Is this actually a problem, or even particularly surprising? Remote positions provide massive non-monetary benefits to employees (flexibility in general, but particularly: you can live wherever you want, including on the road, with no commute, in low cost-of-living areas, closer to other things you value, etc). These benefits attract more applicants, which alters the supply/demand balance, with predictable effect on market salary. Remote work should be understood as a win-win, where the employee gets significant quality-of-life and maybe reduced cost of living in exchange for somewhat reduced salary, and the employer gets significantly reduced costs (directly in terms of salary and office space, indirectly in terms of easier recruitment) in exchange for (maybe) somewhat harder management. If you don't like the employee-side trade-off, tough to be you, because you're competing against a lot of people who do.
> when it's remote you compete with people in India, China
It's not clear that this is really true. It's relatively easy to run a distributed organization that has a common native language, legal system, and continent. Language barriers, massive timezone discrepancies, and ..challenging international legal systems make successful management much harder. In practice, it seems that many companies are unwilling to take on those costs and risks.