That seems a pretty bold claim to make that doubling salaries would only raise supply by 5%. During the tech bubble people were coming out of every nook and cranny imaginable.
No, what caused the crash was that there was no bigger fool to sell overvalued stock to. Engineers coming out of the woodwork were simply responding to the economic incentives that existed for them (and that's the problem with bubbles, it's that incentives get distorted).
