This gets spouted all the time on HN, and I find it rarely to be true, or at least a gross oversimplification.
In my experience what usually happens is a programmer's "worth" is hugely dependent on the scale of the organization, moreso than nearly every other individual contributor-level role, which means that smaller orgs have an extremely difficult time competing with larger orgs.
For example, suppose at some company there is a business process that generates $1 billion in annual revenue, and a programmer has implemented something that can increase that by, say, .2%. So the programmer's "worth" in that situation is 2 million dollars.
A much smaller company only does $10 million in annual revenue, so the commensurate .2% improvement is only worth 20k.
This is a gross oversimplification, of course, but it really gets to the heart of way the FAANGS can pay such huge salaries and suck up a lot of the best talent. It's not that all the other companies are being stingy, it's just that in many cases they can't pay a programmer anywhere near what a FAANG can because that programmer just can't generate that much business value at a smaller company.