They won't because they don't have anywhere near the same access to capital. There is no country even close to the US in this regard, and US salaries in software engineering are the exception, not the norm.
I think the macroeconomic trend is that the work is moving slowly to poorer countries. Makes perfect sense, as in US there is a lot of money, it should mean less desire to work and more to enjoy life, meanwhile in poorer countries people have high appetite for money/work.
For example in India it used to be only outsourcing, but now they are launching their own startups as well, some quite succesful. Slowly the capital will start accumulating there as well. And that is a good thing, for global inequality.
I feel so too, but I think it's a self-inflicted wound. When we were hiring last year I contacted people who referred candidates and well more than half of them never worked with the person, some admitted to have never been in contact outside of having gone to the same university. The first kind of referral is weak, the other one is purely useless.
