Diamonds and Water

I just discovered a guy, Daniel J. McLaughlin, who has some valuable insights:

There are some very good teachers, but teaching in a typical classroom is not generally a route to superstardom. There are relatively limited classroom positions in any geographic area, and usually plenty of competent and capable people willing to fill the spots. They are similar to water in our example. They may be necessary, they may be very good, they may provide a very valuable service, but they are also abundant.

Aspiring athletes get to be superstars because they have some type of rare talent. Top athletes can do things that mere mortals can't. Most have paid a heavy personal cost to get there. Many more try, but don't even come close. Only a tiny fraction actually make it to the big time. The level of ability and dedication it takes to be a superstar is, indeed, very rare. That rarity makes them the diamonds in the realm of professional endeavors. They have millions of adoring fans willing to pay money to see them. The supply is extremely low and the demand is extremely high. They command a high price for the same reason that diamonds are expensive.

All athletes, however, are not diamonds. Some are rubies, some are quartz, some are coal. Those that are not diamonds command less pay and may play at lower levels, farm teams, semi-pro or amateur leagues.

There are also different levels in teaching. While some are not called "teachers", they still need to be included for comparison. Some are called professors, consultants, public speakers, writers, etc. The level of pay for any of them depends on the perceived value of the skill that each individual exhibits in relation to the skills of those that would replace him or her. Thus, a renowned consultant or professor with a significant reputation , who is a popular writer and has taught many thousands of people, may actually make millions of dollars. He or she is just as much a teacher and, though called by a different name, can be thought of as a superstar of teaching, similar to superstar athletes.

I've argued these points before, though not here, I don't think. He puts it very clearly. There are teachers making millions. We just don't call them teachers. And they don't work for the government.

I should tell you that I didn't realize he was the author of this article when I finally got around to reading Economic Lessons from the Amish in my email.