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Lets say you own a business. You need someone to clean at night.

If you hire a cleaner directly you don't want to have to go through the hassle of hiring a new cleaner every few months so you pay them well so they will stay. Since they are your employee you probably include them in other items you give to other full time employees, such as profit sharing and vacation.

If, instead of hiring directly, you pay "Acme Cleaning Services" you know someone will show up every night to clean, even if it isn't the same person. The cleaner is no longer "part of the team." Acme Cleaning Services treats their employees like replaceable cogs in a machine, all they do is hire lots of low skilled labor and keeping pay low lets the company get more business.




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