CabinetDear3035 t1_jczi1r3 wrote on March 20, 2023 at 7:08 PM

What can be done with companies that eliminate people ?

mjrossman OP t1_jcziz7d wrote on March 20, 2023 at 7:14 PM

the sober outlook is that whatever commodity the company offers is going to produce a slimmer margin over time, especially if it's digital. on the other hand, I'm pretty confident that most firms (especially sole proprietorshisps) are more capable of affording their own optimization process. for any given employee, the important question is whether they understand the practice of what they're paid for, relative to the labor market. the followup is whether they are industrious enough to form their own firm and compete.

Inventi t1_jd06049 wrote on March 20, 2023 at 9:43 PM

That depends entirely on market dominance.

mjrossman OP t1_jd09x5h wrote on March 20, 2023 at 10:09 PM

so long as the product is not a commodity. if the market errs towards an oligopoly, of course those firms have pricing power. that is definitely the present circumstance, however things like LLaMa, StableDiffusion, and Alpaca are demonstrating AI (the orchestrating element) can be a commodity. in other words, if your labor is so specialized that you control the pricing power, then it's further in your self-interest to be self-employed over time. if the firm employing you provides something that compels you to surrender your pricing power, then that is a bargaining cost that will likely shrink over time as it gets commodified.

CabinetDear3035 t1_jd11v33 wrote on March 21, 2023 at 1:29 AM

Why would people support companies that eliminate people ?

mjrossman OP t1_jd167w5 wrote on March 21, 2023 at 2:01 AM

rational market actors recognize their own worth. either they're underpaid by the company and should become independent, or they're overpaid and are insulated from competing in the open market. in either case, the tragedy of the commons is that all firms compete to the extent that they can dispose of their profit margin, and ultimately the end consumer benefits from commodification.

OTOH, with respect to artisanal goods & services, it makes further sense for employees to not be commodified as labor by a larger firm if they're artisans. they should compete in their niche market. but that is not an acceptance that the larger public market should be captive to a firm, even if that firm sets a less efficient, higher price to offset the employment of commodified labor.