Remote companies frame the comp problem as: we want to be fair to our employees such that our dev in SF doesn't feel "poor" compared to our devs in middle America.

My opinion is living in an expensive city is a life choice. Just like choosing to purchase a BMW or a new home. You should not be paid more because you own a BMW and your co-worker drives a 10 yr old Toyota.

I have been told no by several companies when they found out I live in abroad and make "SF money", because it wouldn't be fair to their existing remote staff despite having the budget if I lived in SF.