The “economic reasons” why H1-Bs are often preferred are actually legal reasons - H1-Bs have no rights, no protections, and thus can’t effectively sue for abuses (in addition to being paid much less).
The reality is that all “economic” arguments for H1-Bs are political arguments. It will never, ever, ever in the history future past or present of the human race be more cost effective to bring someone from the other side of the planet to do a job that could be done just as well by someone already on this side of the planet.
Is it TCruz who is the defender of H1B’s or is it all of them?
In general a contractor is in the same boat. Being one’s own B2B contractor can recoup some of the bite, but most hiring firms prefer established contracting firms.
We might be able to say “psychological” and “logistical” arguments here. People who have the motive to pull up roots and go where the demand is (and once they do, whether it is across the globe or across the land matters little with modern travel) are going to be viewed as more dedicated.
I found this out when, having gone broke from an absence of local work, I opened my job ads up to “contracting in the entire USA.” Suddenly a drought turned into a flood. I had virtually H1B’d myself without ever leaving the country. Or maybe this is “Grapes of Wrath” writ small.
You’re absolutely right; H-1Bs are just used to erode workers’ gains of the last century. Often their wages aren’t significantly lower; they just work 7 days a week (as described to me by an American programmer that had to deal with them). The Americans would leave on Friday to return Monday, while the Indians would be working over the weekend as well.