HalMorris comments on Intelligence explosion in organizations, or why I'm not worried about the singularity - Less Wrong
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For the owners and shareholders though, not for the employees, unless they are all partners. As to why more employees could lead to lower profit per employee. Suppose a smart person running a one-man company hires a delivery truck driver. I'd expect it to happen there. That's only an example but I think it suggests some hypotheses.