Originally Posted by Play The Man
AdamT, I think you should read a little AdamS(mith). Your recommendation would almost certainly lead to less wealth and a lower standard of living for everyone.
You mentioned athletes; Do you think Matt Hughes is overpaid? If Matt is paid $250K for a fight, how does that hurt anyone?
When Matt agrees to a fight, it causes so many economic ripples, it is almost an economic tsunami. People buy PPVs. People buy tickets. Matt and his family profit, but they are not the only ones. Many, many people profit from that economic activity - ticket vendors, ushers, parking lot attendants, coaches, ring girls, concession stand workers, announcers, referees, judges, doctors, cable company employees, pubs, waitresses, bartenders, etc., etc., etc. If you limited his salary to $100K a year, he would probably retire. Why starve yourself, workout for hours on end, be separated from your wife and kids, and risk getting punched in the face or suffer an injury? When Matt gets paid his $250K, I would bet he doesn't hoard a pile of gold somewhere. He probably buys new farm equipment (John Deere employees benefit and his farm becomes more productive), invests in his gym (benefits the employees and students of the gym), goes on hunting trips (benefits hunting guides, lodges, firearms companies, etc.) and buys things for his kids (piano lessons, bicycles, etc.) It almost seems like you think it would be better for him to be at home making soap or canning jam. These activities are useful activities, but not the most productive thing for someone blessed with a unique gift. He should get paid whatever the market will bear. Don't covet his gifts.