Yes, We Have a Ph.D. Glut.
scienceblogs.com
scienceblogs.com
When a hiring manager specifically excludes overqualified people, this is a pretty big red flag to me. Managers usually only say this when they have a very tedious or low paying job that they think a PhD-type will quickly abandon for something better. I wouldn't exactly call this a "closed door", I'd say it's more of a sign that there are lots of better opportunities for qualified people. If these other opportunities went away, then the tedious jobs would start raising their qualifications too.
PhDs also have many other "open doors" that other people just don't have. All those teaching and research jobs you mention are available to them.
One can only hope (but I doubt it). Google doesn't hire just any Ph.D. -- they hire the best people who have CS experience, and that's only a tiny sliver of the total Ph.D. pool.
That said, I've experienced the downside of the degree, particularly when interacting with tech people. Lots of geeks get their dander up when they find out you have a doctorate, and start hammering on you harder, as if to prove something to themselves. I've also had people explicitly question my interest in jobs, to my face. It's definitely a real phenomenon, and I can understand why people might want to remove it from their resume. (If only it were easy to explain that 5+ year gap in employment history....)
I've had this happen as well, but once you overcome these obstacles, you are at an advantage.
On interviews, I get that initial skepticism that I'm too "pie in the sky". That vanishes after a coding test. As for my interest in jobs, I've been asked that, but it's always been a fair question (in fact, I've never been asked that about a job I really wanted).
I'm just saying that I've personally experienced the downside, so I know it's not a made-up phenomenon.
I'm on mine to do a better job in industry. And I'm not alone where I work, not by a long shot.
There are independent research labs and research positions in companies, but in general they are trying to solve business related problems.
"Those mediocrities who get to run the economy" - I'm not sure who you mean exactly, are probably involved in business and thus vvoluntary are interacting with people who value whatever they produce. If you are referring to politicians, well they are adept at spending other peoples money.
2. Because the scientists are taking little risk compared to the founders and investors who build the institutions that support their research.
3. Because humans are hard-wired to respect rainmaking and distrust science. Social behavior has been humanity's evolutionary killer app for the last 1500 centuries. Science has existed for maybe 5.
2. The founders are not mediocrities. The people who come in later and use social manipulation to control resources they didn't create are the mediocrities.
3. Interesting and reasonable point.
However much that helps.
With a CS PhD, you have a lot of options: academia, industrial research (Microsoft Research, IBM Research, and so on), working for or founding a startup, etc. Happily, many CS graduate schools and professors explicitly recognize that many grad students don't intend to pursue a career in academia, which I think is less the case in other academic fields.