Clearly they aren't. Say an engineer can make a company $1 million per year. They are only willing to pay $200k per year in total compensation, but they complain that they can't hire enough engineers. Obviously they aren't paying enough per engineer.
>At a certain point, don't you think it's better to share some of that opportunity with smart foreigners? How many Teslas does an American twenty-something need?
So it's not the multi-billion dollar companies that are being greedy, but the engineers making $150k a year?
Companies want to import foreign workers to depress wages so that they can save money, and your instinct is to blame the workers who don't want lower wages?
Engineers are not created from money. You might be able to fill your positions by paying more, but not all of the positions in the entire country. Not without immigration or higher graduation rates.
> Companies want to import foreign workers to depress wages so that they can save money, and your instinct is to blame the workers who don't want lower wages?
How do you justify that the location of birth should be the main determinant in whether an engineer earns $150k a year or $30k a year? That line of reasoning is a lot more disgusting to me than corporate profit-maximizing.
The shortage is a manufactured problem to justify an attempt to depress wages.
>How do you justify that the location of birth should be the main determinant in whether an engineer earns $150k a year or $30k a year?
If we take that to it's logical extreme. No one makes $150k a year. We allow an unlimited number of software engineers in until the average salary drops down to a level where it's not worth it to immigrate here. Maybe that's worth it to you, but if global income equality and globally open borders are your goal, argue for that.
Stop with this false argument about an engineering shortage that doesn't exist.
I think it is more likely that the marginal value added by an engineer to a company is much less than you think it is.
If Google currently earns an average of ~$2m per engineer that does not imply that they will earn an additional $2m upon hiring another engineer. In fact I'm confident they could fire at least 500 engineers tomorrow without negatively impacting their profit at all.
That makes no sense. If they can lose a significant chunk of their engineering team "without negatively impacting their profit at all" then why did they hire them in the first place.
If your assertion is true, they must have significantly overestimated their staffing needs. If they did, it's likely everyone did, so the engineering shortage crisis doesn't really exist after all.
Everything I've seen points to a real shortage and desperation on the part of the employers: interns making six figures with free Manhattan penthouses, nonstop recruiter spam, 22-year-olds negotiating stock packages on their 8 fulltime offers before they finish school, fresh grads buying Teslas with signing bonuses before their first day of work, countless job listings that never ever go away, $10k+ referral bonuses, websites where employers apply to you...
There's no more onus on me to prove a higher marginal value than there is on you to prove a lower one. You've attempted to shift the burden of proof by arbitrarily deciding that your assumption is the correct one.
I will say that most of the people I've read trying to determine the marginal value of software engineers, think that it's a good deal higher than what you seem to think it is. When you consider that there are outliers who will make or save companies tens of millions and not very many who are going to have very large negative impacts, the average is going to trend pretty high.
>Everything I've seen points to a real shortage and desperation on the part of the employers: interns making six figures with free Manhattan penthouses, nonstop recruiter spam, 22-year-olds negotiating stock packages on their 8 fulltime offers before they finish school, fresh grads buying Teslas with signing bonuses before their first day of work, countless job listings that never ever go away, $10k+ referral bonuses, websites where employers apply to you...
None of that is at all even remotely normal. The vast majority of software engineers don't experience anything like that. None of the people you're talking about are close to average. Average programmers don't pass Google style interviews. I went to a fairly average state school, and I've done a lot of tutoring and interview prep. I'd be shocked if 1% of the students I graduated with could pass a Google interview.
It's hardly shocking that the top 1% of engineers are making large salaries. Top law firms start associates out at $200k a year, do you think there's a shortage of lawyers?
If there really was a shortage, Google and other companies would relax their interview processes, and invest more in training. If anything, the real problem is that everyone thinks they need to hire the top 1%, but they don't want to pay for it.
$150k in silicon valley is equivalent to about $90k a year where I live, so I'm not interested in moving. If someone there offered me $300k, I'd go in a heartbeat.
