I agree that this keeps wages down and that imposing restrictions would increase wages in the short term. But would it also drive companies to further cutback

I agree that this keeps wages down and that imposing restrictions would increase wages in the short term. But would it also drive companies to further cutback or outsource their workers? Which would then decrease local demand creating a surplus of labor and reduced wages. Half the developers on my team are in India and baring minor VOIP issues, it's rarely a problem and often a benefit (e.g. 24hr development) If the US ended up revoking H1B visa and sent a bunch of developers back to their home countries, would that actually create jobs? feel like it would just result in more long distance telecommuting.