Wages are set by a baseline of the cost of living. Young single workers might tolerate having essentially no savings for a few years but eventually they will find a better job or a cheaper cost of living area.
This has a direct impact on what kinds of businesses can operate in high cost of living areas. Businesses need high enough volume or margin to pay the rent and wages of their workers. So far outsourcing has localized the negative impacts of failing low-margin businesses in wealthy nations. But that's also coming into question with national security concerns.
This has a direct impact on what kinds of businesses can operate in high cost of living areas. Businesses need high enough volume or margin to pay the rent and wages of their workers. So far outsourcing has localized the negative impacts of failing low-margin businesses in wealthy nations. But that's also coming into question with national security concerns.