> What good is it for the company to pay out more money ever? Prices are set by supply and demand. If I need someone in San Francisco to do a certain kind of w

> What good is it for the company to pay out more money ever? Prices are set by supply and demand. If I need someone in San Francisco to do a certain kind of work, there's a limited pool of people and they aren't going to show up unless I pay a certain amount. > Why pay people to live in expensive neighborhoods at all? I don't care where people live, they care. They could save money by moving out to nowhere but then have a terrible commute. Again, that's assuming I need them onsite. If it turns out that I don't need people onsite at all, I can hire from anywhere and the pool of people gets much larger. Since many of these people don't have huge expenses because they don't live in expensive cities, they'd do the same job for less. I save money, they earn money, it's win-win. It really only comes down to how much value you put on people being onsite.