I don't have any insightful macroeconomic explanation to offer. Just my $0.02: if you are complaining about earning $80,000 to sit behind a computer screen and type all day, you are one entitled SOB. There are 10 million people in China and India who would probably cut off their right arm if it meant they could work for a well-funded startup in the Bay Area for $40,000 a year. They'd make it work even if they had to live in RV's in Fremont.