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Workation - nice or stupid?
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I think that's a skewed way of looking at it. I can see the appeal if your family is able to take advantage. Like if your kids are off and your spouse doesn't work (or maybe can also work remotely). That way you can enjoy some nicer weather and a different location and are able to stay longer. It's definitely not for me because like you said I'd rather just have a vacation, but I think blaming it on capitalism is a bit of an odd way of looking at what's essentially someone's lifestyle choice.
The problem is that it gets presented as a way to take time off from your job with "unlimited" vacation time while still working, which of crap.
The idea only works as a more extreme form of remote work. So, remote work where some of the time is at Grandma's.
not to say all the places that I've been to reliability of stuff like Internet, and so on has been very has been very bad in most places you would like to be.  Given you're expected to perform your normal work. This might be quite stressful.
I've had multiple times where I've told employers I was working in a new location and 100% of those times I had some sort of new caveat in regards to workspace, internet, etc. that has hindered me.