PatrickBateman
Norm Smith Medallist
Yes, but the skill I cultivated is held in higher regard than the skills of other (child development, education, health). That isn't supply and demand, that is subjective decisions made about what is important.
Cultivated? Let's hear about this skill then and discuss.
Who is making this decision then? Occupation X is less important that Y? If you're going to compare government jobs with corporate, there will be discrepancies. But even within the government, supply and demand rules still apply for determining salary. This is a capitalist economy after all.
Example. Why are STEM qualifications rewarded with higher pay? Two reasons, 1 - qualifications are harder than others to obtain, 2 - there's a scarcity of those skills in the workforce. No one decides that these skills are more important that teaching or nursing, the market rewards them for being in shorter supply.
If supply and demand truly determined peoples wages, people like teachers, cleaners and child care workers would be the highest paid people in the workforce.
If there are no teachers, and child care workers, society would be far more impacted than other higher paying jobs.
There's plenty of evidence out there of oversupply re teachers, graduates not able to find placement, etc. There's a heap of supply for child care workers and cleaners, both require little to no education.
Business owners aren't stupid, they won't generally pay more for an employee than their market worth. Since the government is paying with our money, they should be doing to same, for the most part they do.