3 ms·
> 1. Why doesn't every company try to hire contractors then? Making firing employees expensive beyond reason, always seems to significantly increase unemployme
by eganist 4y ago
> 1. Why doesn't every company try to hire contractors then? Making firing employees expensive beyond reason, always seems to significantly increase unemployment rate (Eg France)/drastically increase informal employment (Japan)
This doesn't make firing expensive beyond reason, it makes it only modestly cheaper as opposed to absurdly cheap. Napkin maths:
* Per annum 200,000 spent per employee (100,000 plus benefits, perks, infrastructure, etc.)
* Per annum 25,000 spent per AI agent (10,000 per license plus infrastructure)
* Without tax, 175,000 savings.
* With tax of 70,000 per displaced employee (approximate 2x federal withholding of a Single employee in the US), 105,000 savings to use AI.
This isn't rigorous math, but it should help get the point across.
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Now, if you just make it a salary conversation:
* 100,000 per employee
* 10,000 per license
* 90,000 savings based on salary v. license alone
* 20,000 savings after that tax.
Either way, AI comes ahead. This just makes sure some of that savings goes into the common welfare rather than upstream to investor pockets.