The H-1B Stalemate

No matter which side of the H-1B visa debate you're on, both sides agree: There's a problem with the system. The program, which allows 65,000 guest workers with a bachelor's degree or equivalent to work in specialty occupations in the United States, is at the center of a heated argument.

Some people, including Bill Gates, argue that the cap should be raised to allow 130,000 workers. Others, such as labor unions and college professors, think the cap should be lowered to provide more jobs for American citizens.

From Gates' perspective, the United States simply doesn't have enough skilled workers to fill the high-tech needs we have. Immigrants are needed to help fuel the IT industry.

Opponents of that view assert that the workers are here — they just can't compete against foreign workers who are willing to work for lower wages. Immigrants are causing economic problems in the United States.

Which side is right? Probably both. And probably neither. Although certainly some jobs filled by H-1B visa workers could have gone to equally skilled American workers, a deeper issue at hand is the level of education in the United States. India and China have higher populations and are more likely to produce technically skilled workers as a result of sheer numbers. But both countries also have an edge over the United States in education: They confer twice the number of science, engineering and math degrees per capita than the United States.

If the U.S. education system produced just another 130,000 highly-skilled workers each year — out of its 300 million people — there would be no need for H-1B visa workers at all, at least according to Gates' numbers.

Either way, technology-dependent companies are continually raising the bar and demanding excellent employees, regardless of where they come from. So it's a stalemate. Without the increased numbers of highly skilled workers that the United States needs, the high-tech industry could lose ground to foreign countries in the future — a potential disaster in the making. The critical question is: Should the United States move toward importing IT talent or producing it domestically?

The answer may be a little of both. Raise the number of H-1B imports. However, have a meaningful tax for the firms that utilize this H-1B process. Use this tax money to go directly to universities so that they can give scholarships to needy kids. Then train these students in technology and engineering. This could solve the short term problem and prepare us for overcoming the problem in the future.