Earlier quoted context omitted.
> more than a lot of us software developers. A big question I've tried to answer in my life is whether the high pay in the software world has an intelligent economic explanation, or maybe a more sinister explanation involving false models encoded in the law.
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…
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?