[rkomorn]

There's more to it than just "inflated salaries with inflated prices".

I took a 70% pay cut moving from Silicon Valley back to Europe. Sure, my monthly expenses were also about 70% less, and I was able to save roughly the same relative proportion of money.

The main difference is that, in absolute terms, what I was saving in the US before I moved amounted to more than what I was taking home after tax in Europe, let alone saving. That buying power went much farther (for a variety of reasons). Whether it was electronics, trips, a new car, etc, I could afford way more luxury there, with much less impact to my bottom line.

I have no regrets. My perceived quality of life is much better now.