Adam Smith Builds an App

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Adam Smith Builds an App a discussion by Matthew McCullough of GitHub

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The person whose whole life is spent in performing a few simple operations, of which the effects are perhaps always the same, or very nearly the same, has no occasion to exert his understanding or to exercise his invention in finding out expedients for removing difficulties which never occur. “

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1776

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The Economics of Software Development

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The Behaviour of Software Developers

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Economics Game Theory Ethics

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9 Economics 9 Game Theory 9 Ethics

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Economics?

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AFRICAN DEVELOPMENT BANK GROUP Eco Bank of Benin Plc 96 Recette Principal,Cotonou,Benin. African Development Bank (Eco Bank Plc) Email-contact: oke.steven968@contractor.net http://www.ecobank.com ======================================================== Attention; The Eco Bank Plc kindly write to inform you that the African Development Bank Group (ADBG) in conjunction with African Union (AU) has bought over all the foreign debts within the African region in what is called DEBT-BUY-BACK AGREEMENT. Under this circumstance we have recall all payment file within African Continent only. It was possibly due to the pressure from the International Community, American Government, World Bank and the IMF. Coupled with the Crisis in African countries had prompted our contact to you in this first quarter of the year 2012. The Eco Bank Plc (http://www.ecobank.com) and (ADBG) are only working on the files approved by Solomon smith Banner as we have no trust on files submitted by local banks in Africa. All your data has been verified by SOLOMON SMITH BANNER.

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The Eco Bank Plc (http://www.ecobank.com) and (ADBG) are only working on the files approved by Solomon smith Banner as we have no trust on files submitted by local banks in Africa. All your data has been verified by SOLOMON SMITH BANNER. Please note that this information's must be kept secret to avoid hackers entering into our data base and steal information of beneficiaries. All payment process must be done in the bank; Back door transaction will not be accepted. No rigorous system involved. Payment should be on Bank to bank transaction, E-payment system. Please reconfirm your following information for verification of beneficiary's details (Your Full Names, Mailing address, Telephone number, fund amount, date of Birth and occupation), No bank details required at this stage. Get your information‚s forwarded to us via mail oke.steven968@contractor.net Thanks for your co-operation. Contract Payment Department

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I’m not into

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I’m not into economics

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do you get

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do you get paid for your work?

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You are into

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You are into economics

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Economics

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$100 per hour

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Wow!

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Pricing

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$95 Filet Minon $45 Roast Duck $35 Roast Chicken $25 Ratatouille $15 Ceasar Salad

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$95 Filet Minon $45 Roast Duck $35 Roast Chicken $25 Ratatouille $15 Ceasar Salad

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It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages. “ —Adam Smith, An Inquiry into the Nature & Causes of the Wealth of Nations

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Discovery #1

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Discovery #1 Don’t price everything at the point at which it would sell well.

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Discovery #1 Price some top-shelf items high so as to sell others beneath them. Don’t price everything at the point at which it would sell well.

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What about the occasional filet minon buyer?

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If you decry reality for not following your model, then you're no longer practicing science, you're an economist. “ —Every scientist that ever looked even sideways at economics

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Markets

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but then the obvious question to ask is what are the alternatives and do they work better? You want to think broadly about that, rethink a lot of the institutions; but you still have to think about what are the possible alternatives. If there are no possible alternative that's better then I think we are stuck with the not-so-good alternative we have; “ —Dr. Russ Roberts, George Mason University with Debra Satz on EconTalk, August 2011 Episode

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build tools...

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XY\kk\inXpkfYl`c[

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I also share your value of choice and enabling a wide range of choices. I do worry about if you make some choices available to people that are actually really harmful, you'll wind up in situations where sometimes people feel more compelled to make those choices. “ —Dr. Russ Roberts, George Mason University with Debra Satz on EconTalk, August 2011 Episode

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XY\kk\inXpkfYl`c[

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XY\kk\inXpkfYl`c[

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Discovery #2

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Discovery #2 Don’t criticize in isolation

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Discovery #2 Don’t criticize in isolation Make choices based on comparing available options

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O S X i s f o r b u i l d i n g websites, Linux is for running them, Windows is for testing Internet Explorer. “

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Utility Functions

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$200 per hour

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Awesome!

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wait... hey...

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Why are they paying so much?

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The figures... are based on the assumptions that both sides are able to translate all relevant values into a “common denominator” “utility”. To act “rationally” according to this criterion means simply to choose from among the available courses of action the one which promises to maximize expected value... over the long run. “ —Glenn Snyder Deterrence and Power, 1960

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Discovery #3

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Discovery #3 Very few actions are pure currency transactions

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Discovery #3 Very few actions are pure currency transactions Make choices based on weighing both utils and currency

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Discovery #4

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Discovery #4 Some technical decisions are made by stakeholders

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Discovery #4 Some technical decisions are made by stakeholders More technical decisions are made by steak-eaters

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Factories

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creating happiness

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It is naturally to be expected, therefore, that some one or other of those who are employed in each particular branch of labour should soon find out easier and readier methods of performing their own particular work wherever the nature of it admits of such improvement. “ —Adam Smith, An Inquiry into the Nature & Causes of the Wealth of Nations

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Discovery #3

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Discovery #3 Very few actions are pure currency transactions

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Discovery #3 Very few actions are pure currency transactions Make choices based on weighing both utils and currency

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Skill Spikes

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Only hire someone who is constantly improving their skills and seems like they would be great at running the company... Because they essentially are. “ —Chris Wanstrath GitHub Tech Talk

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Discovery #5

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Discovery #5 One developer is not ever fully comparable to another

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Discovery #5 One developer is not ever fully comparable to another Choose co-workers carefully. Some actually cost you utils.

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Discovery #6

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Discovery #6 A weekly one hour spike on a technology generates informed hot or not positions

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Discovery #6 A weekly one hour spike on a technology generates informed hot or not positions Spikes indicate whether or not to invest more time.

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recruiters...

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Hi Matthew, I have a couple of openings in the tech center for junior java developers with 3 - 5 years of java development experience. Do you know anyone you could recommend? If you refer someone and we hire them, you are eligible for a referral fee. Thank you in advance! From: "Kendra Alvarado" Subject: do you know any junior java developers Date: March 2, 2012 12:17:48 PM CST To: "Matthew McCullough"

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Java Scala JavaScript Objective-C Clojure

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Discovery #7

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Discovery #7 Hot skills can flame out unexpectedly but can pay very well in the short run.

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Discovery #7 Hot skills can flame out unexpectedly but can pay very well in the short run. Have a modestly diversified portfolio of skills.

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True Cost

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Skill Retention

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Java Scala JavaScript Objective-C Clojure

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Even a brief nap may help boost learning, memory, and creative problem solving. “ —Harvey B. Simon, M.D., Harvard Medical School

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Discovery #8

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Discovery #8 Our primary job functions are learning and invention.

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Discovery #8 Our primary job functions are learning and invention. Sleep aids skill acquisition, retention & creativity. Sleep more.