The problem is that with software stuff only have to be written once and the marginal price is as close to zero as it will ever get for just about any product.<p>Which means that the company that pays the highest salary will produce software that is better than the competition and the cross them in the process. In other words, companies will die if they don't hire programmers as least as good as those who can compete with them. And the programmers can start their own companies at any time, if they so choose.