> I'm personally afraid we're going to replicate the San Francisco phenomenon over and over, to cities elsewhere in the world.
What do you mean by this? Your company paying 10 guys US market rates won't raise any city's rent prices. Rent prices are impacted by supply and demand. So you are afraid if you pay your employees San Francisco rates, their city will become San Fransisco? I don't understand the fear of some engineer in Argentina making 200k USD, wouldn't that make your company very desirable to work for over there?
All the reasons you give in the article seems like excuses to no pay people certain rate. And about paying everyone SF rates, it does raises costs, duh, but it also raises the amount and quality of talent you can reach internationally. It feels you are seeking validation on a compensation scheme that's at least equal that most corporations and bring nothing new to plate, nor is any more fair than what everyone else is doing. That's why anyone can see why Basecamp holds the moral high ground on this topic.