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Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

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Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#371
People seem to have arguments about this based on

1) H1Bs depressing the prevailing wage (true if you believe in classical supply and demand)

2) overall economic utility; aka the economy does better/worse because of more H1Bs (I don't really care, but I guess someone might)

One thing which gets left out: H1Bs are more compliant employees, because their employers have them over a legal barrel. They have a much harder time leaving their employer than a citizen does, and they're a lot less likely to complain if they're abused. Turnover is hugely expensive to a software company; between that and the "costs" of having an employee with civil rights; well, not all employers are bad actors, but the temptation has to be there. I've certainly seen this at work in various places. It's pretty rotten. I mean, obviously many consider it a good trade, but it isn't exactly humane. Social costs like this are often left out of economic considerations. Who cares if your GDP goes up if we end up living in a dystopia as a result?

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#372
So logically I can agree with this however in practice at my startups this is just not true. Maybe it is because we never got that big before I went to do the next startup. I left at around 500 people in the last big one that IPO'd. (They are now over 3K - I was in the 1st 30). At my current startup we are ~50.

In both startups finding qualified engineers was the issue always. We did not care if where they came from, just that they could pass the interview process. We would interview 250 and maybe find one person. The goal was top 1%. I once asked the VP of Software if we could make it the top 5% and he said "can you tell me how to tell the difference between the top 1% the top 5% vs the rest? 1% is simple, anything below that you make mistakes."

For the 1st ~250ish people the difference between top 1% and the rest was huge and those top people made a world of difference to the success of the company.

I guess if you are a company with 1000s then the H1-B money game makes more sense. For a small startup, it is the talent that counts, not where they are from.

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#373

Every time the topic comes up, I wonder how many of the HN'ers who are cross at H-1B workers because they are depressing wages are intellectually consistent (and honest) enough to accept that this position is part and parcel of the same system of nationalist thought that leads to a wall to Mexico and steeply increased tariffs on chinese import; of "America First"? If you find yourself reconciling the idea of protecti…

The way I saw it, the "build a wall" campaign was more about mobilizing the frustration many felt about cultural changes and (perceived) social costs of illegal immigration and less about "they're taking our jobs" (though I'm not saying that argument was never made).

I think it was about people becoming upset at seeing their communities change for the worse, seeing signs and publications coming up in spanish, seeing mexican names in headlines about high-profile crime, seeing mexicans use EBT (welfare) cards at the grocery, hearing anecdotal stories about traffic incidents where "a mexican hit me and had no insurance..", and seeing mexican gangs come to their town.

I think a lot of those voters felt unheard and tired of the politically correct excuses used to defend them. And when someone finally stood up and said "I'm going to fight this [ one precursor that enabled these changes] ", they were immediately sold.

(I'm not going to put an "I'm not a racist" disclaimer here, you all should be mature enough to interpret whether or not I actually endorse those stances or whether I am explaining the motivations of others who do)

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#374
post #29

ex H1B here. Yes Trump is right.(though I do not like him personally, he is right in this matter) Most of the corporate America is exploiting H1B workers. I have worked in one of those firms and I have friends in many other firms. These are not Indian body shops, these are American companies. Everyone's topic of discussion when we hangout is how our H1B visas were being exploited and there is nothing we could do abou…

I'm so pleased to hear this. Please, fellow American citizen hopefuls and potential American citizens tired of Trump, come on over to Vancouver or Toronto, we desperately need you to raise the decade old stagnation of tech worker's salaries.

All is not well. You are going to have to deal with a significant salary cut around 40~50% not factoring in exchange rates. You also have to deal with small supply, high rent and cost of living. Prepare to commute for hours packed into the Skytrain like sardines in a can and bus. that is provided you don't get "renovicted" where landlord kicks you out to accommodate their relatives. You also have to deal with the isolation, cliquey and outwardly friendly but internally unfriendly and flaky citizens and sleepy eyed nature of No Fun City. You also have to deal with the fact that this is essentially a socialist country with socialist values which means lot of your taxes are going to people who have nothing to do with you or care for.

But hey, our ruling party thinks that's a small price to pay for Living In the Best Place on Earth™

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#375
former H1B & like any red blooded liberal, a Trump critic. However, on this particular matter I agree with the man. H1B is basically indentured servitude for employer. Its not just that you get paid less salary & bonuses it also reduces the bargaining ability when looking for potential opportunities as there is a lengthy transfer process that requires new employer to spend money.

Another practice that I have seen happen lately is (atleast common in employers like amazon etc) is that the younglings that get hired on H1B get a fairly low level position like engineer-I. they are then told that they are ineligible for green card processing until they get to next level. so in effect they are either working 60+ hours a week eyeing for that promotion or just burning their early years out of scarce 6 years limit. Honestly I dont know how is this legal. then there is matter of green card processing and prio date regression which is a whole another can of worms. IMHO at the salaries most young indians are coming to valley and given the rise of startup ecosystem in india, its almost not worth it especially if you look at cost of living here.

One more thing, often immigrant managers who themselves have hone through the process or are aware of intricacies are the worst exploiters as they know when employees are most vulnerable. Lastly, Dont even get me started on the 'consulting' micro body shops that do shit thats clearly illegal & would land the employee is fair bit of trouble if detected.

I definitely have to applaud trump for doing something about this even if under the guise of xenofobia. that said 130k limit will definitely have effect on the small body shops that are exploitative as hell.

there is one positive thing that happened in last few years which should be preserved, its the ability for dependent spouse (H4) visa to find employment. the wifes that come over here are fairly well educated & have carriers of there own. they often fall into isolation and get depressed due to lack of social circle & opportunities. I wish that still remains viable.

