Civilizing the Economy A New Economics of Provision

Connecting the Dots

Posted May 8, 2010 by Marvin Brown in Uncategorized, 9 Comments

How about this as a TV game show:  “Connect the Dots.”  For example, how would you connect the fabulous salaries of professional athletics with the deterioration of our public schools?

A future Hall of Fame linebacker for the 49ers just signed a multi-year contract for as much as 50 million dollars.  This was announced in the same paper that has continually reported on cutbacks and layoffs in our public schools.  So, what’s the connection?

One has to ask the right question.  If we ask whether the linebacker deserved the money, we don’t get very far.  Who would not ask for whatever he or she could get?  A better question is how did the 49ers get that kind of money?   Well, there are various sources, of course, but about 2/3rds of the money comes from TV deals.  In 2006, contracts with the three networks, CBS, Fox and NBC, awarded the NFL with an average of $2 billion a year until 2011.  So, a large chunk of the money comes from selling programming to television, radio, and other outlets.

And where do these outlets get that kind of money?  From advertizing.  Remember the cost of 30 seconds during the Super Bowl? One million dollars.  So, TV producers have the money to pay the football teams—that then have to money to pay those fabulous salaries—from the corporations that buy advertising on television and radio.

Well.  “Where did the corporations get that kind of money?”  From their profits.  But profit is simply what is left over from one’s income after the bills have been paid.  So to have enough profit to spend billions on advertising, either the income is really high or the costs are really low.

It turns out that some of the costs have remained low or even decreased, while income, in some cases, has increased.  The costs have remained low—in part—because worker’s wages have not really increased since the 1970’s even though worker productivity has increased due of new technology.

Also workers (in the United States) are working longer hours, and corporations are paying fewer taxes than they did before.  Fewer taxes, of course, have left states without the finances to maintain quality public schools.   (Decades ago, corporations paid about 40% of the federal income tax, today they pay about 6 %.)  So, the kids in public schools are getting less so professional football players can have more.

Or to put it another way, instead of increasing worker’s salaries or paying taxes, the corporations are using billions for advertising, which gives lots of money to television, which in turn gives lots of money to football teams, who then have the money to pay 50,000 million to a linebacker.

If we could learn how to connect the dots, we would have a good chance of understanding what is happening in our economy.

9 Responses to “Connecting the Dots”

  1. trey songz for the sake of our love lyrics says:

    May 9, 2010 at 1:21 pm

    This is a good post, I stumbled across your article while looking for downloads. Thanks for sharing, I'll be sure to return regularly.
  2. student loan says:

    May 23, 2010 at 12:38 am

    Wow this is a great resource.. I’m enjoying it.. good article
  3. ne yo beautiful monster says:

    May 26, 2010 at 12:29 pm

    Thanks for sharing, I found this article while looking for popular lyrics, useful comments and great points made.
  4. kylie minogue all the lovers says:

    June 8, 2010 at 11:57 am

    Hey this is a great story. I'm going to email this to my buddies. I stumbled on this while surfing for some lyric updates, I'll be sure to visit regularly. thanks for sharing.
  5. Fred Slay says:

    July 12, 2010 at 11:50 pm

    Hello, possibly this is a bit off topic but in any case, i've been surfing around your website and it looks truly great. It is easy to see I'm building a new blog and I am struggling to have it look great, and supply good quality articles. I have learned a lot here and I look forward to additional updates and will be returning.
  6. Trinity Dorn says:

    July 29, 2010 at 7:10 am

    Good job!
  7. free anti-virus software says:

    August 7, 2010 at 9:50 pm

    did you vote for obama? be honest
  8. party supplies says:

    August 10, 2010 at 9:56 pm

    Fantastic blog! I genuinely love how it's easy on my eyes as well as the details are well written. I am wondering how I might be notified whenever a new post has been made. I have subscribed to your rss feed which need to do the trick! Have a nice day!
  9. Willetta Delross says:

    October 16, 2010 at 12:49 pm

    Finally, I proven the information I was looking out for. We've got been having out assignments on this topic, and for 4 days I preserve obtaining web-sites which are intended to have what I am hunting for, only to become disappointed using the absence of what I wished. I wish I could have identified your web site sooner! I had about 25% of what I utilised to become in need of and your internet site has that, plus the remainder of what I necessary to end my researching. We have now activated to this web page correct here I like that you just will discover authentic write-up information that you will be capable to hardly discover elsewhere. A single beneficial thing, you probably can get hold of nevertheless these kinds of information sites, ensure you go on! I can no more lengthy see the well-liked media. It can be there a great deal rubbish printed, I bear it no much extra rapidly. A certainly pleasant weblog and beneficial write-up. I invest nights inside the globe broad world-wide-web learning blogs, about tons of many subjects. I have to initial of all give kudos to whoever set up your websites and 2nd of all to you for composing what i can only describe as an post. I honestly imagine there is a capacity to writing content articles or blog site blogposts that only several posses and frankly you might have it. The combination of educational and superb content material is unquestionably exceptionally tight utilizing the huge volume of web throughout the online world.Usually maintain a incredibly very good give good results!

Leave a Reply

*

Marvin T. Brown, Ph.D teaches business and organizational ethics at the University of San Francisco and Saybrook University in San Francisco.

This book is the culmination of 30 years of teaching and writing on business and society from a communicative perspective. Visit workingethics.com for more information.

Adam Smith Atlantic trade banks biosphere citizen Citizens United city civic civic conversations civic economy civic membership civilizing the economy common citizen Commons corporate citizen corporation as property corporations democracy disagreement economics of dissociation economics of provision Egypt future health care reform invisible hand John Locke Kant libertarianism membership money moral equality ownership property property relations protection reciprocity Scotland slavery Smith and slavery Smithian economics sustainability taxes the civic tobacco trade Wall Street

Cambridge University Press
Local Bookstores
Amazon
Barnes & Noble