Yet there is no let up in diluting software engineering labor pool with thousands of H1Bs amidst the already distressed labor market from American job seeker perspective.
If H1Bs were so destructive to the software industry, why would the software industry, which has the highest prevalence of H1Bs, be the industry with the highest growth in salaries for basically the past 2 decades?
Also, the idea that eliminating H1Bs will bring more jobs makes absolutely no sense.
If a company is asked to eliminate all their H1B positions, what do you think is more likely:
- they hire a completely new employee in the U.S. at a similar, or if the critics are right and H1B is suppressing salaries, higher salary, or
- they hire the exact same person but now with that person back in their home country and pay them a tiny fraction of what they were paying them in the U.S.?
There may be a handful of jobs where the employee needs to be in the U.S. where sure, a few more Americans will get jobs. But the overwhelming jobs will simply move abroad with the H1 employee, and along with that a whole bunch of dollars that were being spent within the U.S. and was paying US taxes will move abroad and be spent abroad and pay taxes abroad.
Is DeepMind an American company? It's owned by Google, but it was founded in, and is still HQed in, the UK, but has offices worldwide. How much appetite do you recon Canada, France, Germany, and the UK have for America's trillion-dollar-club at this point?
Now sure, you could demand any corporations selling in the US, even if not based there, hand over payroll etc. documents and then tax them at whatever the multiplier is to go from that country's salary to US salaries… if you don't mind that means some countries are banned by existing privacy laws from doing business with you, or that even this is easily gamed, or that American exceptionalism is increasingly overstaying its welcome.
I think that the internet is incompatible with late 20th century models of national sovereignty. Globalisation itself isn't the problem, it's that services performed across an international border have a very messy relationship with legal obligations, everything from surveillance obligations[0] to minimum wage laws. This will get worse when robots can be tele-operated from a different nation, blurring the division between service and non-service (primary, raw materials; secondary, manufacturing) labour.
I don't think we here in Europe would mind so much, if Big Tech obeyed local laws (even when I disapprove of the law[0], I know I can't pick and choose which laws I follow, every jurisdiction's laws are a package deal). But Big Tech seems to treat European fines for non-compliance as if they were taxes, even though a tax on an import is called a tariff and the US is fine with those.
[0] https://en.wikipedia.org/wiki/Investigatory_Powers_Act_2016, one of two reasons I left the UK
but also https://www.theverge.com/news/608145/apple-uk-icloud-encrypt...
and note that Apple disclosing they've received such an order is itself an offence.
The EU is fine with tariffs as well though. It’s not a US only activity. However, the US has a history of tariffs as income tax wasn’t even in existence until early 20th century. I’m interested to see what impacts tariffs are going to play as it does seem a reasonable tool for sovereign nations to utilize. Otherwise, how else do they prevent the hollowing out of their working class in countries that do not provide the cheapest labor? Libertarian types will simply say pick up your bootstraps and compete, but that’s not realistic against labor that is a fraction of their cost. Protectionist measures may be the only logical response for the working class to be protected.
Indeed, I don't wish to imply otherwise, I'm just saying it's a bit hypocritical to complain about something being taxed when also implementing a tax of the kind being complained about — even if the thing being complained about is actually a fine rather than a tax, complaining about it as if it were a tax makes it hypocritical. (Also, it's not like the US doesn't fine businesses for not following laws).
I, too, have no idea how this will play out. Even just from what you say, and ignoring the potential bull-in-the-China-shop that would be the economic impact of AI performing useful cognitive labour at below-subsistence-farming wages.
Maybe because that’s just not true? Salaries have generally been stagnant over the last 20 years in real terms for most in the industry.
Most developers do not work at FAANG positions, and even those positions are only found in the extremely high cost of living areas like Silicon Valley.
Companies are always free to hire people from wherever they want. However, it could be foreseeable that “American” companies that are largely overseas, maybe at a disadvantage when it comes to taxes or other benefits conferred by the US government. Such companies may find that their products are subject to tariffs when trying to sell those products back in the United States or other active measures to prevent offshore positions. There is a risk as section 147 changes already has shown.