Earlier quoted context omitted.
Why else would a buyer invest heavily in increasing the supply?
I think that companies think they can make $X with 10 engineers, but > $2X with 20 engineers. Thus, allowing more people to be comfortable as a software engineer increases the amount of money they can make. Right now, with 6% interest rates? Nobody wants to make money that badly. But it won't be that way forever.
c. 2010's, there's many reasons but the relevant one here is the DEI initaitves. You get tax breaks for diversity, you will hire the right people even if they just sit there. very dishonest, but at least they compensate well. Same logic, if 2x engineers only operate at 0.8x capacity but you save almost half your revenue from not paying taxes, the decision is obvious.
But as you said, we're in the 20's, market is captured, and free money is gone. That era of hoarding technical talent like trading cards is over