The Silicon Valley immigration priority was not the topic I thought would explode and fracture the tenuous MAGA alignment with the New Big Tech group represented by Elon Musk and his billionaire network. However, we learn more every day.

This is a jaw-dropping moment to watch unfold as a very influential sector of the political discourse begins a full-frontal attack against those who are pointing out how the tech community abuse H1B visas to replace American workers. In the background, of course, is the context of widespread immigration policy fraud being one of the priorities for the average Trump supporter.

The Silicon Valley team do not seem to review discussion of the H1B manipulation/fraud within the larger American economy as a problem, as long as the discussion of the visa fraud does not impact their business models. However, as soon as the H1B abuse started to be framed around Silicon Valley’s participation therein, the New Big Tech group take a nuclear war approach to defending their interests.

[SOURCE]

Having followed the immigration issue for a long time, yet specifically only having a big picture review of the H1B visa issues, it has been astounding to watch how Elon Musk, Vivek Ramaswamy, David Sacks and the Silicon Valley supporters and influencers are responding to having the H1B visa fraud confronted.  The self-interest in their defense is just astronomical to watch unfold.

Empowered by what can only be reasonably defined as their perceived influence over President Trump, the new-era Tech team are quite forcefully telling the MAGA base of Trump-supporting American workers that their concerns, views and perspectives are irrelevant.

It appears that most of the explosive sentiments revolve around H1B visas in the tech sector issued to Indian workers specifically.  Apparently, the friendships, networks and teams attached to the sector of computer engineering carry with them an emotional component.  I guess that should not be a surprise considering this is essentially a peer-to-peer wagon circling, in defense of the H1B visa problems in the tech sector.

As said before, it always appeared the MAGA alignment with Silicon Valley would not be an issue until the interests of the billionaire tech team came into conflict with the MAGA base.  I did not anticipate the fracture being so fast, nor did I anticipate immigration would be the trigger.  However, H1B visa issuance is apparently a key part of the Silicon Valley business model.

That said, several pragmatic aspects of the discussion are now being lost amid a very toxic shouting match that has begun.  President Trump and JD Vance are, perhaps understandably, staying very quiet at the moment.  However, that silence is soon to be impossible as both sides of a very divisive issue are going to eventually demand President Trump to weigh in.

I will try to cut through some of the toxic noise so that we can discuss the larger issues.

Theo Wold provides some context:

“I led the drafting of legislation in the Trump ‘45 White House to create a new legal immigration framework. I saw firsthand what happens when ANY visa reform is proposed: executives from the biggest multinationals and lobbyists from all kinds of industries are banging on the door, demanding to keep what they have.

What they have is a tangled morass of visa classes that are carve-outs, handouts, and special favors to particular industries, bought and paid for through decades of lobbying feckless members of Congress and presidential administrations. Industries lobby for the foreign workers they claim to “need,” and then they get a visa class carve-out, which they protect (and seek to expand) at all costs.

And there are enormous costs for our nation – costs that fall on the American worker with devastating consequences. The statistics bear that out: job gains go to foreign-born workers while American workers post net job losses.

I also know this firsthand because I grew up a working-class kid, watching my father (and by extension, our family) suffer from unfair foreign labor competition.

For too long, Americans have been largely unaware of the source of these problems because the policies are designed to be too complicated and are made largely invisible to public scrutiny. I’m glad the right is having an open debate about legal immigration. It is past time.

To be clear, the difference between O1Bs and H1Bs matters in this debate, for example, because these visas are intended to accomplish very different goals and are entirely different in scale, BUT both visa classes are rife with abuse. (Plenty of Reggaeton stars and anti-American athletes enter the U.S. on O-1 visas.) Essentially ALL visa classes are abused. Again, that’s because these things exist to serve special interests on one side of the labor market (and it’s not the side of the American worker).

The debate can’t be confined to a single industry – it’s about Big Tech, Big Ag, tourism and hospitality, transportation (airlines, trucking), the media & sports entertainment complex (yes, the NFL and MLB have their own special visa classes and their own special treatment by DHS and State) and many many others. They all want special visas to import cheap and convenient foreign labor. Even the roofing industry is now seeking its own special visa class. And all of these special classes get expanded over time, allowing the American worker to be flooded with foreign competitors for no reason other than labor savings for employers.

I, like many Americans, voted for a sealed border and an immigration moratorium. Americans need to retake control of our immigration system — how many are coming in, for what reasons, and for how long. One question absent from our current system: how does this individual immigrant benefit the American nation and her people? No more blanket exemptions or economic rationales. Immigration is a regime-based question, as both Hamilton and Jefferson wrote on extensively, and our system should reflect that Americans must also demand meaningful investment in assimilation and integration requirements for legal immigrants here already.’ (Source)

Within the debate, those who advocate for the H1B visa process are quick to call anyone a “racist” or “nativist” who stands against it.  Within the tech industry the use of H1B is positioned as vital for their success.

As can be noted by the extreme position on the pro-H1B side of the discussion, they view this debate as a zero-sum contest.  The position of Musk and the Silicon Valley tech group is that if the H1B process is stopped, American technological advancements will immediately cease to exist.

When it is pointed out that Silicon Valley discriminates against white Americans with engineering degrees and or skills, Silicon Valley shouts back the same arguments as the DEI promoters Musk claims to abhor.  Musk and the tech group immediately use the Alinsky attack method (isolate, ridicule, marginalize) against anyone who speaks forcefully against their interests.   The Musk allies and influencers then pile on.  It is something remarkable to watch happen.

