An economics lesson for Matt Damon

In his pathetic attempt at political activism at the recent and poorly named Save Our Schools rally in D. C., Matt Damon gave an interview to Think Progress in which he stated that “despite what you hear even the union teachers are underpaid.”

Some teachers are underpaid, and some are also highly overpaid. The problem is we don’t know which we’re paying too little and which we are paying too much. As I’ve noted before, absent a free market in education, we don’t know if teachers are underpaid or overpaid because, with fixed wages in a monopoly, we don’t know what teacher wages should be.

If teacher A has an efficacy rating of 85% and teacher B has a rating of 50% and they are both being paid $40k per year (and all other factors are equal), teacher A is being underpaid relative to teacher B. But they both may still be underpaid, or vice-versa, because we don’t know what each of them should be getting paid.

Prices (of which wages are in specie) convey information; they tells us things we cannot know inherently, such as the subjective value of a teacher.

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2 thoughts on “An economics lesson for Matt Damon

  1. It’s a fact that some kids don’t want to learn and to base a teachers pay on a spoiled kid with an attitude is crazy, this is just an attack on unions. Now mexican truckers and trucks can haul on u.s. roads, this is collusion between our bought and paid for politicians and big business and some people are stupid enough to point a finger just like fox news and scum of the same stripe twist the truth, the morons who buy into this are cutting their own throat while we the american people become a third world nation. What we need to do is stop using our tax dollars to help companies outsource jobs, remember the real democrats tried to stop this farce with a bill , but the republicans filibustered it and the pay offs began

    • How dare mexicans drive trucks on our roads! And how dare companies hire the best man for the job! Those fuckers! It’s a conspiracy!

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