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You make a good point of course -- my issue is that this amortization has become totally divorced from use. For example, a taxi driver also needs to amortize th
by new2628 7y ago
You make a good point of course -- my issue is that this amortization has become totally divorced from use.
For example, a taxi driver also needs to amortize the upfront cost of their car, but the more they drive, the more the car wears down, so it is all predictable, and somehow feels "fair".
With digital goods, you may sell it twice, or a billion times, what you earn is independent of how much cost you sunk into it (apart from hosting and other infrastructure as you mention) -- which explains the runaway successes of our times, but it's just something I am unwilling to participate in :)
- JoeAltmaier 7y agoYes it seems like new rules are needed for synthetic businesses of this sort. I've argued elsewhere on HN, that the reward for building an automated system should be, pay for building the system. In America at least, we consider the entire lifetime output of said system to belong to the builder. That is unsustainable. Imagine a future where everything is automated. There will be no need for workers, and not much further development. The economy becomes a static owner-vs-unemployed deal, and how can that survive?
- vharuck 7y agoWouldn't that discourage automation? By which I mean, wouldn't the economy optimize for busy work instead of producing more value for less effort?
- JoeAltmaier 7y agoReferring to reassignment of automated machine output? I don't see this slowing automation much. It makes for a simpler, more reliable process across the business. Why deal with hiring people when automation solves it forever? And even if some folks do decide to go the 'boutique' route and hand-make something, there is always another person who will go the automated route and cut their prices by 90%. Free market after all. It will be upsetting for sure. Lots of entrenched interests in renting automation at high rates. Maybe have to do it in a phased approach - VAT or some such?