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The problem is the same thing that is happening everywhere. Companies/individuals from countries where wages are extremely low will give drastically reduced prices in order to get the job. After all if the average wage in their country is 2 bucks american an hour they can do that and still make a good living.
Webmasters/companies looking to save a buck will go with the cheaper price. North American designers feel the pinch because all the work is going out to cheap outsourcing so they feel they have to lower their prices...because they have to make at least some money.
Solution? Hell if I know but I am glad that there are still some webmasters/companies who are willing to pay the going rates and give the North American designers some work where they can make a decent living.
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