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Cold calling is not necessary, a worker has networks of his own. Given a situation where the worker is trying to improve his condition by getting fairer compensation for his work, and is forced to renounce by a localised cartel of employers exploiting his conditions (i.e. that he can't leave the area), I'd say that's psychological violence alright... but I guess we'll never agree on the exact degree of intensity of such force.
>At least with startups in the valley, they most certainly don't [own original capital].
We are talking about Apple, Intel, Google etc; they are not startups anymore. Startups are not the ones who colluded, they already cannot pay market wages in most cases. It's the companies who could and should pay full wages, the ones who tried to scrimp on salaries.
I agree that the fundamental asymmetry in labor relationship is mitigated by factors such as business size and investor's own history, but it's still there (how often do we get stories on HN about startup workers being screwed out of rewards for successful business outcomes), and anyway these factors simply do not apply to Google, Apple et al.
>Assuming there is demand from other employers
That's a big assumption. It might be true for Silicon Valley as of 2014, but in most years and in most areas that's simply not the case.
> Refusing to consider the fundamental imbalance of labor relationships is disingenuous at best. >> Refusing to consider the full impact of distortions on labor relationships is disingenuous at best.
I agree, it's a complex matter, but you cannot take as fundamental principles for economic doctrine some localised, exceptional and very limited situation: you take the common scenario and build principles from it, then you tweak it for outliers. "Engineers in Silicon Valley" is the outlier, not the common scenario, and people trying to use that as the basis for "new" theories are, in most cases, just rehashing old excuses for exploiting the workforce.