Because it is a cut. Your spending power is less. It's a real terms cut. There's a good chance they've increased their product prices by inflation as well.

I mean they don't have to raise salaries, but if someone is offering me a higher rate I'm going to go.

You have no responsibility to your company.

Now if the entire market is telling me to take a cut, either it's collusion or software developers are simply worth less now.