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> But what is the exact mechanism that is making it so finance and tech are among the only fields where labor compensation is commensurate with leveraged value-
by sidlls 9y ago
> But what is the exact mechanism that is making it so finance and tech are among the only fields where labor compensation is commensurate with leveraged value-add?
What makes you think labor compensation in tech is commensurate with the leveraged value-add? I think you're generalizing too broadly.
The vast majority of tech workers, even at the "Big Names", are not anywhere near a position where they can "rest and vest". Also their compensation per unit of added value really isn't comparable to their similarly skilled/socially connected peers in finance. A "rest and vest" Google Engineer whose blood, sweat, and tears made Google a multi-billion dollar product might make in the very low 7 figures per year, while a moderately skilled investment banker earning his bank tens of millions of dollars in a year might make a similar salary.
- pixelmonkey 9y agoYou are right that compensation is uneven in every industry. You are also right I am generalizing a bit too much. My main point, though, is more that in tech/finance it is very possible for compensation to be (largely) commensurate with leveraged value-add. Whereas in professions like teaching and firefighting, it is simply impossible.
- user5994461 9y agoYou can teach and firefight anywhere on the planet. You can only work for the GAFA in a couple of cities, that happen to be the most expensive in the world.
- sidlls 9y agoThe parent's point, I think, is that teachers and firefighters (in this country) are rarely (effectively never) compensated according to the value they provide. I happen to agree with that point.
- user5994461 9y agoEven in the US. I doubt that's a general truth. The 4 million American developers outside of the GAFA and HN circle have nothing outstanding. By the way, in the country I come from, they are both compensated more or equally than developers.
- sidlls 9y agoGAFA?
- wastedhours 9y agoYeah, compensation matches the number of people you reach in the moment, rather than the impact of that reach. Those who reach millions of people (rockstars, football players, the person who designed the curve on a button at a hot tech company, vacuous reality TV stars etc...) will earn relative to the audience size at the moment of earning rather than the value-add-per-person. Teachers and firefighters have immense value on a very small number of (often unappreciative) people directly. The outcomes from that value might be immeasurable, but at the point of delivery, society doesn't value it highly enough for heft compensation at present.