This prevents engineers and programmers(and etc etc)from demanding higher compensation by essentially playing them off against each other. It's a fundamental aspect of neoclassical economics. As a business major 30 years ago I was indoctrinated into the value of this concept. It took a couple of decades for me to realize that a strong well paid middle class was far better for the economy than a weak divided middle class. The middle class is more like to spend their extra earnings than the wealthy (who already can buy most of what they want) thus stimulating the economy with consumer spending and creating more wealth for EVERYONE through the multiplier effect.