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lol: "Global capitalism abhors a vacuum."

Why is that funny?

Shame that global capitalism doesn't abhor US dev salaries being double Aussie or European ones. :-[

Reason: place is still important to productivity. https://smile.amazon.com/Gated-City-Kindle-Single-ebook/dp/B...

I doubt it is to do with productivity. More like supply and demand.

Supply and demand aren't disconnected from productivity.

Can you explain? High demand causes employees to be more productive?

I'm going to take a wild guess and say the relationship being posited is that people are willing to pay more for more productive workers

Yes thanks but I'm not seeing any interesting analysis here beyond the one liners. Why are American employees more productive than in the countries. Better education? Work ethic?

I don't think this is right. I think the compensation difference has more to do with investor money, addressable market, culture etc.

If you go back up this thread you'll find the claim that location increases productivity. If we accept that, and if we accept that people are willing to pay more for higher productivity, well, presto, we've explained why US wages should be higher.

I don't accept the claim though. Oh nevermind!

That's fine, but you seemed confused about how the argument fit together rather than interested in arguing about the claims it's built on.

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