Their labour can absolutely be that valuable due to how many customers you are effecting with a single hour of work - it's sort of the same principle as athletic stars - paying outrageous salaries to athletes is probably the least bad way to do things (it's certainly better than the companies just pocketing lots of cash).
That said, I think this is only achievable because of how relatively young and greenfield software is - the industry hasn't existed for more than a eighty years in any real sense (and arguably didn't really begin until things moved from academic to commercial in the seventies or so) and thus a lot of software can add massive value to society while doing relatively simple things. I think in a few hundred years all the low hanging fruit will be gone and software development will be extremely different from these wild-west days but right now yea - the value you can produce for a business can absolutely justify pretty ridiculous salaries.
I think the important counter point for humility here is that those folks aren't particularly special, maybe a 700k architect is a literal genius at the peak of their career, but there are other folks out there that are just as creative and making 80k. Maybe we just need to think of the strange wage imbalance in development as being as fickle and arbitrary as celebrity - could that actor at the local playhouse have been the next Jennifer Lawrence if only they'd gotten cast for the role? Quite possibly, but luck wasn't on their side and passed them over.
I'd say that people that command such high salaries are certainly worth it (in the cases I've seen at least) but they have also benefited from some fantastic luck in their career progression - they could've been someone else and be earning far less for the same set of skills.
It’s not about skills, it’s about the value those skills provide.
If you write a webapp to solve a $5000/day problem, that’s worth $X. If your company sells that to 10 companies, your work is worth 10X. But if it’s sold to 10000, wow.
Think of your work in terms of value provided to the buyer, not in terms of cost to yourself. Thus you unlock career potential
If the webapp can solve $5000/day problem but there is literally millions of people that can do this, you are certainly not getting a share of that. Somebody else is maybe going to be rewarded for spotting an opportunity but the most you get is a "market rate".
The only way you can get paid proportionally is if you are literally the only one that can solve the problem and you know it and they know you know it.
I think this is where society comes into play - Ideally I'd like to see the company expend a large amount of that value into wages with only a proportion of that going to developers and the rest being eaten off as taxes that can be put toward social programs to help the less well off.
We are in agreement. But if companies pay just market salary with no regard to value created, then they are not expending a large amount of value on wages :)
I absolutely agree and that's where the price differential is coming in, but it causes some perverse effects to the wage market. Is the work of the person solving that 5k/day problem that's then sold to ten clients worth ten times as much as the work of the person who's work is only sold to one client?
I think it's important to recognize the semi-arbitrary source of where this value is coming from and understand that while employees impacting a lot of customers are indeed creating a lot of value the work they are doing isn't significantly different from the work made by folks with more modest salaries.
Basically, at the core, I think there's a significant ethical question here and I would highlight the relative infancy of the industry. It's likely that in a few hundred years all this incredible value creation will be highly commoditized and that innovative development will be relegated to academic pursuits that companies only adopt and bring to market after a lot of investigation and research.
Uh hrm - as another parallel you might compare this to speed running. Right now we can do relatively simple things to dramatically create value (time saved off the run) but as time goes on and the run gets more "perfected" then the ability to shave time off the run (or create value for the business) will require a lot more investment of effort. I'm not certain if this will happen since everything in how development works points to this being a really hard state of the industry to accomplish - but looking at economic trends it feels inevitable that eventually it will be more profitable to, for instance, produce a cheaper better whatsapp then being the first market entrent into the coveted Deciduous Tree Vlog Platform market.
Question then becomes: can YOU sell that work to 10,000? and how many can make what is sold?
I worked at a startup, became amazed at the sales crew’s ability to find buyers. I could make the app (and Co. could find few willing & capable to), but in no way could find anyone to fork over that much for it.
The problem I have with that is - where is the team? It probably not a single person writing that app. It's likely a whole team of people.
In non-tech companies, IT is seen as a cost. Half the time your contribution is just saving the company from hiring x number of people to do the work manually.
You can start by taking value provided and dividing by number of people involved. I can almost promise the number you get is higher than people’s existing salary. Even after accounting for overhead.
That said, I think this is only achievable because of how relatively young and greenfield software is - the industry hasn't existed for more than a eighty years in any real sense (and arguably didn't really begin until things moved from academic to commercial in the seventies or so) and thus a lot of software can add massive value to society while doing relatively simple things. I think in a few hundred years all the low hanging fruit will be gone and software development will be extremely different from these wild-west days but right now yea - the value you can produce for a business can absolutely justify pretty ridiculous salaries.
I think the important counter point for humility here is that those folks aren't particularly special, maybe a 700k architect is a literal genius at the peak of their career, but there are other folks out there that are just as creative and making 80k. Maybe we just need to think of the strange wage imbalance in development as being as fickle and arbitrary as celebrity - could that actor at the local playhouse have been the next Jennifer Lawrence if only they'd gotten cast for the role? Quite possibly, but luck wasn't on their side and passed them over.
I'd say that people that command such high salaries are certainly worth it (in the cases I've seen at least) but they have also benefited from some fantastic luck in their career progression - they could've been someone else and be earning far less for the same set of skills.