The diamond water paradox is a classic example of the numerous paradoxes that can be seen in everyday life. According to the diamond water paradox, the cost of diamonds is more than the cost of water despite the fact that water is essential for human existence while diamond is more of an optional luxury item. A good application of this paradox is the difference in the wages of essential employees like teachers and firefighters as against that of the sporting athletes. While the salaries of teachers, firefighters, policemen and other essential services workers are low, those that of the professional athletes is high. So, what is the reason behind this discrepancy? The analysis below will throw more light on this difference.
The first step to understanding the paradoxes that exist in salaries is to understand how wages are determined. Many factors are taken into account while determining the wage among different professions. One factor is the amount of risk that is taken by a person in fulfilling his or her responsibilities on the job and in general, the higher risk a person takes, the higher will be the salary. The second factor is the difference in the level of skills between individuals. The person who has higher skills will be paid higher because he or she is better equipped to perform a job satisfactorily and also the demand for skilled workers is likely to increase over a period of time when compared to that of unskilled workers. The third factor is the difference in revenue creation. When an individual can generate more revenue for the firm, then he or she will get paid more. Finally, external factors like trade unions can determine how much a person is likely to get paid. All these factors play a vital role in determining how much wage a person earns for the work that he or she performs.
Difference in the salaries between teachers and athletes
Based on the above understanding of wage determination, we can identify the reasons for the huge difference in the salaries between teachers and athletes. As mentioned above, the amount of revenue that is generated to the firm is a major factor in determining the salary levels. The athletes generate more money for their franchise by way of ticket sales, merchandise goods and telecast rights. Sports is a popular entertainment that is watched by millions of people around the world. When translated in economic terms, this means more money for the franchise company and so the athletes get more money because of the role they play in helping the company to get more revenue.
Another factor is the marginal utility of value. As in the diamond water paradox, water is less expensive than diamonds because they are readily available and an additional unit of water adds little value to the individual. On the other hand, diamonds are scarce and every additional unit adds substantial value and this is the reason it costs more than water. The same is the reason for the disparity in salaries between teachers and athletes. While teachers are available in abundance like water, athletes are rare and so they are considered to be a precious commodity like diamonds and this scarcity is the reason they are paid such enormous amounts of money each year.
Rising salaries of athletes
The salaries of athletes have seen a marked increase from year to year. The highest earning player in the Major League Basketball is Alex Rodriguez and he earns a whopping $32 million each year (USA Today, 2011). Other players in baseball, basketball, hockey and football typically earn in millions when compared to the paltry $50,000 a year earned by teachers. The Bureau of Labor Statistics (2011) estimates that the number of professional athletes in 2008 was 16,500 and this profession has one of the highest growth rates in the next decade. It estimates that by 2018, there will be 18,400 athletes and a growth rate of 12%. However, this number is still way less than the number of qualified teachers in America today and this means that the athletes salaries’ are not going to come down anytime in the future.
The huge salaries of athletes and the cost of tickets and sports merchandise go hand in hand. When a player can generate more money for the company by way of ticket sales and merchandise, then his or her value rises and so does the salary. Conversely, ticket prices are going higher because the franchise has to get more money to pay these huge salaries to players. In other words, it is the fans who pay these salaries to the athletes indirectly for the entertainment that they provide in the form of sporting games.
Hiring practices of sports teams
The hiring practice of professional sports teams have to be regulated because of the huge money involved. A player should be hired only because of his or her talent and no other factor should be considered. The professional bodies like NBA, NFL and MLB are already doing a good job of monitoring the hiring practices of different teams, but still teams have a lot more independence when it comes to determining the salaries paid to athletes. Specifically, the MLB does not put any cap on the salary paid to the players and more regulation is required in this area.
In short, it can be said that the salaries between teachers and athletes are based on the diamond water paradox. The abundance of teachers and the scarcity of top athletes and the subsequent marginal value they add to the society is the primary reason for this difference.
McLaughlin, Dan. (July 11, 2007). Rich Athletes, Poor Teachers. Mises Daily. Retrieved from: http://mises.org/daily/2626
Bureau of Labor Statistics. (2011). Occupational Outlook Handbook 2010-2011 Edition. Retrieved from: http://www.bls.gov/oco/ocos251.htm
USA Today. (2011). Major League Baseball salaries. Retrieved from: http://content.usatoday.com/sportsdata/baseball/mlb/salaries/player/top-25
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!