4 ms·
No one seems to be talking about the unintended consequence of this policy(or in this Administration's case a likely intended). It's the same thing with minimu
by wallawe 6y ago
No one seems to be talking about the unintended consequence of this policy(or in this Administration's case a likely intended).
It's the same thing with minimum wage - politicians feel good raising it and for those that remain employed it is a good thing. But it ends up in fewer job opportunities, causing further unemployment.
This looks like a great policy at face value but in the end, it's going to mean many fewer H1B's. This is a win-win for the Trump administration because it looks like they're doing the right thing and perhaps they are, but it's also keeping foreign workers out and providing Americans with more jobs, which is exactly what they want.
- spfzero 6y agoI think it is actually the intended policy. It would probably be the same under any administration. Abuse of the current system essentially incentivises consulting companies to compete with each other based on salary structure. The ones willing to lay existing workers off fast enough, and repeat often enough, have a steady supply of low-cost workers and can undercut their competition. Other companies are forced to copy in a race to the bottom. This is obviously hurtful to the laid-off workers and their families, and to the unemployment insurance system's balance sheet. So there are obvious, purely functional and apolitical reasons to re-adjust the incentives.
- sjg007 6y agoI think that raising the minimum wage results in more jobs not less.
- nsonha 6y agoBy what logic?
- belltaco 6y agoCanada has already been taking advantage of it even before this. https://www.npr.org/2020/01/27/799402801/canada-wins-u-s-loses-in-global-fight-for-high-tech-workers https://www.npr.org/2020/01/27/799402801/canada-wins-u-s-los... This policy will encourage outright outsourcing of jobs and remote hiring, especially coming now as companies just got more comfortable with employees working 100% remote because of covid. The side effect will be the US economy losing on taxes, economic activity and hiring activity caused by extra people with high paying jobs.