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If someone pays you $100K, then your value is, by definition, $100K, because the value is what someone is willing to pay. 100% of that value, by the way, is cr
by ImPostingOnHN 6y ago
If someone pays you $100K, then your value is, by definition, $100K, because the value is what someone is willing to pay. 100% of that value, by the way, is created by you developing from a $0K-salary baby into a $100K-salary adult. So that's 100K value created by the employee (and the people in their life to an immeasurable degree).
If your work is worth $120K to your employer, the difference, like you said, is $20K of value created by the employee.
All this to importantly note that the employment agreement didn't create $120K of value -- the employee did, for the employer.
If the employer takes 2 of you, each individually providing $120,000 of value to their customers, and, through managing you as a team, manages to extract $250,000 from a customer, then the employer has finally created value -- specifically, $10,000 worth.
- Joker_vD 6y agoIt's a interesting approach to accounting, except for the fact that the manager is not paid $10k when employers are paid $120k each. And anyway, that's not the manager who produced that value: it's the sales team, without them the product is literally worthless. So what is manager paid for, again? And even more interesting question now would be "what are shareholders are paid for anyway, after they've been repaid the initial investment with the interest on top?"
- pnutjam 6y agosales team creating value... hilarious... LOL
- Joker_vD 6y agoI tried to pull reducto ad absurdum as hard as I could; judging by the score on that comment, I've succeeded.
- ImPostingOnHN 6y agoThat is definitely an interesting way of interpreting what I said