We're talking about different ends of the market. You're talking about the high end where sought-after workers get multiple competitive offers and big raises from switching jobs frequently. In that case a hiring downturn means less offers, less switching and less raises. I'm talking about the low end where every employer has set a floor of let's say $120k for their developer positions, and if for some reason every employer decides that a job seeker is worth less than that, that job seeker won't be able to get a job as a developer. In that case the hard pill to swallow isn't accepting less money, it's leaving the field. It's possible for the floor to decrease over time to match the perceived value of that job seeker, but worker compensation is sticky so this would require a long downturn, during which time the job seeker will become even less valuable due to having been forced out of the field.
This all leads into the question of how rational and efficient the hiring market for developers is. I would say this is at least an open question, to put it mildly.