The way teacher pay works in Memphis and across U.S. is simple—teachers come in at a base salary (in Memphis it’s about $40,000 a year), and they get a raise every year, and teachers with master’s degrees and PhDs earn a little more. Supporters of this system say it is fair and equitable, but some education reformers and economists think the way we pay teachers in the U.S. is inefficient, and nationwide that’s where most of the money in public education goes.