Reply #112: salaries and prices are based as much on power as they are on value [View All]

[hfojvt]

You cannot measure the net productivity of a person using the monetary value of his estate. Otherwise the cocaine dealer is leading a very productive life, unlike, say, Gandhi, who left only a bowl and a prayer book when he died. Not only that, but having worked side by side as a temp with people making twice my salary plus benefits, it was pretty clear that I was working harder than them and producing more value, although that was not reflected in my pay, and would not be reflected in my estate.

On the other hand, I have gone to a doctor, had them take my temp and blood pressure (or an aide did that), talk to them for ten minutes or so, and for that they want $100, almost half a week's take home pay, and the doctors only confirmed my on-line diagnosis of an ulcer, or in another case, my mom had to suggest anemia.

In other words, they over-value their own importance and knowledge. For an average doctor to actually save four lives per day, he would have to be positioned at a node of sorts where he had access to that many people who needed his specialized services, same with a CEO, who, as a chief, has a place at the top (another node). Being at a node gives one the power to divert revenue flow regardless of the value being produced.