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View Diary: Bristol Palin's Free Market "Worth" (6 comments)

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  •  Bristol Palin's worth is that of an "entertainer" (2+ / 0-)
    Recommended by:
    cassandracarolina, DRo

    If people care to spend their own money to hear her speak, those going made their choice that they would rather spend $50 to hear her speak than to spend the $50 on something else or save the money.  The people hosting the event likely made money doings so, as does her book publisher  I doubt the pediatrician could do the same as a speaker or writer (even with a ghost writer).

    On Dancing with the Stars, the producers expected to have higher ratings with her on the show which would allow them to sell their ads for a higher price compared to other "stars" available to them.  The show probably increased their profits by having Bristol Palin on the show, so what she was paid was worth it and made the show money.  Again, I doubt the pediatrician could do the same.

    The fact that you would not spend your money to see Bristol does not mean that other people will not.  There are many musicians and singers who I would never want to hear that make tens of millions of dollars per year.  It does not bother me that some people want to pay to hear them.  I also don't conclude they that there is something wrong about how they make their money.

    Don't make the mistake that a person's full value is what they earn, those who believe in market economies don't think this and neither should you.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Fri Jul 08, 2011 at 12:08:30 PM PDT

    •  A person's value (3+ / 0-)
      Recommended by:
      lostinamerica, srkp23, MKSinSA

      is indeed not what they earn.  I think that is the point.  On this we agree. However, as a culture, we seem to be guilty of believing it.

      Additionally, a point in the article is that the theory is commonly used to justify disparity in earnings, and the theory does not hold water when examined.

      Be the change you want to see in the world. -Gandhi

      by DRo on Fri Jul 08, 2011 at 12:40:26 PM PDT

      [ Parent ]

      •  A key aspect of markets is missed in the linked (0+ / 0-)

        article.

        When you purchase something, the value you expect to get from that item is greater than what you pay.

        I may purchase a computer cable for $10, but be willing to pay $100 before I would choose to do without it.  So while I only paid $10, I received $100 of value from it. For someone else the price might only need to be $5 before they choose to do without, while another person would choose to do without only if the cable's price were greater than $1,000.  We all value having the item differently, but we all only need to pay the same price of $10.

        It is a fundamental mistake (that even some economists make) to say the value customers placed on something equals what they paid.

        More accurately, the value purchasers expected to receive was at least what they paid.

        This misunderstanding is why some people are puzzled by entertainers being paid more than a doctor.

        The most important way to protect the environment is not to have more than one child.

        by nextstep on Fri Jul 08, 2011 at 01:16:48 PM PDT

        [ Parent ]

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