07/29/10 (LWN-Commentary) Excessive salaries in the U.S. public and private sectors bear significant responsibility for high insurance, property tax, tuition, and other costs. Such salaries also increase the prices of many products and services unnecessarily.

EDUCATION

According to the Bureau of Labor Statistics and the Educational Research Service, high schools pay their principals an average of $97,486 per year. Even the average salaries of elementary school assistant principals top $71 thousand.

In universities and colleges, individual instructors often earn more than high school principals. According to the BLS and the American Association of University Professors, the average full-time college professor makes $108,749/year.

As would be expected, the administrators of these institutions are paid even more. The Spokesman-Review reported in January that Washington State University's vice-president of economic development is paid $270 thousand dollars each year.

HEALTHCARE

Many people in the health care industry receive excessive salaries, regardless of whether they work for a "non-profit" hospital, an insurance company, or a drug manufacturer. Politicians (themselves overpaid) remain reluctant to address this problem as part of their efforts to promote "affordable healthcare".

Often the administrators of hospitals are paid particularly large sums. For example, the Ventura County Star reported that several local hospital administrators received yearly pay ranging from around $500,000 to over a million dollars in 2008.

EXECUTIVES

The chief executives of many companies are paid huge salaries extending into the millions of dollars. Even including smaller firms, the average pay of chief executives in the United States is equivalent to $80.43 per hour. People have to contribute to their pay when buying groceries, heating fuel, clothing, and so many other items.

Excessive salaries also harm other employees of the companies or institutions they work for. When a CEO, president, or principal is paid excessively, other people become more likely to lose their jobs or receive less pay, so that the budget can be balanced.