50% raises are a sign of company growth and a competitive market. Once a business is well established, growing slowly, and there are enough developers to go around compensation will settle down.

We're in the first few decades of Internet technology companies. This is the industrial revolution all over again. If you look at the first factory workers in the early-1800s, and the first steam engine engineers, and the first factory production foremen, they were quite well paid relative to other jobs. Later, when rural folk saw what was happening and moved to the cities and mill towns for work, and the supply of workers boomed, the wages stopped growing (and actually fell). The factory owners made hundreds of millions in today's money. They built towns for their workers to live in (Bournville, Rowntree, Port Sunlight here in the UK). Now Google is looking to do the same sort of thing. Its all playing out in a very similar way.

Give it another 20-30 years and things will look very different in tech.