Re:From idea to replacing full-time salary in 4 months
by Androsynth on Monday April 16, 2012 @02:02PM
(#3848513)
No he didn't, he's hired maids who would otherwise be maids for someone else.
But now the company they came from has to hire 8 new maids. If his business model is superior, he may eventually drive the old company out of business and employ at least as many maids as they did. Even if he only employed the same amount as the old company, he is providing more value to his customers, either through increased efficiency or lower costs. So even in the case of there being no new jobs created, creative destruction has again moved our economy forward.
Judging by how fast his first maid came to his company, I doubt he pays them less (I didn't see him mention this).
Re:From idea to replacing full-time salary in 4 months
by gnaritas on Monday April 16, 2012 @03:39PM
(#3848963)
Of course he doesn't pay them less, he's cheating on taxes to pay them more by 1099'ing them wrongly, they are employees and he'll have to pay them less once he starts doing it right thus losing his current advantage in the market.
No he didn't, he's hired maids who would otherwise be maids for someone else.
> The 8 people that work for him are better off than they were before
Because he's not doing his taxes right and paying them more, he'll get caught and eventually have to pay them less.
> However it sounds like the IRS will eventually come in and destroy those 8 jobs, all in the name of 'protecting the workers'.
As they should. What's he's doing is unfair to other maids who work for legit companies and are paying taxes correctly. It's also unfair to his competition who plays by the rules he's ignoring. 1099'ing them is cheating, they are employees.