[SilverBirch]

Here's the obvious counter - social media companies are by nature trying to chase super-linear cost:return ratios. So they can't actualy accept that N users mean N/x moderators. So instead, you hire Y moderators, and any time anyone points out you've shit the bed you wave your hands in the air and whisper "AI" when really what's happening is Y < N/x so you have a shit moderation team.

[rmatt2000]

If there aren't enough moderators, wouldn't the likely result be fewer rule-breaking accounts banned rather than more non-rule-breaking accounts banned?

Maybe, instead of hiring N skilled moderators for $D, they could be hiring N * \delta unskilled moderators for the same price.