That will make company like MS/Google/FB/AMAZN, invincible. Startups are going to be starved. They will not have that much leverage to recruit desired talents.
I think what he means is, startups can't deal with the uncertainty and lead times the current H-1B system imposes.
Large companies just project how many openings they would have in October next year, hire appropriately, and park them in offshore offices if they didn't make the lottery. And they can afford the application fee too
I don't work for a startup, but I do work for a small business. The current system does not work for us because there is a lot of uncertainty in the application process. An auction system would actually be an improvement for us and many other small businesses.
So what? If big companies are economically more efficient, let them have the workers. Nobody should be forced to work for a poor company that can't pay up.
The current system also puts small companies at a disadvantage. I work at a tiny company that pays more than the companies you listed and we have a lot of difficulty getting new H1Bs.
If we had an auction style system then at least small companies would have the opportunity to pay more and get access to foreign labor. In the current system, this is not even an option so companies like mine are disadvantaged with no recourse. Startups could always hire native workers or hire foreign workers offshore.
otoh, artificially allowing startups to get cheap engineers means that these or some other engineers are deprived of an opportunity to make a lot more money at Google/Facebook. Engineers are thus being exploited by unethical employers flooding the system
