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Ha! That's an amusing interpretation of how supply and demand interact to find an equilibrium price/quantity point. A typical Econ 101 textbook says: high
by xapata 10y ago
Ha! That's an amusing interpretation of how supply and demand interact to find an equilibrium price/quantity point.
A typical Econ 101 textbook says:
higher demand --> higher price
higher price --> higher supply
higher supply --> lower price
lower price --> higher demand
In Econ 101 we pretend that cycle eventually reaches an equilibrium. In grad school we analyze the dynamics.
But even if we believed your demand causes supply causes zero price model, why is that unique to engineering and not business acumen? And why do programmers get paid anything, don't they work for free?
- brilliantcode 10y agoYes and if you've actually paid attention you will see that a high salary signals other workers to flood the market with a lower salary thus starting the race to the bottom :) Programmers have largely driven themselves to zero, just take a look at the workers on freelance websites and how much difficulty a native English speaking freelancer has against an army of commoditized labor. There are still six digit earning engineers and always will be but you can't look at that as a metric for the massive commoditization that has occurred with generic programming in the past 15 years.
- xapata 10y agoThere's some premium for face-to-face, but it turns out that even with remote work, price is still a good indication of quality. I'm a freelancer and fully booked, so maybe those low cost competitors aren't so competitive after all.
- xapata 10y agoAnother nonsense implication of your theory: it's better to have a low wage, so you stay under the radar and don't signal other workers to enter the market.