Comment 27130

By A Smith (anonymous) | Posted November 01, 2008 at 20:53:00

Richard, why do sports teams pay athletes millions of dollars, while nurses earn relatively little in comparison? It's because it makes economic sense to do this.

If you own a sports team, you have only a few employees, but these employees generate hundreds of millions of dollars in revenue.

Television allows each athlete to reach millions of people every night.

Nurses on the other hand, can't treat millions of people simultaneously and therefore are limited in their earnings potential.

That is also why companies can not pay workers in China the same wage rate they can do in Canada. Chinese workers simply do not produce enough economic value.

Think about Google for a moment. Google created a great search algorithm that made life easier for people. However, without the power to reach billions of people over the internet, their company would still be operating out of a garage.

Therefore, if you want to help workers earn a better wage, adopt policies that lead to more capital appreciation.

In previous decades the Federal government spent over 1% of GDP on things like roads, ports, airports and other infrastructure that helped business to expand. Today we only spend .32% of GDP.

By shifting away from investing to consumption, we have also slowed down the rate at which wages rise. Everything good comes at a cost, so the cost of producing better jobs will require more of our tax dollars be spent on things that last, not just consumables like our government does today.

Permalink | Context

Events Calendar

There are no upcoming events right now.
Why not post one?

Recent Articles

Article Archives

Blog Archives

Site Tools