminal liability directly on the CEO. This would immediately deprive these kinds of staffing companies of the economic incentive as they would have t…

Or we could simply end the H1-B lottery scam.

And go with the naked truth of what it is, patronage. Let each Senator/Representative be responsible for giving out a certain number of visas each year and let them auction it off to the highest bidder.

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