In a way it seems like SWE jobs in tech hubs are subsidized by VCs. We can see it as some huge redistribution of wealth.

Yep, this is what happens when your "growth" metric is employee headcount, under the naïve assumption that more people is a proxy for more work getting done is a proxy for revenue. This may make more sense for a sales-focused organization, less so for marketing or technology driven organization.

Reminds me of my dotcom boom/bust experience of the late nineties where the dotcom was posting monthly "hiring targets" and celebrating that they met them. They were so screwed and tanked badly right after March 2000.