Trying to recruit top talent is expensive. I agree, pay more and you will get the talent, but you won't have a sustainable business.
Tech pays 300-600k total compensation, so if the money is there, then they will pay.
But non software businesses can't pay that and sustain a profitability business. So talent becomes very scarce.
I've seen first hand how hard it is to recruit top talent in a niche engineering discipline, and a few times it came down to candidates wanting more than the business could afford.
SpaceX gets all the top young talent they want, but they have to pay for experienced talent. And they have a bad rap for work life balance, someone with 10-15 years experience and a family wants more balance than SpaceX can offer and it's hard for SpaceX to recruit and keep experienced talent without paying a lot for it. And yeah SpaceX does have some top guys with loads of experience, but there also have more need than they can fill.
SpaceX also has to keep to American workers. Yes, Elon Musk 100% would hire cheaper foreign engineers if he could. He is known to treat employees poorly, so it shouldn't come as a surprise.