[vonmoltke]

That is correct. I, living in Dallas, am willing to sell my labor in Dallas for a lower price than I am willing to sell my labor in Palo Alto. Thus, a company in Palo Alto can save money by hiring me in Dallas to do the job. There is nothing inconsistent about this.

[nightski]

Price should be based on the value you are providing to your clients/employer. Not your expenses.

[bane]

If only the price of my house was based on the value I provide my employer.

[nightski]

What does this have to do with anything? The amount you paid for a house is based on it's value to you. Same as your employer and it's employees. I live in the midwest - a cheap place to live. But I charge SV rates because of the value I provide my clients. I don't have to charge "less" because I live in a cheap area. It is irrelevant.