This framing is merely convenient. I work in a company that has workers in several countries, and an equally valid framing is "Those in poorer countries are as productive as the Bay Area folks, it is unfair they get paid less. Therefore we will pay everyone equally".
The outcome is that Bay Area folks will get paid less than their current pay, and those in India get paid more than their current pay. Because there's no way my company can afford to pay all their developers Bay Area rates.
That would be using exactly the same rationale as your comment: Equal pay for equal productivity.
I agree that workers in other countries deserve to get paid the same high wages I get paid for doing the same labor I do. If a company can afford to pay me those wages just because of the passport I carry then they can afford to pay, for instance, my Indian colleagues the same fair wage.
Let's not pretend that all companies are cash-strapped startups. The FAANGs of the world and the Fortune $x companies and the multinationals can absolutely afford to pay their global workforce uniform wages, but they choose not to because it's not maximally profitable to do so.
> Let's not pretend that all companies are cash-strapped startups. The FAANGs of the world and the Fortune $x companies and the multinationals can absolutely afford to pay their global workforce uniform wages,
I'll contest that. FAANGs are extreme outliers. I can assure you my company, while it certainly can pay everyone an extra, say, 10%, definitely cannot pay all its SW engineers Bay Area salaries. And then Non-SW engineering companies - even the top ones - rarely have that much money. Their operating expenses and capital costs are a lot more than a SW company's is.
> Those in poorer countries are as productive as the Bay Area folks, it is unfair they get paid less.
That does not really make sense. Work does not have some inherent value, its value is based on market situation, and different markets have different price equilibriums.
The outcome is that Bay Area folks will get paid less than their current pay, and those in India get paid more than their current pay. Because there's no way my company can afford to pay all their developers Bay Area rates.
That would be using exactly the same rationale as your comment: Equal pay for equal productivity.