Spot on. Everyone with a degree or a diploma wants a better life, and there is simply not enough money going around to provide that.
Helping the populace develop some basic coding skills is useless - what do they do with these skills ? It does not mean that lots of people become coders capable of working on enterprise level software ? And if they have half a brain they will know that IT is not going to be the field of their dreams.
The competition with India and China is economic - they can survive on a lot less money and in the USA you can't.
So yes, this is a drive towards the bottom. As salaries and living standards in China and India adjust upwards, it will be easier for the West to compete - but our salaries and living standards would need to go down substantially. And there will be no money for the welfare state to support us if we are ill or out of work. There are plenty of other nations like Vietnam standing by to provide coders when the Chinese or Indian ones get too expensive.
What I find most appalling is that when I started out in IT , it was a middle class White Collar job. We were well paid professionals with some respect in the market and aspirations. Now the best we can come up with as a replacement job is fixing toilets or cutting hair.