Still an effort based system of pricing.
October 8th, 2009 | Published in Economics idea
As I envision it, allowing different jobs to have different wage caps doesn’t change the fundamental idea that workers are being paid based on effort instead of output. The increased wage caps for some jobs just makes it easier to deal with the fact that some jobs are more appealing than others.
I also don’t envision the difference in wage caps to be that significant. I’d want the highest paid people in the economy to only be paid 2 or perhaps 3 times the standard wage. More than that can’t really be justified in terms of providing incentives.
Rock stars and basketball players would only get 2 or 3 times as much as ordinary people, not orders of magnitude higher pay.
