Company installs productivity tracking software that screenshots employees computers every 10 minutes, claims they can't afford yearly raises anymore: 'I've been at this place for 4 years and every year its the same story.'

It's rough that she can't call their bluff. 

It can be difficult to tell if the higher-ups at your company are being 100% honest with you. You're not in the room when they discuss the precise figures for operational costs, revenue, and profit. You only know what they tell you, and what they tell the public, but sometimes those narratives are at odds with each other. Sometimes they'll tell the world that they're a world-class company that is doing better than ever, but they'll tell you that there's absolutely no way that they can afford to pay you any more, because the success is allegedly not enough to sustain a pay increase. Maybe it's true that they can't afford to give raises and keep the lights on, but there are always signs that this isn't the case.

If a company keeps hiring a bunch of new employees, they probably have some money to spare. If they're getting rid of a lot of employees, they probably don't. Employees aren't stupid: they can tell when their bosses are lying through their teeth about the company not having enough money to give them a raise. It would be preferable for employers to simply say, "We don't think you deserve a raise this year," but companies obviously won't do that because it would hurt people's feelings. Professionalism is all about lying, but in order for it to be effective, you have to tell a believable lie.