It's just expensive. It means that some low-value projects aren't profitable and all projects are higher risk than we are currently expecting them to be.
> SV has done this to itself.
I'm sympathetic here. But if we let wages in urban centers rise, companies will be more willing to set up offices in other parts of the U.S. Or virtual offices even.
I once interviewed for a company who was opening a new Nashville office because they had tapped out the talent pool around Ft. Campbell, Kentucky. It turned out they were still trying to pay Ft. Campbell salaries there. They forgot that bigger talent pools have more competition.
You can either throw small bait into a thousand small talent pools, or invest in some serious tackle to fish in the ocean. You either spend money on sending recruiters out to the dark, untapped reserves, or you spend enough to compete with the entire rest of the world on salary. If you really need the talent, and you can't afford the price tag, you have to settle into a niche that is just big enough for your company, and not worth the effort for someone bigger than you.
If you need cheap engineers, you can get them from any town or city that doesn't already have an 800-lb gorilla employer in it. But you have to go to them. If you move them to you, they stop being cheap, because your competition can snap them up as easily as anyone else.
That's the something that can be done about it. If you can't compete in California, stop trying. Go somewhere else with weaker competition. People follow the jobs. If you don't believe that California needs more people, they need to start exporting those job opportunities to places with less severe population pressures. Otherwise, the people will keep coming.
The definition of a shortage is "prices are to high".
My post was countering the dumb meme that I always see which is "there isn't a shortage of devs, companies just don't want to pay high salaries".
I'm all for the wage argument.... yes if you raise wages high enough they will come... but why take it to such extremes?
SV has done this to itself. It clusters around tiny, restricted geographic locations, which push out the locals, gentrify entire cities, and then these companies have the gall to complain about the cost of labor, which they helped to define the high prices of. More consideration is placed on proximity than prurient economic interests, because Business Interests Always Come First.