[daladd]

> The demand (and hence average salary) in SF for programmers would go way down

I think you mean the supply would go way up, and thus the market-clearing salary for new hires would go way down.

Also (all other things being equal) the number of programmers employed would go up as the equilibrium shifts to a lower-wage, higher-number-employed point on the demand curve.

[plinkplonk]

yes you are right. Thanks for the correction. fixed in the original.