From your specific suggestions I think what you are advocating is employing the Keynesian economic model in a way compatible with a libertarian belief in market

From your specific suggestions I think what you are advocating is employing the Keynesian economic model in a way compatible with a libertarian belief in markets. Nobody in the mainstream believes that, that is why you are not seeing it and it is not a practical route. Krugman does discuss that the only way in the current situation to get wages down is deflation, which he does not regard as quick enough (or a humane way to solve the problem). I suspect the Keynesian model would probably perform pretty well if the suggestions you make were undertaken. The demand that suddenly disappears when such a large section of the population has their wages cut drastically plus the fear that it could be cut again at any time with no notice would seem to me to do a lot to offset the demand created by being able to employ a Spanish employee at $1/hour. I'm not a big believer in libertarian ideas so I think that it would probably be a disaster for society as a whole, but that is a debate for another place and time.