Long term, however, there's a risk of a monopoly forming, which isn't good for developers or society. FAANG are willing to pay big salaries because they are competing. If they use their power to destroy the competition, that market force goes away.
Big companies have been overpaying developers for almost a decade now. It is not going away. It is not some short term thing. Instead, that is what these elite tech companies pay.
It is not some singular company, that is buying up all of the tech talent. Instead, it is a whole bunch of elite tech companies, paying lots of developers lots of money.
The idea that there is one singular company, that is a monopoly on developer talent, that is false, given that there are a whole bunch of them doing it.
But there is competition among those companies even if "everyone" else pretty much doesn't even try to compete with them based on comp. (Which makes talking market price a bit odd in this case. I imagine an economist has some term for it. I guess there's a market price for developers who can get a FAANG offer and then there's a market price for everyone else.)
If the companies sell ads, ads get more expensive. Then the items those ads promote get more expensive, working its way down to the rest of the population again.
Those developers will also see the increasing prices, but the extra cash will hopefully keep them happy for a while.
On the other hand, capitalism has this great thing where going bust is not the end of the world (or life), compared to previous eons.
A system which allows (and encourages) failing is great.
On the other hand, does it mean that some employers won't have money to hire talent? And will that result in some businesses failing? And is that ultimately bad for developers? I don't know, but it feels like it's such a big system that it will balance itself if that is the case.