Scarcity and Incentives

From craigwright.net

When people query why elite athletes such as NBA basketball players are getting paid so much more than teachers, the argument is one of scarcity: it is not that basketballers get paid more; it is that the NBA selects an elite of basketball players. Such individuals are rare and hence scarce. The other side of the scissors is that such individuals are in demand. Whenever scarcity and demand meet, price increases, arising from the values attributed by the people seeking the good. The range of the teacher’s salary also varies. In part, the problem with public schools, in general, is that good teachers are not only ... (full story)