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Comment by m0zg | Hacker News Reader

That's exactly how the market works, in the absence of collusion. Which has been demonstrated several times among big tech behemoths [1]. That is also how it'll work this time, assuming there is no collusion, which there may still be.

https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...

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No it isn't. Without collusion the market rate is determined by the supply and demand of and for employees. This has nothing to do with the value created.

I agree with your second sentence, but disagree with your third. The demand for SWE (or any other kind of labor) is itself some (often complex) function of value created.

If you employ N software engineers and an infallible oracle told you that you’d create more value if you hired 2 more, you’d try to hire 2 more. If the oracle told you you’d create more value with 2 fewer, you’d try to get to N-2, making your demand for SWE labor a function of value created.

That may well be the case but you still have to deal with the realities of the market which doesn't give a hoot about your profitability.

Of course if you aren't making enough then you won't be able to afford to hire somebody but that has nothing to do with the market rates.

The market is nothing but the sum of all the actors in the market. If the value created by SWEs doubled (even if only for 10% of participants), the market equilibrium would be higher because of the increased demand for SWEs. If it was instead cut in half (even for only 10% of participants), the market equilibrium would be lower due to decreased demand.

I can’t see any reasonable way that the market for SWEs “has nothing to do” with the value created by them.

Sounds like supply/demand is in their favor at the moment. Some readjustment is due.

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