People seem really set on reading this as "hire developers from a 3rd world country". But no one said that was the only option.
Go hire some French or Belgian or Danish developers or New Zealand developers, you'll find the salaries are nothing like Bay Area salaries...
And few of them would consider the US as having a higher standard of living.
If you're just trying to get good candidates for salaries below the Bay area rates, basically pick any 2nd tier city in the US. It may still be more expensive than France/Germany etc, but there's no language barrier, closer time zones, similar holidays, better labor laws (for the employer), etc. In my personal opinion the cost difference doesn't make up for those hurdles until you get much cheaper salaries like India, China, Brazil, etc. Obviously individual circumstances apply.
Go hire some French or Belgian or Danish developers or New Zealand developers, you'll find the salaries are nothing like Bay Area salaries... And few of them would consider the US as having a higher standard of living.