H1B is ripe with abuse - this article by Bloomberg says that half of all H1-B visas are used by Indian staffing firms that pay significantly lower than the US laborers they are replacing:
- https://www.bloomberg.com/graphics/2025-h1b-visa-middlemen-c...
Looking at it solely from a perspective of competition between labor glosses over the fact that insufficient labor is also bad because it keeps companies from growing and hiring more people.
So sure, while the fewer jobs that they can fill could have higher wages (not a given, because lack of labor can stunt or kill companies) there could be much fewer people employed overall, which is clearly bad overall.
Of course, that assumes there is enough room for companies to grow. There are strong indications (e.g. the various labor and unemployment surveys) that this is the case in the US. In fact, there is a credible theory that the reason the US managed the inflation crisis so well was due to the immigration crisis.
I elaborated more here (along with a couple of relevant empirical studies about how H1B actually impacted employment and wages of native workers): https://news.ycombinator.com/item?id=45308311
Better instead to look at larger scale studies out there, including the ones I mentioned in the comment I linked. The results are much more nuanced, but generally they find negligible or mildly positive impact on native workers, suggesting they are largely orthogonal to foreign workers.
The point is that the dynamics are more nuanced than simple supply vs demand.