Monday 13 April 2009
The problem with high pay in the financial industry isn’t just that it tempts people to do illegal or unethical things. It also sucks a lot of talent out of other occupations in which it would do vastly more good. In general I think we should let markets sort out pretax pay, and if we don’t like the resulting distribution, we should then use the tax system to change it. That’s because we generally benefit from a price mechanism that assigns the most talented people to the most important jobs. Robert Frank ☀
