No, because good developers aren't strictly segmented by price. Bad developers are just as willing to take a high salary, and there are much fewer good developers.

At my last corporate job, we had a hard time finding good developers, even before the topic of compensation came up. That can be attributed to the unsexiness of the industry (fiber channel / SAN).

We went through a round of resume screening and applicants. We filtered > 100 resumes, and interviewed maybe 3. Our intern, an undergrad, was a better programmer than any applicant we saw.

One guy, with maybe 10 years experience, was coding on the whiteboard. We asked him to write something. He said "It can't be done!". I was seriously tempted to grab the intern and have code it up.

The parent comment is saying that to attract a good dev, e.g. from Google or IBM, you have to pay much more to compensate for doing less interesting work. Personally, I'd accept a living wage to work as a post-doc, but I'd need a truck full of gold to work for an insurance company.

Make sure to give your intern a raise. Seriously.

But this is a function of very high demand relative to supply. Why else would a 25-year-old with no college degree and five years of experience be able to charge $125 / hr for his services?*

* Not talking about myself, regretfully.