Stephen Moore, Trump's pick for the Fed, just got a key immigration program dead wrong
The truth is that the H-1B program is a cynical sham. It’s been co-opted by outsourcing firms that use the visas to import workers, mostly from India, to replace Americans in middle-level information technology jobs. Those firms corral about half of all H-1B visas every year. The workers they bring in often live here barracks-style and are at the beck and call of supervisors who can revoke their residency at will. The workers are valued by the outsourcing firms’ clients because they’re cheap.
Big American employers whine that U.S. universities simply can’t turn out enough graduates in STEM fields (science, technology, engineering and math) to fill their needs. But that’s almost certainly a lie — big tech companies have laid off trained engineers by the carload, replacing them with foreign workers they can hire for less.
Moreover, as Hira observes, there are huge loopholes for the outsourcing firms. They’re exempt from the good-faith recruiting rule if the H-1B workers are to be paid more than $60,000 or they hold a master’s degree — from any university in the world. “All of these firms exempt themselves from the requirement by meeting one of the two conditions,” Hira told me by email. The truth is that most of the outsourcing firms’ workers don’t hold more than a bachelor’s degree, much less an advanced degree.