If survival needs such as water and food are the most important, how come entertainers get paid alot more??

Question

shouldn't farmers be monetarily richer than say actors and rock stars or even CEOs of some arbitrary companies that deals with middle management between industries and business sectors.

money is just a paper currency that promises values of future goods. it's a linkage between what you've produced and what products you want to buy/get.

yet, companies that deal with money and related services are richer, get paid alot more than farmers and similar industries that provide needs for life.

if firms and entertainers etc make more money than say farmers etc, then what does that say about our priorities in today's society? if we're truly that far advanced and such primitive survivals are out of the question then why a huge chunk of humans dying everywhere from starvation etc and why are there still battles and wars that cry out primitivism?

that being said, is our value of money justified and correctly allocated by having money management firms and stock firms ranking high up there, along

with entertainers and lawyers ...etc.

those seem like social benefits, interactions amongst people, whereas food and water etc are necessities above all things including man-made priorities.

Answer 1

In markets prices are set by supply as well as demand, and the supply of water and food will be increased as long as the price is greater than the cost of production. However high paid actors/entertainers have unusual talents or are celebrities .so there services are not the same as just any actor, that is they have a monopoly and their particular product, so can they sell it in the market for a price that is much greater than the production cost.

Why money managers make such enormous sums is a lot more puzzling. Economist have demonstrated repeatedly that managed money does not have higher returns than indexes or random investments, but rich people are willing to pay money managers high commission for their services.

Answer 2

in market economy, prices (and wages) are function of both the "need" for the good and the cost of producing it.

Growing food and providing clean water is easy and cheap and does not require any special skills or talents from workers; managing a company requires lots of education, job training talent and intuition.

If you disagree with me, try growing some potatoes in your backyard, and then try to start a business.