Supply vs demand works until WFH begins to even the payscale. SEs everywhere started screaming about pay reductions. There is no lack of SWEs, that is now more than apparent.
It's simply the flavor of the decade, just like last bubble it was website/graphics design. Bubble is bursting IMO.
I think the bubble is shearing perhaps. The top wages for SWEs in many markets seem to be going up and substantially so, while the wages for the broad middle of the market in globally high-cost locations aren’t going up and, as you observe, are at risk of falling as/if WFH-driven globalization accelerates.
It's simply the flavor of the decade, just like last bubble it was website/graphics design. Bubble is bursting IMO.