H-1B bill pulled from House committee vote amid complaints

Group 1: One economy consists of the some of the largest most richest multinational entities the world has ever seen.

Group 2: The other consists of small business like every other country.

Every company in Group 1 was once in Group 2, they move from Group 2 to Group 1 once they have achieved some benefit from "regulatory capture" to entrench themselves.

Economic prosperity and innovation comes from Group 2 increasing in size. Group 2 normally plays by the rules of market ( they are part of the economical food chain )

Group 1 is OUT of the food chain.

Why did I bring this up ?

Because this is critical in understanding the role of immigrants and capital.

If a set price bar is created for H-1B then group 2 business will be unable to compete on price, most group 2 business operate using thin margins. Size of Group 2 will increase in foreign countries, as Group 2 business are easier to start outside.

Group 1 on the other hand are responsible for the abuse of the H-1B in the first place ! but setting a lower bar will completely not effect them. In fact now their entrenched position is more entrenched ! since small business will be unable to hire foreign workers that they need. Group 1 market share increases allowing them to better control price.

All the extra money that group 1 receives, they are not stupid to start business in low growth high cost developed economy. Due to their global reach, all that money gets invested in building offices outside - their main enemy is govt. - it is in their best interest to figure out how to play one govt against another.

Group 2 on the other hand, any cost saving that they get through cheaper labour, normally gets reinvested in the local economy. They are normally not the ones who are interested or have the managerial skills to co-ordinate business at an international level.

Anything that congress does, that does not take into account this dynamic between group 1 and 2 is doomed to fail.