Here's a question: should we pay people more if they generate more value? I think most people would say yes. However, it is not immediately obvious to me. Should a driver driving a big bus make more money than one driving a smaller bus? Assuming both buses are running at full capacities and assuming utility per passenger/payload is equal, the big bus is obviously generating more value than the smaller bus. Now, similarly the smaller bus is generating more value than a taxi. By this count, there should be a severe effective penalty for being a cab driver as opposed to being the conductor on the E train. If you think this is stupid and we shouldn't pay people based on the value they generate, what do you think about the CEO at citi making huge salary and bonuses? Why do they get paid so much? We can't just say it is none of our business because it is our business. Publicly traded companies have too big of a drain due to executive pay and that's money that could be in your retirement fund!