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CEO pay isn't "basic supply and demand" unless you generalize the concept to such an extent that it becomes worthless. Board Member: "Why are you paying your b
by learc83 8y ago
CEO pay isn't "basic supply and demand" unless you generalize the concept to such an extent that it becomes worthless.
Board Member: "Why are you paying your brother $500k to be your assistant?. Surely an assistant shouldn't make that much money."
CEO: "I really want my brother to do it, and since I only have 1 brother it's just basic supply and demand."
You can basically frame any human interaction in terms of supply and demand, but it's not really useful to do so. And it's certainly not what most of us have in mind when we talk about "basic supply and demand".
- randomdata 8y ago> unless you generalize the concept to such an extent that it becomes worthless. Worthless in what way? Supply and demand is far easier to write than this long-winded explanation I have ended up giving to explain what it means. That seems well worthwhile, at least when in company who understand the meaning of the term. It is not like it is some grand unified theory of economics, if that is what you were hoping for. > You can basically frame any human interaction in terms of supply and demand Absolutely. All interaction has some cost, and supply and demand observes the willingness of all parties to accept that cost. That is exactly what supply and demand is all about. > And it's certainly not what most of us have in mind when we talk about "basic supply and demand" What is it that most of you have in mind? Supply, by definition, is the quantity of a product available at any price. Demand, by definition, is the desire and willingness to pay a price. Supply and demand is simply the observation of both and how they interact with each other. I am honestly unsure of what else you could think it means?