You’ll need to explain why all the overseas contractors are getting paid so much less, in that case.

If you’re talking about India / China working for US firms, it’s supply and demand again. Indian and Chinese contractors provide a certain kind of value, while domestic US direct employees provide a different kind of value - as you say: ease of communication, time zone, etc. The Indians and Chinese have very high supply numbers, if they ask for more salary they’ll just be passed over for equivalent people who will do it for less. US software engineers with decades of experience are in shorter supply, and higher demand by many US firms, so…

Of course there’s also a huge amount of inertia in the system, which I believe is a very good thing for stability.

But then the boom busted and those salaries deflated down to the $50k range.

And that was a very uneven thing, but yes: starting salaries on the open market did deflate after .com busted. Luckly, I was in a niche where most engineers were retained after the boom and inertia kept our salaries high.

$200K for remedial code cleanup should be a transient phenomenon, when national median household income hovers around $50-60K. With good architecture and specification development, AI can do your remedial code cleanup now, but you need that architecture and specification skill…

I’ve watched businesses lose clients - I even watched a client go bankrupt - from bad coding decisions.

I interviewed with a shop in a University town that had a mean 6 month turnover rate for programmers, and they paid the fresh-out of school kids about 1/3 my previous salary. We were exploring the idea of me working for them for 1/2 my previous salary, basically until I found a better fit. Ultimately they decided not to hire me with the stated reason not being that my salary demands were too high, but that I’d just find something better and leave them. Well… my “find a new job in this town” period runs 3-6 months even when I have no job at all, how can you lose anything when you burn through new programmers every 6 months or less? I believe the real answer was that they were afraid I might break their culture, start retaining programmers and building up a sustained team like in the places I came from, and they were making plenty of money doing things the way they had been doing them for 10 years so far…

it’s a dangerous game I see a few other businesses executing without caution or comparable results.

From my perspective, I can do what needs doing without AI. Our whole team can, and nobody is downsizing us or demanding accelerated schedules. We are getting demands to keep the schedules the same while all kinds of new data privacy and cybersecurity documentation demands are being piled on top. We’re even getting teams in India who are allegedly helping us to fulfill those new demands, and I suppose when the paperwork in those areas is less than perfect we can “retrain” India instead of bringing the pain home here. Meanwhile, if AI can help to accelerate our normal work, there’s plenty of opportunity for exploratory development of new concepts that’s both more fun for the team and potentially profitable for the company. If AI turns out to be a bust, most engineers on this core team have been supporting similar products for 10-20 years… we handled it without AI before…