I'm curious - what about the "illusions" of a shortage of developers would drive wages down? Basic laws of supply and demand would suggest a trend in the opposite direction.
Companies complain there is a shortage. Everybody rushes to fill the demand, including students choosing a CS major over something else. Companies are then over-flooded with supply and get to pick what they want. It's a common tactic in capitalism.
If there really was a shortage, CS students would be recruited straight out of college. Instead, every software company wants years of experience for entry-level jobs. If they afford to put up ridiculous job requirements, they don't really need you. They simply want someone better for less money.
"If there really was a shortage, CS students would be recruited straight out of college. Instead, every software company wants years of experience for entry-level jobs. If they afford to put up ridiculous job requirements, they don't really need you. They simply want someone better for less money."
This assumes that CS students straight out of college are a (presumably imperfect) substitute for an experienced programmer. That very well might be the case, but it should at least be made explicit and ideally supported.
If there really was a shortage, CS students would be recruited straight out of college. Instead, every software company wants years of experience for entry-level jobs. If they afford to put up ridiculous job requirements, they don't really need you. They simply want someone better for less money.