The reality on ground is that millions of computer programmers are unemployed and available from countries like India, China and others. Business will always do what they always do...look at the bottom line. They will try every trick to hire cheaper labor when it is available.
My advice to unemployed American programmers is to get together and form a company of their own and compete with the incompetent programmers from India. I am sure you will be a resounding success in the free market.
Good idea, especially in this economy. Be your own boss! Most programming jobs today are contract anyway (right?), contract out your work via your own company.