I've Solved the Deficit

[Elok]

Is this the same history teacher who wondered why discount airfares weren't depopulating North Dakota, or some gibberish like that? At any rate, you now know why they weren't Econ teachers.

[Asher]

I had a history teacher once who couldn't understand why football players got paid more than history teachers. I mentioned this to my computer science teacher, who said, "I don't see what's so hard about that. What is it, $30 for a hat? $40 for a shirt, something like that? Seems pretty obvious to me."

Sadly, the computer science teacher left to finish his PhD on computational fluid dynamics.We hope he'll come back next year when he's done, but he'll probably start working at a tech firm making a 7 figure salary instead

My brother did CFD (with a mech eng undergrad) in grad school. It's not the path to riches, necessarily.

I earn substantially more than him and I've got a lowly BSc to show for it. But people stopped caring what degree I had after I landed my first job out of school. It's pointless from there on out if you get the experience and you get amazing references from all of your old colleagues/managers. Don't know why people even bother with private colleges. People who go to them just can't stand up on their own merit.

[Hauldren Collider]

Is this the same history teacher who wondered why discount airfares weren't depopulating North Dakota, or some gibberish like that? At any rate, you now know why they weren't Econ teachers.

No, it's not, and that teacher a) recanted his position when I stated the obvious counterargument to him, as he just hadn't thought things through, and b) is actually a really smart guy.

[Hauldren Collider]

My brother did CFD (with a mech eng undergrad) in grad school. It's not the path to riches, necessarily.

I earn substantially more than him and I've got a lowly BSc to show for it.

Yes but this CS teacher is a genius. I have no doubt that if he enters the private sector he'll be quite successful.

[Al B. Sure!]

To be fair, it wasn't all that long ago when professional athletes didn't get paid squat and ownership gobbled up all the big bucks.

And shirt, HC? you mean a jersey?

[Hauldren Collider]

To be fair, you're an idiot.

[Al B. Sure!]

Are you denying that professional athletes in bygone days didn't get paid much?

Babe Ruth was paid an unprecedented $10,000/year in 1919 ($110,000 in today's dollars).

[Egbert]

Are you denying that professional athletes in bygone days didn't get paid much?

Babe Ruth was paid an unprecedented $10,000/year in 1919 ($110,000 in today's dollars).

$110,000 That's good money. Heaps more than most people get.

[KrazyHorse]

To be fair, it wasn't all that long ago when professional athletes didn't get paid squat and ownership gobbled up all the big bucks.

And shirt, HC? you mean a jersey?

Well, ignoring the obvious deficiencies of the labor market for professional sports players (owner's compact, players unions) it's pretty common to have skills change dramatically in value, especially at the top end of the distribution.

[Al B. Sure!]

$110,000 That's good money. Heaps more than most people get.

Yeah but Babe Ruth... i can't find good statistics on what average players were getting paid but it was a tiny fraction of freaking Babe Ruth's salary. In fact, the trade to move him from the Red Sox to the Yankees was a multi-million dollar deal in today's dollars. As you can see, his salary was peanuts compared to the amount of money that exchanged hands between team owners over his rights.

Plus consider that undrafted rookies today in the NFL (switching sports because I don't know what MLB pays today) for example, usually get 1-year ~$100K contracts. Now, how many of them actually get that money... not many but bottom of the barrel NFL players at least are given contracts that pay them what Babe Ruth was getting paid adjusted for inflation.

[Al B. Sure!]

Nevermind.

[Kuciwalker]

Well, ignoring the obvious deficiencies of the labor market for professional sports players (owner's compact, players unions) it's pretty common to have skills change dramatically in value, especially at the top end of the distribution.

You forgot the even bigger deficiency that it's one of the most positional markets that exists. (As far as I can tell, this should justify a fairly steep tax on athletes' incomes.)

[Egbert]

Yeah but Babe Ruth... .

Good point. I accept that in the old days professional athletes probably weren't paid much.

Caveat. I leave the following definitions vague: old days, professional and megabucks.

[Al B. Sure!]

You forgot the even bigger deficiency that it's one of the most positional markets that exists. (As far as I can tell, this should justify a fairly steep tax on athletes' incomes.)

What do you mean by 'positional market'? I have never heard that term before.

Because teams compete for players and players compete among each other for contracts? What does positional mean?

[Kuciwalker]

http://en.wikipedia.org/wiki/Positional_good