I can see both sides of the argument here:
-on the one hand, just because a person doesn't understand a piece of art doesn't make it garbage. The artist obviously had some kind of meaning or intent when they created a work, no matter how silly it may seem to someone who is not versed in art history or appreciation. And once a piece of art makes its way out into the world, critics can add additional significance that adds to the value. How much an individual can appreciate all of this depends on how much time and thought they are willing to devote to art, and the more knowledgeable you are ups your credibility in judging how much a giant balloon dog is worth.
-however, I can also see the distrust that the general public would have in assigning such large dollar values to something that doesn't necessarily show technical skill (like a giant balloon dog assembled by assistants rather than the actual artist). The world of fine art (or modern art, whatever) seems like a very obnoxious place when you're working a 9-5 job and worrying about heating bills.
Here's my only question and, again, the only art appreciation education I have is from a few classes back in college. Are there any examples of artists who create modern art who are true outsiders (did not go to art college, etc)? For example - the fellow who painted a canvas entirely blue - I wonder if a plumber would be able to paint a blue rectangle and sell it for large amounts of money? I get the feeling that the "I could paint that!" crowd COULD very well paint a canvas blue, but they don't have the background in art that would make people a) take them seriously and/or b) give the plumber the necessary verbiage needed to assign meaning to a big blue square.
Again, I personally do not know the backgrounds of the vast majority of artists, so I'm sure there are examples out there of "normal" people breaking into the art world. Hit me with that sweet, sweet knowledge GAF.