6 ms·

Sounds like it’s time to cancel the H1B visa.

bdcravens 3y ago
How is that related to the article? In theory, no matter what the job market, companies will have the need for talent unavailable locally (of course the H1B is abused, but that's the stated purpose) If you're implying that eliminating H1Bs would shoot wages upward, I don't believe that would happen.
- Dig1t 3y ago
  It would, immigration in all forms directly affects labor supply, which affects wages. There’s a reason that basically every single CEO is pro-immigration.
- lumost 3y ago
  In Tech, H1B is commonly used for relatively generic SWE positions. It could be argued that there is a shortage - or it could be argued that employers prefer Visa holders due to additional control they get from employing a Visa holder. If the local workforce doesn't feel like they can get ahead... they will grow disgruntled. Targeting Visa and other immigration programs is something that they perceive they can control more so than changing employer attitudes. The same pattern can be observed in Canada. If I have to spend ~3500 per month to own a home within an hour of downtown. Then I need a take-home pay of 168k/year which is roughly 268k/year pre-tax. The number of positions which actually pay 268k/year is already small.
  - jannyfer 3y ago
    $3500/month rent is $42k/yr. You need $124k/yr of after-tax money for food, transportation, and everything else?!
    - lumost 3y ago
      This was for owning, rental rates are more difficult to assess due to the likelihood of collective living. General rule is that mortgage shouldn't exceed 30% post-tax, hence multiplying by 4 to allow a 5% buffer and a stable financial situation. In a city where a condo costs 3500/month.. It's quite likely that you'll need 124k for everything else. A basic "fast" lunch in downtown Boston runs ~20 dollars these days (5000/yr), parking alone can burn ~10k/yr. If you opt to avoid cars for public transit then you need to add 2-4k to the mortgage payment. As everyone else is facing the same housing math, prices rise. There is some lag to pricing as individuals avoid paying market rate for housing by buying 10+ years ago or locking in lower interest rates.
      - gamblor956 3y ago
        It's quite likely that you'll need 124k for everything else. $124k is $12.4k/month in non-rent/mortgage costs. The costs you describe come nowhere close to $124k. You've described maybe $10-14k in other costs, a large portion of which are discretionary luxuries. $100/week in eating out for lunch? That's a luxury. The alternative is to do what most people do: bring a lunch from home. Sandwiches and pasta are cheap: $100 of pasta will feed a person for months. Somehow, non-techies manage to make things work on way less than $168k/year.
      - jannyfer 3y ago
        > General rule is that mortgage shouldn't exceed 30% post-tax This is where you went wrong. 30% rule is pre-tax (gross income): https://www.chase.com/personal/banking/education/budgeting-saving/how-much-income-should-go-to-rent https://www.chase.com/personal/banking/education/budgeting-s... https://www.cnbc.com/2020/09/10/always-use-the-30-30-3-rule-before-buying-a-home-during-pandemic-says-finance-real-estate-expert.html https://www.cnbc.com/2020/09/10/always-use-the-30-30-3-rule-...

How is that related to the article? In theory, no matter what the job market, companies will have the need for talent unavailable locally (of course the H1B is abused, but that's the stated purpose) If you're implying that eliminating H1Bs would shoot wages upward, I don't believe that would happen.

Dig1t 3y ago
It would, immigration in all forms directly affects labor supply, which affects wages. There’s a reason that basically every single CEO is pro-immigration.
lumost 3y ago
In Tech, H1B is commonly used for relatively generic SWE positions. It could be argued that there is a shortage - or it could be argued that employers prefer Visa holders due to additional control they get from employing a Visa holder. If the local workforce doesn't feel like they can get ahead... they will grow disgruntled. Targeting Visa and other immigration programs is something that they perceive they can control more so than changing employer attitudes. The same pattern can be observed in Canada. If I have to spend ~3500 per month to own a home within an hour of downtown. Then I need a take-home pay of 168k/year which is roughly 268k/year pre-tax. The number of positions which actually pay 268k/year is already small.
- jannyfer 3y ago
  $3500/month rent is $42k/yr. You need $124k/yr of after-tax money for food, transportation, and everything else?!
  - lumost 3y ago
    This was for owning, rental rates are more difficult to assess due to the likelihood of collective living. General rule is that mortgage shouldn't exceed 30% post-tax, hence multiplying by 4 to allow a 5% buffer and a stable financial situation. In a city where a condo costs 3500/month.. It's quite likely that you'll need 124k for everything else. A basic "fast" lunch in downtown Boston runs ~20 dollars these days (5000/yr), parking alone can burn ~10k/yr. If you opt to avoid cars for public transit then you need to add 2-4k to the mortgage payment. As everyone else is facing the same housing math, prices rise. There is some lag to pricing as individuals avoid paying market rate for housing by buying 10+ years ago or locking in lower interest rates.
    - gamblor956 3y ago
      It's quite likely that you'll need 124k for everything else. $124k is $12.4k/month in non-rent/mortgage costs. The costs you describe come nowhere close to $124k. You've described maybe $10-14k in other costs, a large portion of which are discretionary luxuries. $100/week in eating out for lunch? That's a luxury. The alternative is to do what most people do: bring a lunch from home. Sandwiches and pasta are cheap: $100 of pasta will feed a person for months. Somehow, non-techies manage to make things work on way less than $168k/year.
    - jannyfer 3y ago
      > General rule is that mortgage shouldn't exceed 30% post-tax This is where you went wrong. 30% rule is pre-tax (gross income): https://www.chase.com/personal/banking/education/budgeting-saving/how-much-income-should-go-to-rent https://www.chase.com/personal/banking/education/budgeting-s... https://www.cnbc.com/2020/09/10/always-use-the-30-30-3-rule-before-buying-a-home-during-pandemic-says-finance-real-estate-expert.html https://www.cnbc.com/2020/09/10/always-use-the-30-30-3-rule-...