Basically if you can pay someone for an hour of work with what would normally cost you 15 minutes to earn, it's a candidate for outsourcing.

Reply to this note

Please Login to reply.

Discussion

Yeah, I guess the practical question is whether to include taxes and your expenses in that calculation?

Let's say your income is 100k, you take home free floating at most 25k... so outsourcing is worth to somewhere around $3/hr.

And that’s how price impacts the division of labour to bring more interest to under-resourced areas of the economy. Part of the invisible hand.

But certification, licensing and apprenticeships can distort this - resulting in a situation where even if something is not a candidate for outsourcing based on cost, even if you can invest the time to develop the skill to do it, you may be prohibited by actual law implemented by the State.