by Ray Keating
So, forget about Bryce Harper and that $330 million contract with the Philadelphia Phillies. According to assorted news reports, outfielder Mike Trout has signed a 12-year extension with the Los Angeles Angels for a breathtaking $430 million.
Well, if anyone in baseball deserves the highest contract, it would be Mike Trout – the best player in the game today.
Now, this deal actually touches on two aspects of my own career – as an economist and as a novelist.
Trout and Economics
Let’s first consider the economics. Many people inevitably will – if they haven’t already – complain about paying a baseball player $430 million, while teachers, cops and assorted other “more important” professions get paid a fraction of that – indeed, a tiny fraction. The problem with this thinking is that it ignores basic economic principles, such as supply and demand. It’s more about feelings rather than economic realities. After all, water is far more important than a bottle of Dom Perignon, but guess what costs more?
Consider that compensation is about productivity, and demand relative to supply. Productivity and skills vary widely. If one possesses highly specialized skills, this will lead to better pay. And compensation will be driven higher if those skills are in high demand. Likewise, the more productive an individual is, the higher that person’s earnings. Skills and productivity are affected by natural talent, work ethic, and investments made in human capital. Those investments can take the form of education, practice, experience, and knowledge.
Economists refer to the “marginal revenue product” of a worker. That essentially means that the greater a worker’s contribution to a firm’s revenue, due to productivity and skills, the greater the compensation.
So, few people on the planet possess the abilities to be among the very best in Major League Baseball. For good measure, consumers willingly spend billions of dollars enjoying Major League Baseball each year. Therefore, people like Bryce Harper and Mike Trout are extremely well compensated.
Trout and Murderer’s Row
Okay, now what about being a novelist? Murderer’s Row: A Pastor Stephen Grant Novel is a mystery/thriller taking place amidst minor league baseball on Long Island. Pastor Stephen Grant and a few clergy friends find themselves serving as team chaplains, and they have the opportunity to shag some fly balls with the team on Opening Day. Here’s what happened:
They looked in at the pitching coach tossing another fat batting practice fastball, and Blue launching the ball high and deep.
It was Stephen’s turn. “I’ve got it.” He turned and ran toward the six-foot centerfield fence. Grant looked over his left shoulder, picked the ball up in the sky, continued his strides, glanced one more time at the warning track and wall, and then back at the quickly descending ball. At his second step on the dirt and gravel mix of the warning track, he jumped. Using the top of the wall, Grant pulled himself up higher with his right hand, and fully extended his glove into the air. The ball landed in the mitt. The momentum of the fly ball took Grant’s forearm over the wall. Descending to the ground, he pulled the glove back with the ball resting firmly in the pocket.
Grant held the glove up as he felt a wave of elation sweep over him.
Shouts of approval came from around the field.
Zack called, “Sweet catch!”
With the bat still in his hand, Brodie Blue walked past the pitcher’s mound, stopped at second base, and pointed at Grant. He yelled, “Who do you think you are, Mike Trout?”
Assorted Surf Kings latched onto that, with calls of “Nice, Father Trout” and “Father Trout’s the man,” along with a “Blue robbed by Father Trout.”
Grant was still smiling as he tossed the ball back into the infield.
Hey, it’s not like I’m making Mike Trout money, so any opportunity for a plug, I’m grabbing it.
