The issue is that tech can pay exorbitant salaries compared to physical-world companies as the product they're producing has infinite reach and is often 'evergreen'

It's the same issue as investment banking; when you can almost literally print the money you're paying salaries with you can hire everyone at any price.

The issue is, that leads to the smartest people in the country all ending up at 'virtual' industries and you discover eventually you don't have an economy, you just have a giant video game.