Oh man, here we go again haha.

I'm an econ grad student. This along with the broken window fallacy are probably the two most common errors i see weekly.

A fallacy is defined as a deceptive or misleading notion/belief. On a worldwide economic scale, saying "x is overpaid/underpaid" you are absolutely slaughtering any type of rational thought involving cost of living, governmental assistance programs, social welfare programs, etc.

Let's look at Sweden and India. Sweden has a high cost of living and India low. An Indian peasant makes less than $2 a day, whereas a Swede could make hundreds a day AND have state sponsered medical insurance, life insurance, disability, free college etc. If an Indian was offered a job in Sweden for 50cents, he would take the deal. Why? Because he would have college for his children, access to homeless residency programs and food, and would have life insurance/medical which is a huge marginal benefit over his current life in India for him and his kids. Does this mean the Swede citizen is overpaid and no one should make more than 50c? No, any semblance of rational thought would tell you that is not how an economy is meant to function.

This is a large scale example. The same fallacy applies to small scale. Many Mexican individuals would willing take a job making 50c if it meant they could escape violence and get the social security nets in the US. Does this mean all low-end jobs in the US should pay 50c? No.

Thus, the notion that one is "overpaid/underpaid" WHEN NOT considering political borders is a fallacy. Agaiin... One more time - this only applies when you are looking at multiple independent countries and not accounting for different wealth/structures/stability in the societies.