Friday, June 27, 2008

Athletes Paid too much?

Refer to the last post, i use it as an example to explain why Athletes get so much and why they deserve it.

As for David Beckham getting paid too much.... it's all about demand, and the demand for great playes is very high, there arn't a huge crop of them to choose from, like there are Employees for Mcdonalds.

Anyone can work at mcdonalds but not everyone can be a professional soccer player.

Thus, even though certain soccer players might not work as hard as coal miners... they still get paid way more... because they are a rare commodity.

Consider a good soccer player like beckham a very nice, one of a kind, diamond.
That only a handful of such diamonds exist.
And thus, even though this diamond is nowhere near as helpful, as a 2000 dollar computer, this diamond is worth MILLIONS!!!

Sure... people just stare at it... but it's the fact that it's a rare commodity that gives it it's wealth.

Is David Beckham the hardest working man in the world? No
Is he a rare commodity? Yes

Does he deserve his money? Yes, just like a special diamond, deserves its 100 million dollar price tag.

Someone replies back to these comments mentioning:

Well when you compare football to macdonalds of course it'll seem different but what about when you compare theoretical physics to football. The table turns entirely.
I reply:

O.k, you win there, there are less good theoretical physics professors, or people who truly grasp it's knowledge than their are good football players.
So why aren't they a rare commodity worth millions?

There is not as big of a demand to see or hear from them by the general public like in David Beckham's case.

David Beckham joining, caused a HUGE surge in season tickets for the galaxy.
They are burning very very fast, and they aren't cheap either.

So again it goes back to demand.

No/less demand to see theoretical physics professors, while there is a great demand to see great football players like David.

Elementary Economics.


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