>I've managed P&L at multiple companies. Salaries are inevitably influenced by cash flow projections and revenues, and are absolutely aligned in multiple dimensions to revenues.
How mature were those companies? Did they have investors willing to accept extended periods of time without profit like many VC and Wall Street investors have come to accept from many tech companies? Did increases in cash flow or revenue lead to across the board raises? Or did cash flow and revenue exist purely as a cap on salaries?
>No, they're going to pay whatever their margins can tolerate while competing for labor. If Google can manage the salaries they have with staff living mostly in high cost-of-living cities, so they can also support those margins with staff living anywhere else in the world.
Yes, Google can support those margins, but why would they? Why would Google pay a developer a dollar more than they need to? If they can get the same work out of employees in low cost of living areas, they will expect to pay all employees low cost of living salaries.
>Why is it only capitalism when the company is greedy?
I'm not sure what you mean by this. There was no positive value judgement on my use of the word "capitalism". I was not praising companies for this behavior. I was making a value neutral observation on their behavior. Don't take my observation of behavior as and endorsement of that behavior.