> So, when has an industry or business ever sought out "higher-priced labor" 
> when qualified, competent "lower-priced labor" was available?  Or was I 
> asleep at the time?

How about pretty routinely?

Most such decisions were always political and not economical, so it was common 
practice to pay extremely high prices for contracting, consulting services 
because they were provided by a vendor, rather than taking advantage of 
significantly lower priced [and qualified] individuals that could have easily 
done the work for a fraction of the cost.  All one has to do is to consider 
what companies willingly paid to IBM per hour, versus what an individual would 
have charged.

In short, the problem isn't as simple as portrayed.  Companies still pay high 
prices to qualified individuals, however they are no longer prepared to do it 
as permanent employees.  They recognize that they need expertise, but they 
don't necessarily need it 365 days of the year.  So, we see more qualified 
individuals being leveraged across multiple organizations, while the day-to-day 
activities can be handled by "lower-priced labor".  This has reduced the number 
of opportunities, especially for those seeing permanent positions.

Adam  

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