Salary Supply and Demand

It is about supply and demand in the labor market, full stop. People aren't paid based on the value they create. They are paid based on how hard it is to find other people who can do the same thing.

People are paid based on how much a similarly skilled worker is willing to work for, not based on how much value they generate for a company.

Why does Economics 101 go out the window when it comes to labor supply and demand? Rising prices increase supply until supply and demand reach equilibrium. The "sustainable salary expense" is whatever the market decides it is. Remember, prices affect the demand curve too. The specter of businesses not being able to afford labor is wholly fictional. If the market price of programmers is $300k and some businesses cannot afford nurses at $300k, that doesn't mean there is anything wro

People are paid in proportion to how hard they are to hire and retain. End of story.

People are not paid based on their value. They are paid based on what the labor market drives. There’s some relationship to value, but it depends on how many people can and are willing to do the job.

One is not paid what one is worth--rather, one is paid for what the job is worth.

Pay is based on supply and demand economics, not fairness.

Sure. But it's a supply and demand problem. It's hard to find a competent programmer, so you have to pay more to attract one, or they are going to work somewhere else. But it's easy to find someone to clean the floors, so even if you offer very low wage that is going to discourage some people, there will be others who will take it. It has nothing to do with value they provide.

Workers aren't paid based on their IQ, but on supply and demand.

A kinder way to say this is "the talent entering the market is pushing wages down" or something like that. It's pretty rare that wages reflect worth. They reflect what employers have to / are willing to pay.