Thursday, October 23, 2014

Team Production and Distribution of Wealth

In the article titled, How to Get the Rich to Share the Marbles, the author touches on a political issue of equity distribution by using psychology concept characterized as “Share-the-Spoils,” or sharing the wealth. Although this piece is a bit out dated, it addresses the cries from individuals, specifically the Democratic Party, in the United States who complains about rising economic inequality. The margin of wealth between the wealthy and the poor seems to be growing; many are calling for an increase in taxes for the rich, which is a sort of “Share-the-Spoils” mentality. However, the author, Jonathan Haidt, concludes that this is not the answer to the economy’s troubles. Haidt’s believes that they should, “focus less on distributive fairness — which is about whether everyone got what they deserved — and more onprocedural fairness—which is about whether honest, open and impartial procedures were used to decide who got what.

It is interesting to take a look at this from a professional football player’s perspective. Generally, the highest paid players on a team roster are their high powered offensive weapons, but let’s just say that the quarterback is the highest paid player on the team. In order for a quarterback to be successful, they have to have a well-functioning offensive line in front of them. Without a good offensive line, the quarterback has no time to throw the ball, they can’t score, and they can’t win. The players on the line sacrifice their bodies every week so their team can win and are given very little praise from fans and sponsors. The amount of money a lineman makes is solely based on how much money is in their contract. Depending on the team’s performance, this can lead to bonuses, such as contract extensions or a higher salary. This is an example of a gift exchange between the organization and a player.

As stated in the paragraph above, offensive lineman put their bodies on the line, and as a result are the most injure prone players on the field. Since they are doing the most work why don’t they push for the organization to give them a bigger piece of the pie? The answer is simply based on their understanding of their role on the team compared to the quarterback, as well as concerned with the overall team production. They understand that the quarterback brings in the most money for the organization based on ticket and jersey revenue, broadcasting rights, and sponsorships. As a result, a quarterback is guaranteed to sign a bigger contract for a longer period of time. Many big time QBs will not settle for a mediocre contract. As long as the quarterback has the tools for the team to be successful and put points on the board, then the terms of his contract were honest and open.


Although the distribution of equity within the United States economy and the distribution of wealth between professional football players is not necessarily the best comparison, I believe that it does relate to Jonathan Haidt’s conclusion in the article. Individuals should focus less on the distributive fairness; instead they should put their heads down and strive for success and look at the big picture. Taking money or specifically targeting wealthy individuals will not improve the economy. The wealthy individuals are what drive the economy, just as a quarterback is what guides his team to a win. The more wealthy individuals can pump into the economy the more it will improve, so there is no reason to divide up wealth between people.

2 comments:

  1. Let me talk about pro football first, then take on your other points. For players who have been around for a while there is a market. Players are free agents when their contracts run out. What they get paid, even if they resign with their home club, is pretty much market determined. There are lots of anecdotal stories that during the week before the game the quarterback takes his full offensive line out to dinner and they develop a camaraderie (which may be missing on the Bears at present). So that part might be characterized as gift exchange. But the salary these guys get is not gift exchange, it is pretty much market determined. For a newly drafted player the situation is a little different as the club has a a certain amount of monopsony power with the players it has drafted, but if the player proves successful, I think it best that to think of the salary part as being market determined. There may be other parts of the job that make the great teams better than the rest, which is on helping others on the team perform at a high level as well as raising their own performance. That part might be characterized as gift exchange.

    As to principles of taxation and the politics of this, I think it useful to look at some history from quite a while ago. During World War II government spending was massive and there were wage and price controls put into place. The general sense is that this was all necessary to fight the Axis powers. There was much more of a consensus as to a national mission that was urgent and absolutely necessary. We have no such consensus now, so you see rather large differences of opinion regarding appropriate fiscal policy across party lines.

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  2. After you put it into perspective, i'd agree that a player's salary is mostly determined by the market. A better example of gift exchange in professional football can be seen towards the end of a franchise players career. Generally, a team will reward a veteran player who has been with the organization for a long time as well as played at an all-pro caliber level. Most of the time this reward is a reasonable, yet a generous contract deal. Other times teams will offer a player an assistant coaching job or another position within the organization.

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