3 ms·

You also have corporate governance problems where the CEO gets to pick far too many of his friends that leads to some distortion. Are movie stars salaries sane?

by curt 15y ago

You also have corporate governance problems where the CEO gets to pick far too many of his friends that leads to some distortion. Are movie stars salaries sane? Basketball players? The market pays what it sees fit, I'd say a $20 million/yr CEO creates far more than a $20 million/yr athlete or movie star.

jshen 15y ago
"The market pays what it sees fit" There is no such thing as "The Market", there are markets, all of which are composed of arbitrary rules created by people. They are all corruptible, and the question here is if ours is being corrupted and is in need of some systemic changes.
- curt 15y ago
  Yes it is corrupted by government regulations and interference that have distorted the pricing effect that makes markets work. These are basic economic principles. The problem is people don't understand the pricing effect. When you do it's obvious why problems such as health care exist or why increasing tax rate doesn't increase revenue (Hauser's Law, tax revenue is 18% of GDP no matter what tax rates are).
  - jshen 15y ago
    "tax revenue is 18% of GDP no matter what tax rates are" Not really. http://www.angrybearblog.com/2010/11/hausers-law-is-extremely-misleading.html http://www.angrybearblog.com/2010/11/hausers-law-is-extremel... "it is corrupted by government regulation" It is corrupted by people. If we had no government it would still be corruptible. "These are basic economic principles." Like if I have a bigger gun than you, I get the rewards? Oh, you mean principles that we agree to in the form of government? Principles which are arbitrary and chosen by humans and vary from market to market! Yes, those "principles".
- jshen 15y ago
  A question for the people voting me down, do you believe there is some singular market that is a law of nature? If not, then why do you disagree with my comment?

3 ms·

You also have corporate governance problems where the CEO gets to pick far too many of his friends that leads to some distortion. Are movie stars salaries sane?

by curt 15y ago

jshen 15y ago
"The market pays what it sees fit" There is no such thing as "The Market", there are markets, all of which are composed of arbitrary rules created by people. They are all corruptible, and the question here is if ours is being corrupted and is in need of some systemic changes.
- curt 15y ago
  Yes it is corrupted by government regulations and interference that have distorted the pricing effect that makes markets work. These are basic economic principles. The problem is people don't understand the pricing effect. When you do it's obvious why problems such as health care exist or why increasing tax rate doesn't increase revenue (Hauser's Law, tax revenue is 18% of GDP no matter what tax rates are).
  - jshen 15y ago
    "tax revenue is 18% of GDP no matter what tax rates are" Not really. http://www.angrybearblog.com/2010/11/hausers-law-is-extremely-misleading.html http://www.angrybearblog.com/2010/11/hausers-law-is-extremel... "it is corrupted by government regulation" It is corrupted by people. If we had no government it would still be corruptible. "These are basic economic principles." Like if I have a bigger gun than you, I get the rewards? Oh, you mean principles that we agree to in the form of government? Principles which are arbitrary and chosen by humans and vary from market to market! Yes, those "principles".
- jshen 15y ago
  A question for the people voting me down, do you believe there is some singular market that is a law of nature? If not, then why do you disagree with my comment?