In theory, every business will try to extract as much value from every employee as possible for the least amount of cost. This makes sense and is how capitalis

In theory, every business will try to extract as much value from every employee as possible for the least amount of cost. This makes sense and is how capitalism works. However, in bay area software companies, I see that most companies would rather extract more value from every employee, rather than cut employee costs by not paying higher salaries. When negotiating for a salary, for example, if you overbid too aggressively for your salary, often the result is that the company wants you even more, especially if you have a recruiter with a fat commission at stake! This isn't too surprising, considering that they're located in the bay area (as opposed to somewhere half the labor cost - like Austin). I know it's not possible for every business model, but If companies were serious about cutting costs, they'd start moving to cheaper areas in the US or even start outsourcing more to India and China ~ with considerable savings. Bay area companies, usually prioritize growth, above cutting costs, though this could change in the future as industries mature.