3 ms·

That doesn’t seem related to this discussion though. Whether a given business can afford to pay it or not is a reflection of customer demand for that product or

by mlthoughts2018 6y ago

That doesn’t seem related to this discussion though. Whether a given business can afford to pay it or not is a reflection of customer demand for that product or service combined with good or bad executive leadership. If the competitive wage rises but a company can’t afford it, that’s not the worker’s problem to accept a bad wage to help the company. That’s the company’s problem to hire better leadership or cut executive pay in favor of employee pay or get acquired / raise funding or go out of business. None of that changes the reality of competitive wages. At the root it sounds like your question is more about aggregate market allocation of labor. But why should workers accept inefficient allocation at worse wages? That just seems like an aggregate market expression of “these businesses are unwanted by society” - the same happens to 90% of startups all the time.

deleted 6y ago
[deleted]
ubercow13 6y ago
>If the competitive wage rises That's begging the question. The competitive wage will not rise to FAANG levels just because some FAANG jobs are available in every city. It's the worker's problem if they can't get the that FAANG job anyway, because the number of FAANG jobs hasn't changes and instead they've just been diluted over 100x as many cities and a much larger talent pool. Affordability is relevant because it's one aspect affecting how much the competitive wage will rise.
- mlthoughts2018 6y ago
  I don’t agree. There are way, way more jobs than qualified candidates for San Francisco & New York level of salaried jobs across a bunch of major cities, and as the candidate pool increases, these companies are likely to just increase demand for more headcount. My forecast is that prior to the pandemic there were X “FAANG-paying jobs” across ~5 big cities in the US. After wider remote work normalizes in the next two years, there will be 10X that number of jobs and the average wage will likely only go up. There will be room for all the headcount there currently is across the ~5 largest tech hubs, plus nine times that amount in additional, new headcount. People from all kinds of regions of the US and the world will have much greater chances at these jobs. And it will create spillover effects where lesser tier employers have to raise wages to compete for the remaining candidate pool and so on.
  - ubercow13 6y ago
    Well I hope you're right. We have FAANG in London already and many tech jobs, and salaries haven't risen to FAANG levels. There still seems to be a bimodal distribution between big tech, high finance and some contractors, and everyone else. Of course it's a different country altogether and there are likely many different reasons for that.

deleted 6y ago

[deleted]

ubercow13 6y ago

>If the competitive wage rises That's begging the question. The competitive wage will not rise to FAANG levels just because some FAANG jobs are available in every city. It's the worker's problem if they can't get the that FAANG job anyway, because the number of FAANG jobs hasn't changes and instead they've just been diluted over 100x as many cities and a much larger talent pool. Affordability is relevant because it's one aspect affecting how much the competitive wage will rise.

mlthoughts2018 6y ago
I don’t agree. There are way, way more jobs than qualified candidates for San Francisco & New York level of salaried jobs across a bunch of major cities, and as the candidate pool increases, these companies are likely to just increase demand for more headcount. My forecast is that prior to the pandemic there were X “FAANG-paying jobs” across ~5 big cities in the US. After wider remote work normalizes in the next two years, there will be 10X that number of jobs and the average wage will likely only go up. There will be room for all the headcount there currently is across the ~5 largest tech hubs, plus nine times that amount in additional, new headcount. People from all kinds of regions of the US and the world will have much greater chances at these jobs. And it will create spillover effects where lesser tier employers have to raise wages to compete for the remaining candidate pool and so on.
- ubercow13 6y ago
  Well I hope you're right. We have FAANG in London already and many tech jobs, and salaries haven't risen to FAANG levels. There still seems to be a bimodal distribution between big tech, high finance and some contractors, and everyone else. Of course it's a different country altogether and there are likely many different reasons for that.