Friday, 2 December 2011

Scarcity and Rare

This picture specifically intrigues me because it illustrates an economic concept that is really hard to be understand. Rare and scarcity. When a football player earns more than a firefighter, does that mean that we value a football player more than a firefighter? Or does it means that we value someone who can kick a ball more than a person who saves life? Or does it mean that a football player is rarer/more costly than a firefighter? In this situation, which one is rarer, a football player or a firefighter?

Probably there's some factor that makes the salary of a football player higher than firefighter. Probably because a person who can really kick football is both really rare and scarce. Not everyone can kick football, so it makes a goodfootball player really rare. There is also the competition arise from different teams and companies and countries who are fighting against each other to get that football player. It makes a good footballplayer scarce. The cost of raising a firefighter is definitely lower than raising a football player subsequently.

Although it somehow demotivates me, this is the true face of reality: things become expensive when it's rare and scarce.

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