I think we might be talking about two different Silicon Valleys. The one here in the real world has a glut of developers fighting for scraps. Companies that have the luxury of being extremely picky and only hiring the best. Lots of interviewing and so-called "open positions" but not a lot of hiring.
The unemployment rate for Computer and Mathematical Occupations was about 2.0%. [2]
Anecdotally, since a large part of someone's world view is by bad things that have happened to them, none of my friends from college are working outside of software. Some earn at the 10% spot in low cost-of-living areas, but they all are employed with enough money to get by.
1. https://www.bls.gov/ooh/computer-and-information-technology/...
2. https://www.bls.gov/web/empsit/cpseea30.htm
Edit: this only holds true for the U.S.; unemployment for coders is probably far different in other countries.
I've never thought of it this way, but it seems so obvious in retrospect.
1. there isn't much of a culture of entrepreneurship;
2. there are few VCs, and they're pretty much all hyper-conservative, to the point that they may as well be banks.
In a few months/years, students from India and China going to US for grad studies will slow down, and most of them chosing Canada over US.
In a few years, if US continues its systematic and unfair ways of keeping citizens of India and China from immigrating to US, and Canada continues its policy of courting immigrants, you'll see a culture of entrepreneurship growing in Canada too.
Meanwhile, these startup founders often come back to Canada after getting their startup off the ground in the US... to create a Canadian "engineering branch office"—i.e., to hire tech talent at the cheaper Canadian going rate. But, of course, this only happens for startups that manage to get to a stage where they need whole offices of additional tech talent—which is not most startups.
Given this dynamic, I wouldn't expect increasing the number of available developers would do much at all. Now, if you could come up with some way to keep entrepreneurs from moving to the US, that might help...
Canadian policy was always much easier than US for immigration. I wonder then why Indian/Chinese did not go in much larger numbers to Canada as compared to US.
They did, and they still do:
Canada's percentage of foreign born population: 20.6% [0]
US's percentage of foreign born population: 13% [1]
[0] http://www12.statcan.gc.ca/nhs-enm/2011/as-sa/99-010-x/99-01...
[1] https://www.brookings.edu/blog/brookings-now/2013/10/03/what...
Being the only plumber in town means you can charge whatever you want. Being the only developer in town means you're telecommuting and competing with Satyam.