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by Chris2048 3422 days ago
I think the problem here (with this conversation) is what I call "All roads lead to GMF[1]".

You can't explain things based on an entire economy without taking into account the entire economy, and all it's parts and interactions; much like, say, blood-sugar levels in the body involve multiple organs.

If you focus on one area of the economy, you must avoid those 'non-local' attributes, unless you are willing to do this. If you analyse the attributes of any local economic part enough, you will eventually hit upon a non-local attribute; Hence, any analysis eventually hits this roadblock.

Back to context, the specific effect of H1B visas, on national salary is complicated, because salary not only is non-local, but involves the silent interactions of supply vs demand across and outside the nation. You'll hit all sorts of GM-like fallacies if your analysis is too shallow.

This is why it is necessary to take it, almost as 'faith', in the mechanics of the market; A true analysis of market principles is a complex process indeed, most people can only take them on faith at some level. Even mathematicians accept some (personally) unchecked axioms.

[1] https://en.wikipedia.org/wiki/Parable_of_the_broken_window