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Quick rebuttal:
No offense, but I don’t understand why one would systematically assume that more talent is more rewarded.
In your example, you seem to assume that since an English translation allows for a bigger translation budget, the translator, better paid, will necessarily be better. I can understand the logic, but it appears to me you’re missing a few points.
First, there are internal dynamics to the world of translation. For instance, it is a low-pay job (or even side-job) for most, so some people will try to grab whatever work they can. Besides litterary translation is very hard to get into, the market doesn’t allow for much competition because once an author has found a translator, it will be hard to have him change, even if the quality is so-so (due to the style of writing readers get used to).
Then, there are much more people who can translate into English than people who can translate into Dutch. If one could argue for the competition it creates (and the talent it favors), I would rather argue for the reverse effect it has on the translator’s potential wage (which is not necessarily calculated from royalties by the way, if I’m not mistaken) : there are more translators than there is business for translation.
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