With out them we can be replaced by contractors and it's the contract firm that is the one useing the H1B's
At the end of the day the customer always decides the demand. Not the other way around. In this case the customer is the employer and if he can find a way to find someone just as qualified for cheaper he should be rewarded for this. Are you really saying you do not have the skillsets as someone with no plumbing and language barrier issues who is fresh out of school?? If so the problem is you.
Companies hire Americans because we know more and are right there with better business processes and the employer is willing to pay extra for this. It is capitalism.
No, it is neo-liberalism.
The notion of "the market" as an impartial arbiter of price rests on the concept of "perfect competition"; that is where all players are essentially equal and none can unduly influence price. What neo-liberalism has given us is situation where a minority of wealthy players can distort the market to their own advantage. This is particularly true in the labour market, where outsourcing/off-shoring is being used (in countries like the UK, as well as the US) to create a cheap (and compliant) workforce. Quality is an afterthought, if it's considered at all.