The employers don't consider someone who can't pass an AmaGoogTwitBook interview (with some practice, of course) to be a 'qualified engineer', and there is indeed a shortage of such people.
Let's say I run a cleaning business, and I decide that I only want to hire janitors who can run a 4 minute mile. I think that they are the best people for the job, and no-one else will do.
Let's also say that I only want to pay them $50k a year. Some time goes buy and I'm having a really hard time finding people. Now I could raise what I'm offering to $100k a year, and find plenty of candidates who would move here from other states, change careers, move from management back to working as a janitor, come out of early retirement etc...
Or I could relax my requirements--take people who show the potential to run a 4 minute mile and train them.
Or I could lobby the government to increase the visa cap so I can import qualified people who are willing to work for $50k.
This doesn't sound so bad when you think about it. I wasn't willing to offer more than $50k a year, so wages weren't increasing anyway.
However, if I didn't have the option of raising the visa cap, and I really believed that only janitors who meet my qualifications would work, I would have no choice but to offer a higher salary.
Therefore, importing more workings depresses wages for qualified janitors.
Now you might be thinking $50k is plenty for qualified janitors. They can live with less. But here's the important part. You didn't increase the visa cap for only qualified janitors.
You increased the visa cap for all janitors, who are making at least the prevailing wage. And it's based on a lottery. The number of extra visa spots aren't proportional to how much a company is paying. Every company who is willing to pay the candidate at least the prevailing wage gets the same shot at these visa slots. Since, most companies don't have sub 4 minute mile requirements for janitors, the prevailing wage is much lower than $50k a year.
Now the market is flooded with janitors willing to work at average companies for $20k a year, and you've driven down wages for all janitors not just the top 1% of qualified janitors. Even though the shortage is only for the top 1%.
Average software developers aren't making $150k a year and buying Teslas, and they are the ones you're going to hurt with visa cap increases.
I'll agree that there is a shortage of top 1% programmers. There is a shortage of the top 1% in nearly every industry almost by definition. However, until you develop a system for only importing enough top 1% programmers to meet demand, you're going to hurt everyone who's not in the top 1%.
There are several systems for doing this. The easiest to implement probably to use an auction instead of a lottery (this comes with a set of its own problems though).
Generally speaking, immigrants (about 1.2 million annually to the US) are free and full participants in the labor market, free to pursue the degrees and skills they wish, in response to salary, working conditions, career longevity, personal interests, and so forth. They may wish to open a sandwich shop, sell real estate, or write software. Just like people who were born in the US.
It turns out that, like those born in the US, these immigrants don't go into engineering in numbers that high tech employers feel they should. Personally, I think this is a sign that perhaps high tech employers need to sweeten the pot a bit - if people (immigrants or otherwise) who are free to choose aren't choosing you, that's the market's answer. It's not them, it's you.
Employers have responded by lobbying for what I consider to be a wildly self-serving and coercive visa that gives them the power to bestow and revoke US residency and work rights under the notion that there is a "shortage" of engineers. This enables them to say - we'll let you in if you study computer science and agree to write code for us for the "market rate" salary that fails to attract those with the freedom to choose their careers in sufficient numbers. We won't let you in if you don't take our tech test, and if you try to quit your job and open up a sandwich shop, we'll have you deported. You know, free labor markets.
I'm opposed to a system that allows employers to bestow (and revoke!) US residency and work rights on non-citizens under the condition that they study what the employer says they should study, work on what the employer says they should work on, live where the employer says they should live, and so forth. I think this position is very consistent with pro-immigration attitudes and personal freedom.
There is not set number of "positions", the number depends on the number of developer willing to work for the wage offered. If you would consider an employer who is willing to pay $50 per month for a developer to have an open "position", then the number of positions would be an order of magnitude higher.
Well, they are. Compensation packages at the big tech companies are ridiculous. I know someone that got $100k signing bonus (cash, not stock) without a degree at 21 years old. He's not a genius either.
At a certain point, don't you think it's better to share some of that opportunity with smart foreigners? How many Teslas does an American twenty-something need?