That's not the real issue. The real issue is that tech workers are not the only one's coming here on H1B, and those professions don't pay nearly what an SDE gets paid.
The premise of my post was a change to an auction-style H1B program.
Let's assume there is a $FooCorp in Alabama looking for a SysAdmin but not having much luck. They'd like to spend $70k and enter the H1B lottery under our current system. Maybe they win, maybe they lose but can hire an H1B for $80k from $OutsourcingFirm. Under an auction system, let's examine what happens instead.
$Hooli (and other SV companies) are offering $135k for SDEs. Because $135k > $70k no H1Bs can be imported as SysAdmins for $70k. This raises the cost of SysAdmin work across the country for employers. The new baseline is now somewhere above $70k which is the price it takes to attract citizens (or otherwise eligible residents) to $FooCorp.
Under an auction system, $FooCorp still needs a SysAdmin and they have 3 options:
(1) do without a SysAdmin
(2) pay more than $70K to attract an already eligible to work SysAdmin to Alabama
(3) pay more for a SysAdmin than SV pays SDEs in order to hire an H1B
Let's look at those options. If they need a SysAdmin, the first option isn't really feasible. If the role is optional, this might be a situation where they decide to do without. That means there are two options left, and the rational decision depends on what the true market value of a SysAdmin currently is. If $FooCorp can pay a citizen $100k to move to Alabama, there isn't a skills shortage. If $FooCorp can't find anyone to move to Alabama to be a SysAdmin for less than $135k, there might be a legitimate skills shortage and then the H1B program is attractive again.
It's worth noting that if $FooCorp can't find a SysAdmin for less than a SDE to move to Alabama, the true value of a SysAdmin is at least $135k (in this example). Under the current system, SysAdmins are being short-changed, both H1Bs and other eligible SysAdmins in our workforce.
There is no such thing as a skills shortage. There are only greedy employers looking to abuse a system to underpay all workers, whether they are H1Bs or otherwise authorized to work. Anyone who tells you there is a skills shortage is making money off telling you that. Don't be a sucker.
