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A delivery driver who makes 30 deliveries per hour, with senders who pay the business $2 per parcel, is bringing in $60/hour of revenue. That revenue gets split
by michaelt 3y ago
A delivery driver who makes 30 deliveries per hour, with senders who pay the business $2 per parcel, is bringing in $60/hour of revenue. That revenue gets split with other workers who collected and sorted the parcels, the fuel bill and van insurance, and the investors who own the parcel-sorting machines and vans.
A software developer that saves $0.001 per delivery across 5,000 delivery drivers who make 30 deliveries per hour saves the company $1500 per hour. That gets split with the folks who maintain the CI servers, the Kubernetes cluster, the pen testers and so on. But it's still 25x as much.
- breck 3y agoDiamond is 300x harder than gold. So it goes with ideas. The question isn't whether diamonds exist, it is whether laws artificially restrict the supply of diamonds? If, in your example, these $0.001 savings opportunities were quickly mined, would there remain such high pay for software developers? What if the pricing power comes not as much from the work being done, but from laws that restrict supply?