Lookit, a lot of the H1-B slots are being taken up by consulting firms. We don't have a shortage of H1-Bs; we just allocate them poorly. That's what we need to fix.
As to the (what I consider a minor) founding issue, that's pretty simple: find an American co-founder. Form a company, apply for a second H1-B, and you can work for the NewCo from the minute you file (if you already have an existing one). Work on the side, make something people want, then transfer over the main H1-B once the NewCo has revenue/investment. Hell, I'm happy to sign on as a co-founder for as many companies as I can until INS stops me.
Did you read the article? He's not saying to increase the number of H1-B's, he's saying to increase the speed at which they can convert to permanent residents with green cards.
I agree. This is like trying to fix the high rate of injuries by getting more band-aids.
To me it seems the article is advocating changing the legislation to make it more convenient for immigrant workers. That is of course followed by a stern warning to us 'xenophobes' that if we don't our economy will be ruined.
They should instead advocate for punishing large corporations for gaming the system, underpaying H1-B employees and depressing everyone else wages. For every 'smart' and 'bright' H1-B visa candidate there are a thousand of unqualified ones, with flaky academic or employment history record. The reason they are here, because they are willing to work for %30 less than Americans are.
Consider this, though. Even the most qualified H1-B candidate can end up getting paid less than they should simply because of the way the green card application process works.
Once an H1-B holder has filed for a GC, they can't be switch employers or be promoted. Since most companies have pay caps based on job title, this means the H1-B holder can't get raises past a certain point. The end result of all this is you have H1-B "junior engineers" who've worked at the same company for 5+ years really doing the job of a intermediate/senior engineer.
The joke is that the company is not "gaming the system" at all. By not promoting someone with an outstanding GC application, they're doing exactly what the law requires of them.
Your proposal means more bureaucratic rules about what jobs are comparable and what pay rates should be. That's moving in the wrong direction, if you want growth and high-employment.
The article provides a much more simple solution: if someone qualifies to work in the USA, end the rules which tie them to a specific job. It's those rules that cause the gaming, limit competition by employers, and cause lower pay.
INS would stop you at the very first one. Do you think they haven't thought of this loophole?
INS has strict rules about the companies to which it will issue visas. Companies must have established physical offices, have existed for a certain length of time, have a minimum number of other employees, and be able to produce statements showing real customers and actual revenue to prove they are a "real" company.
None of these apply to a startup. Even for medium-sized companies, the lawyers, time and expense required to sponsor an H1-B is a big barrier to hiring immigrants on this visa. For a startup it's completely impossible: not just inconvenient or expensive; impossible. INS will not let H1-Bs join a startup, even a genuine one.
Lookit, a lot of the H1-B slots are being taken up by consulting firms. We don't have a shortage of H1-Bs; we just allocate them poorly. That's what we need to fix.
As to the (what I consider a minor) founding issue, that's pretty simple: find an American co-founder. Form a company, apply for a second H1-B, and you can work for the NewCo from the minute you file (if you already have an existing one). Work on the side, make something people want, then transfer over the main H1-B once the NewCo has revenue/investment. Hell, I'm happy to sign on as a co-founder for as many companies as I can until INS stops me.