Evidence from a US government lottery shows that restricting foreign low-skill workers shrinks businesses without creating jobs for Americans.
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Mmmm... It seems in the world of politics, esp. populist politics, more facts don't bring better policies. They are simply ignored, or accused of being lies pushed by the ennemies.
> "We have all the facts on this we need. We don't need any more facts. In the land of truth, my friend, the man with one fact is the king."
-- Linton Barwick, In The Loop (2009)
"Economist X says there's relation R between variables P and Q" Meanwhile another economist might have found a different result.. or not have published a non-effect. Or have found the effect to be non-existent given confounders.
The danger is when/if people selectively choose studies, that just so happens to repeat what their ideology would dictate.
So maybe evidence does help, but what detracts from its effectiveness is how it is presented. Like we see every day on various public forums including this one, arguments are made in a rather heated manner, which are probably not conducive to making the other side more receptive to ideas. I'm not sure if this might be the confounding in these previous studies.
LLMs have the advantage of infinite patience and RLHF'd dispassionate mannerisms and the presumption of no vested interests. But that also means your friend could be technically right.
Humans have a machinery reinforcing their world view. Contradicting observations and facts are usually ignored or interpreted such that it matches their already held opinions.
An AUS Utopia reference would probably be more fitting though.
But more often, the “fact” does not address the individual’s issues, and the individual may give a stupid counterargument (“…lie pushed by my enemies…”) but they have a legitimate one. In this case, I guarantee there are specific people who’ve been indisputably replaced by H1Bs, maybe clustered in specific reasons, and maybe specific fields. Telling these people “overall H1Bs create jobs” won’t convince them.
Like telling poor people “the economy is improving, inflation is only 0.x%”. Both may be true in general at the population level, but to the person you’re speaking to, they don’t matter; economic improvements can go to others while they suffer more.
I feel like this has been a big failing of one (left) side of politics in recent years. Quick to state 'facts' as arguments but those haven't landed as well as they have in the past (15 - 20+ years ago), for whatever reasons...
> "If you don't allow firms to hire immigrant workers, they just become smaller firms," Lewis said. "They are not replaced with US workers. Instead, the output of the firm shrinks, and there are fewer total workers."
This is incredibly important. Everyone who fears immigration is going to take their job should read this and realize that fear is not only false but inverted.
This is only because immigrants are willing to do jobs at wages and working conditions that locals do not accept. Employers in the Finnish berry industry were just jailed for human trafficking. Meanwhile the same companies have been loudly complaining that no Finn wants to work for them.
I would partially disagree with this assertion (immigrants are clearly very constrained in their job mobility, and their wages are correspondingly suppressed) but what TFA and other similar studies and history show, it's not like wages increase for native employees with lower immigration. Typically what happens is that there just aren't enough people to do the work, and so the work just doesn't get done, which is why businesses just don't grow.
Sometimes the economics just don't work out. Relevant berry-related example, California farmers often have had to let entire years' worth of strawberries rot in the field when they could not find enough farmhands to pick them. And they did try raising wages and perks: https://www.ucdavis.edu/food/news/california-farmers-have-ra...
But sometimes even with the right economics there just are not enough workers. TFA gels with my experience working in Tech in the US for almost 2 decades, conducting countless interviews for positions that I know paid very well, and just not finding enough qualified candidates regardless of visa status, which constantly put significant constraints on our roadmaps.
There are similar issues in agriculture, hospitality, and construction. Many jobs are seasonal and require you to live away from home. And because the outputs are supposed to be affordable, they don't pay enough to support you for the rest of the year. So you need an actual job, which is probably nicer and pays enough that you don't want the seasonal job anymore.
Unionization demonstrably leverages benefits out of corporations, so I'm inclined to think that immigration bans would have the same effect.
I don’t think limiting immigration like this is a good thing. But this also doesn’t mean that it isn’t hurting local people.
Big tech would have been super heavily invested in education if they weren’t getting an endless stream of high-performing well-educated immigrants
That's not how you write "cheap".
But remember, cotton was once also cheap because of the endless stream of immigrants, consequences are paid every day since.
Big Tech pays enough to hire whoever it wants, regardless of nationality.
The evidence is they continue to pay obscene wages to people to work in the most expensive parts of the country: Silicon Valley and SF, NYC, Seattle. Until very recently even new grads made close to $250k at FAANG (MAAMA? whatever it is) and peer companies.
Big Tech could easily hire in cheaper American cities, save a ton of money, hire only citizens, avoid the visa hassles of hiring foreigners. But they don't. Because they can't hire enough.
Having the people they want, in the places they want them working, really, really matters to them. Much more than saving a few bucks.
If it were restricted from hiring in America, Big Tech would have invested even more in global capability centers instead.
I can think of few things more threatening to big tech SWEs in Silicon Valley than their management becoming more comfortable with work done outside of the US.
At least in theory, many people perpetuating this myth are at least nominally convinced that it must be obviously true, because the zero-sum thinking is simpler than the reality.
Of course, the other problem is people going "my anecdote beats your study", because they personally know someone who blames immigration for losing their job, and a study of people in general still lets someone go "ah, but that's not always true".
Facts are much lesd helpful here because half of the perceived problem is emotional.
2. Not everything can be answered by gdp; there is a real issue of culture and values that could become eroded by huge influx of immigration causing societal strife.
So the trade is your country gets (sort of) richer overall and the elites get richer while the average person gets poorer.
If you're okay with that outcome, then yes no need to worry about the data!
I feel like the wording "low-skill" has become a technical term that doesn't mean what the word says and it makes people make assumptions they shouldn't with regards to these jobs. A lot of these so called low skill jobs require a highly specific job experience and/or productivity to simply keep pace and not drag down the rest of the team. We talk about Joel Spolsky and how a poor hire in a software development team can hurt morale but it simply isn't that big of a factor with us as it is in these so called low-skilled jobs but we aren't ready for that conversation.
Also about housing, who do you think builds all these additional housing units if we don't bring in the labor we need to build them?
Did the economists who ran this study miss this? Do they explain it?
The "investment in equipment, vehicles, and structures" seem to be referring to Capital-labor ratio, a metric in economics that is often attributed as a good indicator of company productivity. I wonder if firms would still prefer to invest in labor force in lieu of capital, given the greater revenue multiple achieved by capital investment.
While this study pertains to US labor force, it is also salient to the Japanese economy. Here in Japan, we have a shrinking working population. Firms have responded by importing labor from abroad and investing in capital (e.g. automation). For example, convenience stores would hire foreigners, but eventually reduce headcount when they install self-serviced checkout.
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