Replies to post #52379 on Biotech Values

[jbog]

Master/P3

It's almost impossible to put a "price" on what is right or wrong when talking about salaries.

Master, you made a comment on a Surgeon who suffered early in his career and then you justified his starting salary ($350k) as being right. Would his starting salary have been right if he earned a better wage earlier in his career? Would it have been right if his education was half the cost of what he spent?

He earned the $350k because of only one reason, supply and demand. If our medical society and schools control the supply they also control the price. Plain and simple.


P3, You mention the pay of teachers and more importantly you point out their funding source. The funding source is what has to change completely and no one realizes this.

I live in the 2nd highest taxed county in the U.S.. Our teachers are paid well but our property taxes are approaching 4% of the value of our property on a yearly basis and its only going to get worse. There has been a spiral downward in our area for 30 years, high taxes means corporations leave which transposes into higher taxes and no jobs when the kids leave school. Right now I'd guess 80% of my kids friends have left, so in short I paid for a superior education only to see the "product" leave and be of no value to our community. The average cost for a k-12 education is $14k yr.

So lets look at a different source of funding, not a additional source but a new source. The only logical source would be the federal government thru income taxes.

Why do I call on the federal government instead of local or state taxes? Well just think about it, what happens to every $10 the federal government spends? It gets returns from income taxes, investments, future income etc. I'm sure over time the feds probably get all their money back as long as the money stays stateside.

[Preciouslife1]

Great morning masterL and P3.....sounds like I am responding to Rap artists .>)....

The subject of compensation for work and experience, and
supply and demand is no where more distorted than in the world of sports. To wit, JaMarcus Russell, the Oakland Raiders 1st round draft choice, and a behemoth of a man by Qback standards, has never played a down in the NFL yet.
He has never thrown a pass, nor did he even attend training camp and throw a single pass to his wide receivers nor hand off the ball to a running back. Here is his reward for ZERO experience, ZERO production, and 100% supply and demand for a 6'6" man who can throw a football accurately 60 yards while
on his knees, it is said. Supply and demand.

Russell can make $41M in first 4 years

After missing the entire preseason, the home opener and 48 days in all, JaMarcus Russell received a very good contract from the Raiders. Not only was it the best contract ever given to a rookie, but the former LSU quarterback can earn over $41 million in the first four years of the deal, including easily-attained escalators of $17.5 million in years 2009 and 2010.

The six-year contract, one very similar to Detroit's deal with receiver Calvin Johnson, guarantees all of Russell's base salaries through the 2012 season. That total is $29.2 million. Russell will earn $3.2 million this year; $3.7 next year, $4.5 million in 2009, $5.2 million in 2010, $5.9 million in 2011 and $6.7 million in 2012.
However, Russell will receive advances on these guaranteed paragraph fives (the annual base salaries) and that's how you reach $41 million in the first four seasons. Russell should receive advances totaling $8 million from the 2011-2012 contract years.

The total contract, based on Russell reaching minimum playing time incentives, could be worth $61 million for six years, $32 million of that guaranteed. And in the NFL, the average salary for top quarterbacks is basically $10 million a year. If Russell is good, he will be earning the market price, based on his status as the first player taken, as an average over the next four seasons.

Yes, the Raiders basically front-loaded this contract, but feel good that there isn't a one-time incentive in the deal and that they won't be forced to re-do the contract. Even if Russell turns out to be a great player, the Raiders are in good shape to allow him to play out the deal. They are not in the same awkward situation the Colts were with Peyton Manning, whose single-season salary hit $15 million in 2003. The Raiders would actually have the opportunity, depending on the top-five average, to place the franchise tag on Russell in 2013. That probably won't happen, but at least the Raiders have that option.
To hit the escalators, Russell only needs 35-percent playing time this season (probably unlikely) or 45 percent in 2008 or 2009. You have to figure Russell will be the starter next season or owner Al Davis wouldn't have drafted him in the first place.

To this day, what irks the Raiders is that the basic parameters for this final contract were in place since July 27. They were hopeful after Johnson signed on Aug. 3 that they could finalize a contract, but it never happened. The team didn't hear from agents Ethan Lock and Eric Metz for 12 days in mid-August.

From the agents' perspective, they received a very good deal and believe they accomplished that by holding Russell out of camp and therefore negating any chance of the rookie playing this season.

So, that $350,000 starting salary after many years of schooling, residency at very low wages with horrible hours,
and the potential to be a lifesaver in real life, pales in
comparison to what a "kid" right out of College, whose applauses and accolades, fueled his College success, whereas, the resident gets to do every tedious and menial job in a hospital setting, the resulting difference is the system
or the playing field defined, and supply and demand.
The only problem is that the med students once so eager and
hungry to serve and heal, seem to forget about that over time
and focus on the $$$$, the homes, the cars, etc.....(some).
If he can secure that $350,000 salary, then more power to him, and if he gets $500, 000 the next time, better still.
It's all supply and demand, if nepotism and favoritism
are factored out. Nuff said by me....Peace and demand your supply!