> I think businesses are able to pay their workers, just not absurd amount of money that FAANG pays their respective workers.
If the lower amount is reasonable and people are willing to work for it, then there isn't a problem. But you said, "FAANG just shoot everybody expectation to the roof and non-FAANG is having hard time to compete in salary (sure, there are some exception but they are exceptions)." So it sounds like you think people aren't willing to work for the lower wage.
Given the numbers you're proposing, I think you may have a wrong impression about what engineers are being paid, both inside and outside of FAANG.
The salaries you're quoting might be true for the bay area, but that's because of the absurd cost of living there. Those numbers are certainly not accurate for the entire US or for the world. FAANG workers are paid that in the bay area, because that's what their skillsets are worth when you adjust for the bay area's cost of living. And if you make the decision to put your startup in the bay area, it's completely unreasonable of you to expect your highly-skilled workers to live in slums because you couldn't locate your business in a place where you can pay to support the cost of living. Maybe that means your startup fails, but that's on you: you're the one who came up with that crappy business plan, and it's not up to workers to prop up your crappy business plan by working for substandard wages.
> Are you suggesting that small businesses should just die?
Ugh. Don't ignore half of what I said. If a business can't pay their workers the business should die, yes. But there are a lot of small businesses that seem capable of paying their workers, so I'm not sure why you think this is an undue burden, and I'm certainly not saying that those small businesses should die.
Again, why do you think that workers should prop up your insolvent business by accepting substandard pay? Pay fair wages or GTFO.
Whatever unfairness you think exists in competition between small and large businesses, exists tenfold between employees and employers. If small businesses are underprivileged, crapping on workers who are even more underprivileged is not the solution to that problem.