What this leads to is a lot of dumb decisions. One example in this case is that, to someone who's never written a line of code, a 25 year-old developer is the same as a 50 year-old developer, but at half the cost and without the hassles of things like kids to take care of. You need to have a decent understanding of the work developers do, in order to understand the value the 50 year-old developer brings and why paying him or her 2 or 3x the 25 year-old is actually a bargain.