

Insurance, benefits and labor expenses. Even in places with little worker protections there are costs that scale with the number of workers instead of the number of hours.
A brief look indicates employers in India can expect to budget on the order of 18% of an employees take home per year for those expenses.
There are some circumstances and places in the US where you don’t need to provide as many benefits to employees who work below 40 hours. Then you see employers hire more people and schedule them for just under the threshold to give them benefits.
The answer is always because it’s cheaper for them somehow.





Oh, they totally will. It’ll be another website boom. A lot of the big web presences will be damaged by the bust and hosting costs will fall through the floor. Less barrier to entry for making your little website and some portion of those will become problematicly large due to cheap cost driving bad design and we’ll go through the third or fourth round of this.
Or, for deepest irony, some of the most optimally located datacenters could be converted into steel mills and industrial bakeries.