4 ms·
> Pay is a function of value. > A very free-market take. I'd argue that the free-market take would be that pay is a function of supply and demand, not value.
by lukas099 4y ago
> Pay is a function of value.
> A very free-market take.
I'd argue that the free-market take would be that pay is a function of supply and demand, not value. As an example, musicians provide a ton of value, but the free market dictates that they aren't paid a lot, because people who would like to make music for a living are a dime a dozen.
- sweezyjeezy 4y agoFair - I personally don't think either view withstands scrutiny in the HUGE difference in salary between US workers and the rest of the world.
- lukas099 4y agoCan you help me understand how you think that ties into the above point?
- sweezyjeezy 4y agoGiven that US and EU wages have about a 3-5x disparity, then you might think a) the US worker is worth that premium, and will fulfil 3-5x of your demand for work as the EU worker, b) you have a need towards hiring in the US (certainly understand this in some cases). Or... c) there is a disparity between supply / demand and salaries - why hire in the US if there is so much cheap supply elsewhere?
- hnfong 4y agoMonopoly of US firms in the tech industry, their (possibly irrational) reluctance to go remote (until COVID at least), and US work-visa (H1B) quota restrictions. Now that chasing growth has gone out of fashion and cutting costs is on the table, I suspect companies might lean more towards hiring cheaper, non-US workforce after the layoffs have settled down.
- lukas099 4y agoThis just means that there is more demand for US workers. I'm pretty sure businesses aren't paying them that much more out of charity.