Economist warned that US companies will now switch to outsourcing instead of applying for H-1B program.
Economist Peter Schiff stoked a controversy on H-1B as he expressed his opinion that the hike in the visa fee would not stop tech companies from hiring foreigners. They will now hire foreigners for remote roles where they work outside of the US. If this happens, then the move does not really help Americans in preserving their jobs, but several social media users participated in the debate and opined that they are fine with the arrangement as long as migrants are not crowding the US. “One of the unintended consequences of Trump’s $100K fee on H-1B visas is that companies will outsource the work outside of the U.S. Remote workers won’t pay U.S. income taxes or spend their earnings in ways that benefit local landlords or other U.S. businesses and their workers,” Schiff posted on X. “I don’t think MAGA racists would have any problem with the jobs being outsourced to India. They don’t really care about the jobs they know they lack the skills to get. Their problem is they don’t want non-white immigrants,” one wrote. “We are fine with that. Let them stay remote in other countries. It is low level work most of the time.We prefer that they don’t come here and they don’t bring all of their H-4 visa family members also,” another wrote. “They could have before h1b, but they chose the pricier alternative of having them brought in. Most likely they’ll pay to keep the best ones, jettison the rest, and replace them with domestic workers,” a third user wrote. Many argued that offshoring is already an existing option for the companies and nothing stopped them from doing it. But still they chose to hire H-1Bs, bring in the foreign workers to the US and now that will become costlier.
Who will be hurt by $100,000 visa fee? Foreign countries or US economy?
Economists have already sounded a warning that if the number of immigrants drops because of the visa fee, US economy will be hit because H-1Bs spend and invest their salary in the US economy, which increases consumer demand and new jobs.
