Reply to My car dealer charges more per hour for labor than I do

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]…and I’m a doctor. 
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So? Only a physician would be this arrogant. [/quote]

This isn’t about IQ. It’s not arrogant to think that a grueling and highly selective admission process, 8+ years of post secondary education, another 3-7 years of training, and a post college education that costs $400K, requiring sacrifices most won’t make and doing something few can do, would earn a higher hourly wage than a high school graduate with on the job training.

Maybe next time you or your child is  seriously ill, ask a mechanic?[/quote]

Mechanics actually have a fair bit of sophisticated training these days...to diagnose and work with troubleshooting the issues with complex electrical components, to diagnose programming code related issues, and to work with the high voltage electricity of EVs.  In some cases, surgeon-like dexterity is needed to repair components without causing additional damage (assembly and reassembly).

In any case, the service fees are not just compensating the technician.  The dealerships make most of their money on service rather than on new car sales.  Therefore the service business really has to fund the entire glittering showroom world where you select your choice of vehicles.  This distorts the price of service from the cost to provide it.  One thing you are definitely paying for in your service fees is the high cost of real estate and the showroom facility (or more broadly the cost of operating a full-service dealership near your expensive home).

It always seems to me that at the end, white collar people don't like when blue collar people earn more than them (or "more" than they think is appropriate).  Even though we could have chosen that path.  Isn't it rational to exploit labor market imperfections?  Why is anyone owed or why does anyone deserve a certain hourly rate?

Mechanics are more useful than most of the management consultants I've been exposed to lately, LOL.
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Labor market imperfections usually tend to correct with time if they are truly imperfections.  e.g.  the jobs with easy entry point, no need for expensive education or good connections or rare abilities/skills all of a sudden pay more than those requiring all of the above.  This can happen due to shortage, but market is efficient, and this gap tends to close quickly if it's easy enough for many to do the job and getting skilled. I am not entirely convinced if this is an imperfection and is due to shortage, I think hourly rate for skilled labor had always been on a high side.  People in education requiring fields are often oblivious to this and some look down upon these occupations and don't care to find out.[/quote]

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