That solution is inherent in what he said:
"I fully understand what you're saying. In other words, as technology races through the economy, a lot of times worker skills don't keep up with technological change."
But the problem nowadays is not worker skills, it's the fact that jobs of ALL skill levels are being lost here. We have some highly skilled tech workers, engineers and managers who can't find work or can only find work at a significant pay cut. All the training in the world, all the improvement of skills can't change that - instead, they are being asked to compete with someone who, in all likeliehood, was trained at an American university and is overseas with much lower living expenses. The tech worker in his mid thirties can't exactly call his mortgage company and have his mortgage reduced to reflect the lower living standards of his competition. This is a gut-wrenching change - but the government should be working to staunch it, instead of increasing the bleeding with policies such as H1-B.
Everything the government touches, with respect to jobs, goes sour. H1-B's could be one example. But the migration of jobs overseas is not the result of merely "Corporate Bigwigs" deciding to move. The same government you are asking for assistance is the government that saddles American business with costly rules and regulations, taxes, and out of control tort laws. How can a government that has screwed it up so badly already suddenly get it right?
No one here is regularly bleating for bigger government in other walks of life. Why do we think they can do a good job here?