A. The perceived greater contribution that nurses make to society is an argument often given against the big wage difference between nurses and bankers.
B. This is not a perfect market in that bankers may be able to influence the market through the position they hold in society.
C. Whilst it is difficult to measure relative contributions, this does not appear a valid argument against the difference in wage.
D. There is a greater supply of nurses than bankers.
E. Aggregate supply meets aggregate demand at the market price.
F. Bankers are often seen as having a negative effect.
G. One argument to justify the disparity in wage between bankers and nurses is the market.
H. Wages do not represent the real equilibrium between labour supply and demand.
I. Whilst never perfect, markets have proved to be the most efficient method of resource allocation and market price is the closest to an expression of society’s collective will that there is.
J. Nursing is more emotionally rewarding than banking.
K. Through lending to firms, they are able to produce, hire labour and generate wealth for the whole economy.
L. Society needs fewer bankers.
M. It is unlikely that many hospitals that, of course, hire nurses would get built without bankers.
N. Bankers must be compensated with a higher wage.
O. Nurses are seen as providing an essential, often life-saving service.
P. Nurses are unlikely to be able to influence the market.
Q. Speculation and the resultant financial crash are often given as examples of the negative effect bankers have.
R. This argument ignores the important service bankers provide, perhaps because fewer people understand it.
S. Society must attract the best talent to a highly technical field.
One argument to justify the disparity in wage between bankers and nurses is the market. As in any market, price (in this case the two wages) is where aggregate supply meets aggregate demand. Firstly, there is a greater supply of nurses than bankers. This may be due to nursing being arguably more emotionally rewarding than banking. Thus, so the argument goes, bankers must be compensated with a higher wage. On the demand side, society needs fewer bankers and must attract the best talent to a highly technical field. However, it could be argued that this is a less…