Who Creates "Value?"

Have you seen that stupid sound bite of the New Messiah where he opines that we have to do something for those who "create" the wealth?

Honestly, it's a line right out of Ayn Rand's "Atlas Shrugged."

By alleging that various and sundry line workers, clock-punchers and other production workers 'create' wealth, while all other functions, including capital providers and owners, do not, Wonderboy is basically telling us that market-determined prices for labor are all hooey. And wrong.

So he's going to change them.

Last time I looked, having government meddle in setting the prices for various labor types was not called free market capitalism, or even a mixed-market economy.

It's socialism, slouching toward communism.

Essentially, the First Rookie is saying that supply and demand don't create the 'right,' market-clearing price for labor. He knows better.

Nevermind that, in the long run, people are paid based upon the value they generate. Thus, highly-skilled designers and engineers frequently make quite a bit of money, compared to laborers who just have to operate production line machinery.

Part of the price differential is the ease with which they can be replaced. Recruiting the next iPod's design team is a lot more complicated then replacing the swing shift at your local factory.

As it is, American production workers are paid more, comparatively, than many foreign workers because they are more productive. And some of that productivity is provided by....the owners.

But our newly-elected First Rookie refuses to acknowledge this. In his mind, if the end value of a product is large, then the 'workers' who were last to touch it must have created all or most of that value. Therefore, in his addled way of thinking, they deserve the highest pay.

Maybe it is time to follow John Galt and head for the hills for the next four years.