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Productive people mean more hires
The arithmetic
The logic is arithmetic. If people are fifty percent more productive, each can handle fifty percent more clients, and with better customer service the company keeps customers longer and grows faster. Every person becomes more valuable, so the company wants more of them.
Picture a salesperson using AI to hit three times quota. A company with that salesperson wants as many more like them as it can hire.
Long Lake's results
Long Lake started in homeowner association management, where it has bought twenty-something companies, and it has now bought close to forty companies across five service lines. In the businesses it has owned longest, like HOA management, the result is significant job growth. History points the same way: most innovations that lead to big productivity gains turn out good for the economy, wages, and consumers.
Why did ATMs not cut bank teller jobs?
Economist James Bessen found that the number of US bank tellers grew in the decades after ATMs spread. ATMs reduced the tellers needed at each branch, which made branches cheaper to run, and banks responded by opening more of them. The tellers who stayed shifted toward sales and customer relationships. Bessen laid out the case in his 2015 book Learning by Doing.
How can efficiency raise total demand?
In his 1865 book The Coal Question, economist William Stanley Jevons observed that Britain's coal use rose after steam engines became more efficient. Cheaper work per ton of coal made it worth using steam power in many more places. Economists now call this pattern the Jevons paradox.
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