[yazaddaruvala]

Great point! I did not address the global talent pool, I only considered the US as a closed system.

That is because I disagree with: "In many cases, H-1B work isn't extremely location-sensitive, and foreign suppliers are acceptable substitutes to local suppliers"

For an H-1B, US companies go out of their way to recruit remote talent, pay legal fees, take on risk, to get a talented worker to come work in the US.

For a significantly reduced cost to employer, they could have recruited that same worker in their country of origin, and pay them for working in their country of origin.

If H-1B work is location in-sensitive as you suggest, why do for-profit companies, take on additional costs, risks, and pay higher wages for the same talent?