Earlier quoted context omitted.
Okay, but I just don’t think it makes sense to say that companies who cannot afford to pay market rates for software engineers are experiencing a shortage of software engineers, unless there is something preventing market clearing.
> companies who cannot afford to pay market rates for software engineers are experiencing a shortage of software engineers, unless there is something preventing market clearing By definition, the market rate should involve zero shortage. That said, search costs and regulatory barriers are significant frictions. In the midst of an unforecasted surge in aggregate demand and you have an explicable event.
Lots of companies can’t afford to compete with G / Fb / etc for principal engineers. (And many companies who should hire good people cheap out and don’t spend the money.) Thus lots of important, otherwise valuable projects are staffed by people who struggle to take technical responsibility for the tasks in front of them.
This becomes self reinforcing - senior engineers have a lot of market power. They (we) generally don’t enjoy working on projects with mountains of technical debt alongside the processes which have a track record of creating them. “You’re really talented. Why would you work at a bank / corporate?”