[jterce]

You're right. You're also slightly wrong.

Yes, labor is not exactly comparable in market terms to other products--more sticky prices, more difficulty in estimating value, etc.--but the principle and its consequences remain.

We DON'T HAVE to run PSAs to encourage people to become investment bankers precisely because there are high salaries. The salaries are the advertizement and they're incredibly effective.

As far as teachers, we don't have a shortage. We don't need more teachers, we need better teachers. How to attract those better teachers is unclear--a strictly higher salary would attract more of all caliber of teachers which would not help. I suppose commercials are thought to be one way and I think it's likely better compensation will have to be a part of it as well.