Why is pay so low?

Nope, I don't predict pay will increase to reflect current COL at all. Nursing pay has been stagnant for what seems like forever.  Typically the only way to move up the pay scale is to switch jobs every few years since employers seem to have a higher pay rate for new hires compared to the raises offered to longer-term staff to get those new staff in the door.  Of course, if you go that route for more money, you are likely trading off the  PTO/sick time that you accrued and never could use completely.

COVID didn't even change that. The only nurses making good money during that staffing crisis were travelers.  For regular staff there were maybe bonuses, maybe not depending on the employer.