wow, $33,000 15 years ago? That really puts a spin on me making $36,000 6 months ago, working in 4 languages and 2 platforms to build a really complicated SPA web app and mac flash content player system. Glad I got out of that job!
From my own personal experience, things weren't bad in the late 90s up to the point of the .com crash. Starting salaries in valley were $45k-$55k. There was a lot of competition for strong candidates, and working conditions were pretty decent. I do commend Spolsky for providing good working conditions in a market like NYC where the current trend seems to be to jam as many people in a space as possible.
as others pointed out, 2000 is when he founded Fog Creek, not when he started programming. He was in MS when Excel was still competing against Lotus, so that salary is likely from the '90s.