Labor Arbitrage
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X @Nick Szabo
Nick Szabo· 2026-01-31 10:08
RT War for the West (@War4theWest)Amazon is moving American engineering jobs to India.Amazon gets 2% of its global revenue from India. This is pure labor arbitrage.We protect auto and many other industries- but apparently it’s fine if India siphon off the entire American IT industry with no limits.Chimp the eff out!!!!! ...
The Hidden Middlemen Gaming the US Work Visa Lottery
Bloomberg Originals· 2025-07-21 08:00
H1B Visa Program Overview - H1B visa is a path for foreign workers to work in the United States [1] - The H1B program was designed to attract skilled workers to fill high-skill jobs in the US where domestic talent is lacking [6] - The program is in dire need of reform [26] Challenges and Criticisms - The system is rife with opportunities for fraud and exploitation [4] - The lottery system does not make sense [4] - Some companies use the program as a massive labor arbitrage scheme to increase profits [5] - Staffing companies game the system by submitting the same person's name multiple times in the lottery [11][12] - Outsourcing companies bring in lower-salary workers, potentially undercutting American labor [13] - L1 visas are sometimes used inappropriately for non-managerial roles [19] Impact and Perspectives - Skilled immigrant workers bring money to the US government [3] - Immigrants make up a large portion of Silicon Valley's workforce [27] - Some economists estimate that millions more engineers and developers will be needed in the US [28] - The H1B visa is owned by the employer, giving them significant control over the employee [9][10] - Approximately 80% of H1B petitions are held by Indian workers [7] - In 2023, over 450,000 people registered for the lottery for only 85,000 slots [9]