In a society where Alex Rodriguez makes $25 million per year and Jim Carrey makes $20 million per movie, it appears that high-profile celebrities make far too much money. \nIn all reality, these people are making exactly what they are worth. The name of the game is capitalism, and those who believe these celebrities earn too much money do not have the faintest clue of how a market economy works.\nIn the United States, the market prices goods and services via competition among various suppliers. So a celebrity shops around until he signs a contract for a certain amount of money. By the rules of capitalism, whatever he signs for is the correct dollar number.\nIf people are willing to pay X dollars for a movie ticket or sporting event, are the celebrities attracting these people not entitled to their portion of the revenues? The amount of any celebrity's contract is based off what he brings to a movie, show or sporting event.\nSince profit is top priority, there is a balancing act for producers and franchise owners. They must find the right amount of money to compensate their celebrities, and they still have to make a positive return.\nSo, the big money contracts have to be set exactly right, or the celebrity will go somewhere else.\nIf the Orlando Magic hadn't given Tracy McGrady a $93 million dollar contract, he would have signed with some other team. In turn, the Magic would not have the standing and fan base it currently has.\nThe United States attracts celebrities from all over the globe. Since the U.S. compensates them the best, they move toward the money. If people want to lower the salaries of high-profile celebrities, then the talent will move out of the U.S., and our economy will undoubtedly suffer.\nLiberals think that society short-changes other occupations relative to the services they provide. A common idea is that public schoolteachers do much more for society than celebrities. Yet they are paid terribly.\nThis is ludicrous.\nThe problem lies in the number of people capable of performing these tasks. A large number of people can teach children, but fewer than 400 people can participate in the National Basketball Association.\nIf fewer people could teach (or if fewer people wanted to teach), then teacher salaries would rise. Should more people demand higher-paying jobs, the school system would need to raise wages to entice people to work as teachers.\nMost athletes or actors will never make it to elite levels. With the exception of Jared Jeffries, nearly every one of the IU men's basketball players will have successful careers as high school gym teachers. \n In addition, ESPN states that the average NBA player will only play his sport for fewer than five years. NFL running backs have an average career of two years. While their salaries may seem incredibly high, they will only make that money for a short period of time. It is not a continuous stream like a teacher's salary, which may last over forty years.\n With those kinds of odds, with that amount of time, is it ridiculous to reward the very best of the best?\nPeople who believe celebrities make too much money are advocating the removal of a basic tenet of the capitalism. They should join a government that decides who deserves what. They'd be better off in some other country, where they will have a lot of fun with a struggling economy and a bunch of teachers. Those actions did wonders for the communists.
Are celebrities paid too much?
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