Wednesday, February 5, 2014
What's Hot, What's Not
I believe in the Marketplace, where things are what they are. If something is hot, the value goes up and when it cools, the value goes down. That's just how it is. This is not to say that I am OK with everything about the Marketplace but how I feel about it counts for squat.
But I must admit, it's always interesting.
Take for example the recent story on NPR about the plight of most of the college instructors in the US. Most (76% really?) are part-time employees averaging (per the story) between $25,000 and $27,000 a year. I assume benefits are nil, after all, that's one of the reasons they are not full-time employees.
Okay, so it's just the way it goes in the Marketplace.
Now check out this story about programming engineers in Silicon Valley. Many start at over $100,000 and can earn WAY more if they are extremely capable. But we know this, right? I mean with all things digital, they are HOT HOT, thus their high value.
Okay, once again that's just how it shakes out in the Marketplace. It's all about value created. Digital stuff and abilities are valued high and much of everything else is valued pretty low by comparison.
The programming engineers are getting big bucks because of two factors. First, supply and demand. As long as demand outstrips supply, prices for their labor will remain high. Second, talent and ability. And for the most talented, where productivity is really high, salaries are sky high.
So what's the big deal? Do we care (or even notice) the disparity between the part-time college instructors and professors and those in demand around Silicone Valley? Are we taking stock in what the Marketplace is telling us?
Nope. It's full bore ahead with all things digital.
John Jeffrey Lundell
PS - And the cost for higher education continues to go up, huh...