The tech market makes progress through booms and busts, hype cycles, and bankruptcies. The government can't afford that, and it should not.
The taxpayers deserve the most efficient use of their tax dollars, and that's not through in-house tech.
The best you can probably get is public support for open source companies and open source products.
But as a taxpayer, I’d be very open to those salaries IF government IT was overhauled and run like a competent and agile tech startup, unencumbered by politics and red tape - at least to bootstrap some initital momentum.
Longer term, we need something like a “Tech Corps”, akin to a branch of the military, where new recruits are trained in tech bootcamps, and then deployed to one of the thousands of government departments that require resources for their projects/processes. Ideally, these roles should be viewed as an honorable monastic vocation, not a bureaucratic or political career.
2. I consider myself a limited government proponent, but even if government were cut down to the bone, there is still a need for the government to maintain in-house software. Just imagine the internal software that the military and the IRS has, for example. The Library of Congress probably has very interesting software for helping manage its collection. It is conceivable for the federal government to build and maintain office software to aid its operations.
How many developers/PMs/etc. are working on Office software at Microsoft? With 20 you might be several orders of magnitude off. Why would a government project be leaner?
What is more, at least where I live there is not even a salary structure allowing to pay developers those figures, while managers several levels above them would earn less. Hierarchy is everything in government organizations.