Years of Americans in various business sectors being forced to train their foreign replacements before the Americans are terminated from employment, underscore a very hardened stance against the H1B abuse. The decision by the Silicon Valley network to dismiss this problem because they want to sustain their current business operations is not going to end well unless some cooler heads immediately intercede.

Nicole Shanahan, Robert F Kennedy’s former running mate – and also a Silicon Valley network influencer, puts it this way:

“Having lived in Silicon Valley for 20+ years and founded and sold an AI company, I’ve seen firsthand how we rely on H-1B to fill grueling, unglamorous coding jobs. These jobs are essential, and we need capable people doing them. But the system needs an overhaul.

Here’s why:

To keep pace with global competitors like China and India, we need Americans ready to tackle the challenging jobs in these fields. We have them, but often our STEM grads turn their noses up at these entry-level, low-paying coding positions after investing in a costly education.
So why are immigrants from India, China, and elsewhere so eager for these jobs? It’s not because they’re glamorous or because these roles don’t exist back home. And definitely not because they offer high salaries. There’s something else driving this…

The undeniable proof that the United States is the single greatest nation on earth is that people from every corner of the globe dream of coming here—not to China or India—but America.

I take issue with some of the discourse I’ve read online today suggesting “lazy American culture” is the main driver for why we need to continue the H-1B program. Let’s be real: tech companies getting massive breaks on cheap labor at the expense of the American way of life is predatory.

Blaming our culture for why American STEM grads won’t take underpaying jobs is ridiculous and insulting.

The system we’ve constructed with H-1B visas, whether we like it or not, incentivizes people to come here and serve as essentially indentured servants for Big Tech, taking on the tough, grueling jobs that few here in America are excited to perform at the current suppressed salaries.

In return, if you’re good at your job, you’re then put on a fast track to get a Green Card, which means legal status and the chance to bring your family over through chain migration.

I’m reminded of this famous line by our second President, John Adams: “I must study politics and war that my sons may have liberty to study mathematics and philosophy. My sons ought to study mathematics and philosophy, geography, natural history, naval architecture, navigation, commerce and agriculture in order to give their children a right to study painting, poetry, music, architecture, statuary, tapestry, and porcelain.”

Just because our kids have the “right” to chase artistic dreams like music and painting, doesn’t mean we should bring in hundreds of thousands of foreign workers to displace them in math-intensive careers. It’s a two-fold issue: both our education and immigration policies are broken. Instead of tackling these complex issues head-on, Big Tech monopolies and tech VCs are looking for the fastest way to outcompete globally and become industry giants. It’s paid off—look at the insane valuations of these companies!

We can’t entirely blame them for this approach—it’s been the industry norm for 40 years—but we can insist they seek out the tough, lasting solutions. No more temporary fixes.

I was asked if teaching American kids coding from a younger age would make them want these coding jobs. My response? No, it won’t. These jobs aren’t fun, people.

But, do I think removing the incentive of attaining legal status would reduce the volume of foreign applicants? Absolutely.

And, guess what? That might finally force Big Tech to look for workers right here at home (and pay them a competitive wage). Americans expect fair pay, which means these companies would have to start sharing their wealth rather than hoarding it.

Meritocracy is key to America’s greatness, but so are justice and fairness—we shouldn’t keep rewarding an industry that has curtailed free speech and American values. After Trump’s recent victory, the everyday worker feels empowered like never before. They won’t surrender that power, and frankly, it’s not right to imply they should.

There are numerous ways to improve our immigration system while safeguarding the American labor force (and I say “force” because it truly is capable, creative, and powerful).

Here are two straightforward steps to start the process:

1. Immigration policy must be designed to protect the American way of life and its workforce. Singapore’s work permit program, which they designed in the ’90s, was built from this standard and could provide good inspiration. They use a modern-day designation system to manage the influx of labor across various sectors.

⁃ Employers face levies (essentially fees that employers have to pay for each foreign worker they hire. It’s a way to manage the number of foreign workers coming in by making it more expensive to employ them, encouraging companies to also look for talent locally).
⁃ There are Dependency Ceilings, which essentially limit the number of foreign workers based on the local workforce—this is KEY.
⁃ They impose restrictions on the countries from which workers can come.
⁃ Permits are diversified across industries to ensure balance.

2. Special economic zones are amazing and can transform local tech job markets. Hiring locally is going to be critical for making sure Americans are taking key tech industry roles AND able to support their families.

If we really want to lift America to heights unseen in generations—not just talk about it, but actually do it—then we can’t continue to stick to outdated strategies that have harmed Americans. We owe it to ourselves and our communities to aim higher and do better.” (source)

As I watch this debate unfold, I find myself finally realizing why all the Silicon Valley tech people were such staunch Democrats.  Their worldview does not: (1) seem to comprehend American Economic Nationalism as a priority; (2) seem to appreciate the importance of true liberty in the creation of the remarkable outcomes from American exceptionalism; and (#3) they appear to be inside a bubble of self-interest, unattached and unaffected by the economic issues that have seriously harmed the MAGA base.

In essence, the Silicon Valley network represented by Elon Musk team, does not connect in the same way to the important priorities of middle America.  The technocrats are, well, Technocrats.

Watching this debate unfold is quite remarkable.

December 28, 2024 | Sundance