“The temporary 60-day pause that President Donald Trump declared on legal immigration in mid-April after the coronavirus hit was not so temporary after all. Starting tomorrow, Trump will extend this pause until the end of 2020. But that’s not all. He is also expanding the scope of the ban to cover even more categories of immigrants.
Trump is justifying all this as an effort to save American workers from foreign competition. But if America’s past experience with restrictionist policies is any indication, the ban will backfire and end up hurting, not helping, American workers, its intended beneficiaries, while crimping America’s economic recovery.”
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“There are already significant obstacles built into labor and immigration law that make it far more time consuming and costly for businesses to hire foreign workers. So businesses already automatically prioritize American workers over foreign workers. As Sen. Lindsey Graham (R–S.C.) tweeted after Trump’s announcement: “Work visas for temporary and seasonal jobs covering industries like hospitality, forestry, and many economic sectors can only be issued AFTER American workers have had a chance to fill the position.”
The fact of the matter is that American employers only hire immigrants to fill niches at the top and the bottom end of the labor spectrum where qualified Americans aren’t available or willing to take jobs. Restrictionists like White House aide Stephen Miller, the real architect of Trump’s immigration pause, claim that starving businesses of foreign workers will force them to invest in training domestic workers and/or paying them more, resulting in more jobs and higher wages for Americans.
But this is the flawed logic of central planning. It ignores the fact that there are limits to the price increases that a market can bear. Businesses will automate functions that can’t be performed abroad and will outsource other functions to keep a lid on the costs of a key input—all of which will hurt, not help, American workers.”
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“Interestingly, Trump’s immigration ban does not extend to H-2A visas for farm workers. In fact, that’s the one category of visas that has expanded on his watch. Why? Because agriculture is the mainstay of many red state economies whose leaders have indicated that they would not take kindly to being cut off from a key source of labor. Trump has also carved a very narrow exemption for foreign workers “involved with the provision of medical care to individuals who have contracted COVID-19” and who are “currently hospitalized.”
But high-skilled foreign workers that blue states like California, Washington, and New York depend on are out of luck. What is likely to happen in these states? Will they rush to hire Americans with big bucks in hand? Not really.
For starters, there just aren’t enough high-skilled Americans sitting around to be hired. The unemployment rate last month—the peak of the pandemic—for computer jobs was 2.5 percent compared to the overall rate of 13.3 percent for all jobs, according to an analysis by the National Foundation for American Policy.
So as high-tech companies are choked off from hiring foreign workers, they’ll start outsourcing more operations abroad. This is what happened in 2004 when Congress slashed the H-1B cap from 195,000 to less than half”