Economists believe people should get paid according to the value of their output.
Economists believe people should get paid according to the value of their output. This is relatively easy to determine when you produce something physical, such as cupcakes. However, it becomes challenging to measure if you provide a service (perhaps teaching, or you’re a doctor treating a
medical condition). Regardless of how you measure the value of the output, the more productive you are, the more valuable you are in the market
to potential employers. This is why many economists are against the minimum wage and are for programs that improve an employee’s productivity (such as education and training). There is a surprising agreement with just how important education is in minimizing income inequality among
economists. Given this information, what would you recommend to policymakers to reduce poverty and income inequality? What do you think about various school districts having vastly different access to resources around the state or even the country? Recall, spending more money on education does have an opportunity cost – be sure to include that in your answer.