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#376

Ok what's the suprise here? If you give companies a chance to get cheaper "mostly the same" labor without a downside, or maybe with the upside they can't leave, they're going to take it. That's why I do believe globalization and the availability of huge amounts of cheap unregulated labor does hurt American jobs and industry. Its not xenophobia, its just common sense. I think if you look past any ideas of racism, xeno…

There have been many studies on this. Conservatives usually use the phrase "at best, the impact is nil" Liberals usually use the phrase "at worst, the impact is nil" Because the study shows there is negligible impact. Every laborer is also a spender. If the person saves, then every laborer is also an investor. If you believe in the mainstream economic theory, more jobs are produced for the ones that are "taken." You…

"The impact is nil" is impressive distillation of each side's philosophical endpoints :)

But, since we are talking about political ends, the words 'should be' probably belongs after 'impact'.

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#377

Earlier quoted context omitted.

There is a luxury yacht shortage. I say this because I want to run a luxury yacht business and I'm unable to buy a luxury yacht for the $10 that I have in my pocket. There is a Ferrari shortage because I want to start a "Uber With Ferraris" business, and I'm unable to buy a Ferrari with the $10 that I have in my pocket. There is a developer shortage because I want to start a software business and I am unable to buy a…

There can be shortages and you could also be able to hire people by pricing competitively. If there are 100 open positions and 80 available software engineers, if 1 of those positions is able to pay twice as much as the next highest, they will get that software engineer - it doesn't change the fact that there are 80 engineers to go around, and no matter how high they offer in pay 20 positions will go unfulfilled.

No. That just means that there are unviable businesses when software engineers are priced correctly.

If there are 10 businesses that each need to hire 10 engineers, but there are only 80 engineers, then the price of the engineers will be determined by which 8 businesses have a business model that can afford those 80 engineers. The other two businesses don't have a viable business model. They can't sell enough X to account for the cost of the engineers.

Likewise, if you have a business that depends on building an electric car, and you can't afford to buy lithium at market price and still make the car cheap enough, then that isn't because there is a shortage of lithium. Its because you don't have a viable business model based on the price of lithium.

In my example above, there is no shortage of Ferraris. There is only a shortage of people willing to sell their Ferrari at $10.

Or stock. There are 100 open positions for AAPL at $129, but only 80 offers at that price. Thats not a shortage of AAPL stock. That just means there's only 80 people willing to sell at that price. However, if you offer $160 for AAPL, suddenly you'll find a lot of sellers.

Only 80 engineers looking for work? Find someone that looks good on LinkedIn and offer them double their salary. Suddenly more than 80 engineers available.

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#378

Earlier quoted context omitted.

Your point was that the impact of using non-American labor was essentially nil in every study ever done. My point was that replacing a $25 / hr union factory worker who has healthcare and PTO, with a $2/hr factory worker in a "suicide sweatshop" is not nil. You said that in general, the replacement workers are just economic spenders too, and I provided a counter example (don't seem like these Chinese workers are like…

Okay, I now see what you are saying. So let's take apart those two points. You might be asking how could replacing a $25 worker with a $2 worker -- foreign, domestic, etc doesn't matter -- have no economic impact on jobs and wages? So one might argue the following: The company paying the $25 to the first worker, now has $23 in profit/savings. What happens to that money? They might reinvest it, they might pay it out a…

> Whatever they choose to do will end up creating more jobs and boosting wages in something else.

not if they stash it in an offshore tax-haven in the Cayman Islands.

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#379
post #142

Earlier quoted context omitted.

> What would a big country benefit from invading its weak neighbor in the 21st century? You're asking this as if it didn't already happen in Ukraine.

Isn't it true that Ukraine has never been an independent state except since the fall of the USSR? In its history? Except for 2 weeks after WWII? It has always been a fertile land, agrarian, impossible to defend due to no natural boundaries, its people of fiercely independent mind, yet, having been rolled over by Poles, Russians, Vikings, Norsman repeatedly and periodically throughout history? That would be the contex…

Most of your claims are false. And for argument sake if they were true, let's face it: Ukraine not only was independent since 1991, but it's territory integrity was guaranteed by Russia and USA.

Re: Trump Is Right: Silicon Valley Using H-1B Visas to Pay Low Wages to Immigrants

#380
post #298

Earlier quoted context omitted.

> Clinton accepted $675,000 from Goldman for 3 talks Okay, I get it, Clinton bad etc. But Trump has appointed tons of people from Goldman to his administration[1] and filed an executive order against financial industry regulations[2] - you know the regulations put in place after the last Wall Street crash, to prevent a similar crash? Can we stop pretending that Trump isn't bought off by Goldman now? [1] http://www.ny…

There is a big difference between selling out Americans to be replaced by foreigners whether H1-B as in Disney, Silicon Valley, and Wall Street or illegal immigrants replacing working class American jobs and depressing working class jobs and what Trump is doing now with Wall Street. If Trump were truly bought off by Goldman, he certainly would not be behind legislation that fixes the broken H1-B Visa system. Goldman,…

It's possible that he's trying to stick it to Silicon Valley as payback.

Technology salaries are probably a drop in the bucket cost-wise compared to the profits that will be made from deregulation of the industry. So while Goldman might have to pay a few million more in salaries, it's offset by the billions more in profits that they will rake in (over the short-term, until they destroy the economy again, that is).

Tech companies aren't going to see a similar measure to increase their profits to offset the labor costs increases.

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