Taylorism and the Hour as Unit of Labor

AI isn’t just speeding up your work—it’s collapsing the market price of your time. In this urgent episode, we trace how the hourly model took over (from artisans to Taylorism to the FLSA), why it systematically funnels surplus value to owners, and why AI is about to accelerate that transfer for consultants, coders, strategists, and creators.

Drawing on insights from Roland Frasier, we outline a practical pivot: Consulting for Equity (CFE). Trade your peak-leverage assets (judgment, access, strategic vision) for ownership stakes in businesses AI will amplify. The window to negotiate from strength is short—think 2–5 years. This is how you reconnect pay to outcomes and own a slice of the future you help create.

🔑 Key Takeaways

Time vs. Value: The hourly system decoupled pay from outcomes—AI will finish the job by commoditizing execution.

Urgency Window (2–5 Years): Use today’s credibility to negotiate equity before AI depresses fees and perceived human premium.

CFE in Practice: Swap cash fees for equity when your expertise is decisive to growth (governance + vesting + KPIs).

Trade What AI Can’t Replace:

Judgment: High-stakes decisions under uncertainty.

Access: Trust-based relationships and deal flow.

Strategic Vision: Category design, non-obvious bets, sequencing.

Outcome Math > Hourly Math: A single well-chosen 3–5% stake can outpace years of billable hours.

Episode Highlights

00:00 – Cold open: “Don’t outrun AI—trade expertise for equity while your bargaining power is highest.”

00:24 – The coming value crash for knowledge workers in the AI era.

01:21 – Roland Frasier’s thesis: AI destroys the perceived value of time-to-output.

01:50 – Our mission: connect the history of hourly pay to today’s AI shift.

02:24 – From artisans to factories: how ownership/control shifted from makers to capital.

03:41 – Taylorism & the split: managers think, workers execute—replaceability rises.

04:44 – FLSA codifies the hour; protections + unintended incentives for time-based pay.

05:24 – Surplus value 101: why productivity gains accrue to owners, not labor.

07:18 – The “great decoupling” and why AI accelerates it for knowledge work.

08:40 – Market perception shift: “good enough” AI collapses premium rates.

09:05 – The window: 2–5 years to convert expertise into equity.

10:33 – CFE example: swap a $50k fee for 5% in a $2M SaaS that scales to $20M.

11:47 – What to trade: judgment, access, vision (and how each compounds outcomes).

13:32 – Action plan: identify your first CFE target this week.

💬 Memorable Quotes

“If you’re just selling time, AI will set your price.”

“The play isn’t to outrun AI—it’s to own what AI will multiply.”

“Equity reconnects your pay to the value you actually create.”

“Trade judgment, access, and vision—because AI can’t.”

Mentioned in This Episode

• Roland Frasier on the urgency of Consulting for Equity (CFE)
• Historical anchors: Putting-out system, Taylorism, FLSA (1938), surplus value & the productivity/pay decoupling
• CFE Mechanics: Equity-for-fee swaps, vesting tied to KPIs, governance basics

Try This This Week

1. List 3 businesses where your judgment, access, or vision could create step-change results in 90–180 days.
2. Pitch a fee + equity or equity-in-lieu-of-fee structure with clear milestones.
3. Protect the upside: vesting tied to KPIs, information rights, and a path to liquidity.