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by jordanb
3704 days ago
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CEO pay has little to do with the free market and everything to do with the principle-agent problem. In 1983 the average CEO was paid wages equal to 50 average employees. Today the ratio is over 300:1. If this is the free market at work then our economy and society is doing something profoundly wrong to produce such an enormous shortfall in qualified CEOs. Clearly we need to identify what's wrong with our upper classes that they no longer seem to be able to produce qualified senior-executives. Maybe they're being educated improperly? Perhaps social problems endemic to that type of person can explain the executive skills gap? In the meantime, at the very least, we need to have a temporary guest worker program to ensure our companies aren't crippled by senior executive shortages. |
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https://en.wikipedia.org/wiki/Minimum_wage_in_the_United_Sta...
The government failed to do its job since 197x. The growing income disparity is the result of free market let run completely free by the government. It is the basic example from statistics 101 - in completely symmetric odds situation that thus looks fair at first ("free market"), the player with deepest pockets wins with higher probability. The government by not increasing minimum wage provided for much significant disparity between the "depth of pockets" and thus the resulting increasing income gap.