02-17-2020, 10:41 AM
(02-17-2020, 10:03 AM)michaelsean Wrote: In the end, does it matter what the CEO makes? I assume we are pretty much talking about Fortune 500 companies. If we distribute the difference between what a CEO makes, and what we think they should make, will it make much of a difference? I think it's stockholders more than CEO pay.
One of the big reasons that there is a focus on the rise in CEO pay in comparison to worker wages is that it is one of the largest pieces of evidence that shows the whole idea of "trickle down" economics is a fallacy. In a well functioning market, an increase in capital would result in a (relatively) equal rise in revenue for all parties in the stream. This is what the whole idea of Reaganomics is founded on. However, what we are seeing is that the increase in capital is not being spread throughout the economy as is theorized. This is a market failure.
This metric can also help explain the compression of the middle class in this country and the lack of socioeconomic mobility.
"A great democracy has got to be progressive, or it will soon cease to be either great or a democracy..." - TR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
"The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those who have too little." - FDR
