My most important takeaway from this is that you're starting to publicize the conversation from the entrepreneurial elite.<p>When the first recession dip happened in the millennium and we were lamenting the manufacturing industry, I was preaching the same thing to my wife and liberal friends, that it's about retraining and that's where our tax dollars should go rather than subsidies and tariffs.
Unfortunately, especially with government spending, the devil is in the details and the follow up accounting. Look at all of the money that was pissed away to corrupt contractors in Iraq with nothing to show for it.<p>From a purely technology industry perspective, the implementation details that need to be solved are with Placement. Every job posting for startups has "Rockstar Developer" in them. The people you're training won't be able to get a sniff from entrepreneurs who need to maximize each dollar spent on a new employee and they are not willing to train people up while building their team.
I'd say they could freelance, but that market is drying up as the cost of living in the US has out priced many developers here against Eastern Asia and Eastern Europe. This won't change until people start to realize the true cost of a Repeat-Quality-Check loop that happens with cheap dev.<p>Finally, you have to solve the no-skin = no-value human penchant for not caring too much about things we get for free.<p>I think if you combine the arguments above, you can get to a solution where Government takes tax dollars to Subsidize Placement of Individuals who Qualify by paying their own way for Retraining with a Government Qualified Student Loan. Place them within Larger Companies (banks, established Tech Giants like MS) who can absorb their nascent skill set while getting a Subsidy for (like you said) the first X months while the person is employed. To make it work, repurpose some bureaucrats from different areas of the government in order to qualify and follow up (this is an absolute MUST). MS can complain about not getting enough H1-B's to come in from India, and be presented with this counterargument of "why don't you hire the people from our program?"