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While I'm sure many people will not understand, she is right in a way ...

To understand why there is a basic question that you can answer, why should someone who can do the same job as you can (and is just as good as you are) get paid a different amount for doing it just because of the country they live in?

Most of the answers people will come up with are essentially circular in nature, for example that the costs of living in one part of the world are higher; but higher costs of living are often driven by increased wages driving up the cost in a region. Essentially, if you doubled the wages everyone in a city earned today you would soon see rents and property values in the area double because the same number of people would be fighting for the same amount of property but would be immediately willing to pay twice as much for it.

 

Now, where I disagree with her is in how this will likely come about ... As the economies of China and India continue to develop it is likely that more and more consumer goods will be demanded within these countries, and since the only countries able to manufacture goods cheap enough for the Chineese and Indian market are China and India, a feedback loop will be created that rapidly grows these economies. Over time the standard of living in China and India will match that of western developed nations, and there will be more parity in the standard of living of people doing similar jobs througout the world.