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Small-Scale Question Sunday for November 20, 2022

Do you have a dumb question that you're kind of embarrassed to ask in the main thread? Is there something you're just not sure about?

This is your opportunity to ask questions. No question too simple or too silly.

Culture war topics are accepted, and proposals for a better intro post are appreciated.

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Until recently, one used to often hear people say that while software engineers had high salaries, they were actually only paid a small fraction of what they were really worth. If that were true, these mass layoffs probably wouldn't be happening, and they certainly wouldn't be causing stock prices to rise, as they did when Meta announced its layoffs.

Were the people who said software engineers were underpaid mistaken? Why did they believe this? Was it based on some naive calculation of profit per employee, ignoring the cost of capital, as is really common among people with no formal economics education?

Until recently, one used to often hear people say that while software engineers had high salaries, they were actually only paid a small fraction of what they were really worth.

Do you mean people here? Or just in people general? Can you link an example?

This is a bizarre statement to make.

Were the people who said software engineers were underpaid mistaken? Why did they believe this? Was it based on some naive calculation of profit per employee, ignoring the cost of capital, as is really common among people with no formal economics education?

If you put a gun to my head, and told me to make the best argument I can think of in favor of that statement, I'd go with something like: A lot of companies are bloated. You could fire a good chunk of the workforce, and be none the worse for it, which would imply you are overpaying the people who remain hired, and underpaying those that would remain if you got rid of the bloat.

...but of course, that doesn't necessarily mean software engineers would be disproportionately spared from being fired...

What would sales for a small startup look like?

Lets assume Startup X in making enough money to sustain 10 engineers and 1 sales person. So the 10 engineers hire an MBA. What does the MBA do?

I'm asking this because the activity of sales is completely opaque to me. I can intellectually understand that for a company of sufficient size, that work needs to be offloaded to someone who only does that. But for a small company I have a hard time wrapping my mind around it.

For a very small company CEO and sales is often the same thing.

Otherwise it's not much different from a larger corporation except account management and front line sales will be the same person, and there won't be any support functions.