It would be nice if wages were based on supply and demand. But, it's more like wages are equilibrium points in a dynamic system. For example, if cool software

It would be nice if wages were based on supply and demand. But, it's more like wages are equilibrium points in a dynamic system. For example, if cool software engineer goes from $100k to $200k, then his boss, Mgr #1, is going to want like $300k, well, just because she's a boss. And, her director is then going to want $400k because people with power titles should make the most. (Oh, and, by the way, everyone knows that Mgr #1 is probably the best programmer at the company, but she's 40 now, and her salary got too high, and therefore she would have had to move under R&D director PostDoc. But, he only allows PhDs with the title of 'principal' to work for him. So, now she has to be a mediocre manager.)