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> The general principle is that an employee has to cost less than the money they bring in. That's not strictly true. If you have two programmers, one produces
by jurassic 13y ago
> The general principle is that an employee has to cost less than the money they bring in.
That's not strictly true. If you have two programmers, one produces $80 in value per hour and the other only $40 in value per hour you can still afford to pay both $60/hr each. This happens all the time because worker productivity is uneven and some jobs are more important/impactful than others. The requirement that revenue exceed costs is only true in aggregate, so the effect of increasing low-wage employee cost is to reduce profits.