The article is of dubious value, but you have some interesting points. I don't think we suffer from an "Overabundance of qualified, educated people". I'm risking getting blasted here, BUT, I think we have an overabundance of mediocre people with a degree. The difference is that we're producing fewer and fewer people with degrees in science and technology fields and more people with degrees which have little direct applicability in the workforce. Further, we're "forcing" people into 4 year programs who have more potential in vocational-type programs.
And I'm NOT being condescending regarding vocational programs. There's talent, skill, and dedication required for those jobs which I do NOT possess. I am a menace with any kind of carpentry tool and when doing anything an electrician probably should have touched live wires (120v, thankfully) more often than I'd like to remember.
But I absolutely agree with your point that we're falling behind in the US. We've been content to let other people do the "hard work" and encouraged many of our smartest and most talented people to pursue "quick-and-easy" money in areas like the financial industry to the ultimate detriment of other industries. This is anecdotal to a degree, but as a hiring manager, it was VERY difficult to find people of reasonable intelligence and talent. A friend who's a recruiter runs into similar problems finding programmers in SF for the rates companies are willing to pay. Yes, the bay area is expensive, but the salaries offered were reasonable for what I considered mid-tier and lower-end senior folks. The company was very flexible (including allowing varying degrees of remote work). Still he has a tremendous ongoing challenge to find, and place (before they get snatched) good people
The bottom line is that we need to encourage people to get education in areas where they can succeed AND which are in demand by the market. If someone wants to get a degree in a field not in demand, that's their business, but I don't think merely "getting a degree" should be the end goal nor encouraged.