It makes him the kind of low-level or middle-manager that certain companies love. His purpose isn't to support his subordinate employees in their work, it's to make sure the company pays as little as possible for as much work as possible, and to act as the first line of defense against employees who aren't "100% on board".

Clearly he thinks that "asking for a raise" puts an employee in the "not 100% on board" category. That makes him terrible at reasoning, and perhaps poor at empathy, and strongly indicates he's not the kind of person an intelligent developer who desires to be treated like a human being should ever have to work for, but I'm not sure it makes him a bad manager per se. He might manage very well in other respects.

maybe, but when an employee asks for a raise, or say they are quitting does that make them a horrible employee. so many people think that work is some big philanthropic organization set up to serve their needs.

"when an employee asks for a raise, or say they are quitting does that make them a horrible employee"

No it doesn't.

You seem think employees are there just to serve you for the lowest bid and if an employee is coming to you with a better offer then, you aren't paying them "market rate".