The flip side is that you can out-compete by hiring the underpriced developers with experience. As mentioned elsewhere in this thread, hiring for experience do

The flip side is that you can out-compete by hiring the underpriced developers with experience. As mentioned elsewhere in this thread, hiring for experience doesn't make as much sense if your company is the next iteration on mobile/social with an uncertain business plan. In the B2B/enterprise space this makes more sense, and anecdotally I've heard of great results from hiring people over 40 that can crank out tons of high-quality code while working sane hours.