Economics Theory / Neoclassical Theory of Distribution

Posted: September 9th, 2013

Economics Theory / Neoclassical Theory of Distribution

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Economics Theory / Neoclassical Theory of Distribution

            Athletes in professional teams are paid way higher than teachers are. This is not due to games being more valued than education. Rather, it is a matter of demand and supply. Teachers are paid by the government that has many responsibilities such as infrastructure, public services amongst others. Therefore, it has limited money to spend on the teachers. Additionally, the teachers are many since a school could have many teachers, and all of them have to be remunerated by the government. On the other hand, professional players such as footballers are paid by the NFL. The NFL has more money to spend on players who are not as many as teachers are (Brown, 2012). Additionally, there are many people willing to pay for a game than those willing to pay for lectures. A player will be paid from proceeds received from tickets sold, as well as income from media broadcasters who pay to air the game. In addition, fans support the teams through buying their items such as jerseys. Therefore, athletes depend on the number of people they draw to the stadiums (Sexton, 2012). I feel that this is fair since the athletes train hard to become stars who entertain people. Thus, if they manage to pull more crowds and bring in more money for colleges than teachers do, then they deserve their reward.

Reference

Brown, R. (2012). Do NFL Player Earnings Compensate for Monopsony Exploitation in College? Journal of Sports Economics DOI: 10.1177/1527002512450266

Sexton, R.L. (2012). Exploring Economics. New York, N.Y: Cengage Learning.