Response to Expand Your Personal Value

I’m not sure who thinks there is a finite amount of wealth that exists in the universe that should be divided equally – I certainly don’t. However, a company will have a specific amount of profit or working capital to distribute among its employees. Those of us who are discussing the difference in pay between company CEOs and entry level workers in the United States are not suggesting that profits should be divided equally among them. We are pointing out that the pay gap between CEOs and workers has risen to a ridiculous degree in many top companies. 

According to a recent article in Bloomberg Businessweek, the average CEO versus worker pay ratio is now 204 to 1 (Standard & Poor’s 500 Index top 250 companies by ratio). Here’s an attachment that shows company pay ratios beginning in the thousands to 1 range. http://go.bloomberg.com/multimedia/ceo-pay-ratio/ Do you really believe these CEOs are creating more benefit to others x1500 percent? I doubt it. In the 1950s, the average ratio was 20 to 1. 

Does greed exist? Absolutely. I know you can’t possibly believe greed lurks only within government. Politicians don’t have a monopoly on greed. In your “free voluntary society,” you state that the free market would operate successfully by adding value to the lives of others. Those who are “extra” greedy will figure out how to create products that people want; no one will be around to ensure safe working conditions, uncontaminated food, etc. But no worries, all those nasty land barons, mafia gangsters, and sweatshop owners would be nothing but historical references. Without regulations, CEOs would just “do the right thing” because they’re increasing (perceived) value to the public. If the workers don’t like the conditions, they can go somewhere else; if some people eat contaminated food and a few die, well, let that be a lesson to stay away from that particular company. 

There is no place in the world that I’m aware of where such a self-governed, free and unregulated voluntary society successfully exists. The strong and unprincipled will always find ways to take advantage of the weak and powerless. We are not all created equal. There are vast differences among human beings that have to do with natural ability and circumstance. The Libertarian viewpoint of claiming and defending our property rights is narrow and narcissistic in my opinion. I believe it leads to isolationism, paranoia, and the arbitrary stance that says we can all just pull ourselves up by our bootstraps. Certainly we have the right to protect our property. But we have responsibilities that make laws and lawmakers necessary if we’re going to live in community. 

Society is complex. I believe it is myopic to train our gaze on one institution and blame that institution for the ails of the world. In order for a society to evolve and prosper, institutions should balance each other. I’m not “for” government and “against” business or industry. Cronyism and payoffs exist and will continue to exist. But principled individuals too exist within all of society’s institutions. We should take seriously our obligation to find and support these individuals within politics, business, academia, the sciences, etc. 

Finally, should Hilary Hahn (virtuoso) get paid thousands times’ more money to play for an audience than you, (non-violin player as far as I know)?  Well, no. I did some research, and I can attend one of her concerts for $85; $250 affords me a fabulous seat. Should you take up the violin and join a group; and after a short while, you call me and ask me to attend a recital, and you tell me there will be a $10 donation, I will happily attend. Not a bad ratio, right? Hell, I’ll pay $20 if I can sit up front. 

I’m being a bit facetious to prove a point. You would be hard-put to find a liberal, or progressive, who thinks that an entry-level worker should match his/her CEO in pay. Certainly the CEO or owner should be compensated for her experience, expertise, and position. But I don’t think that necessarily means she brings more value to the lives of others than the employee, most certainly not hundreds or thousands times’ worth monetarily – and maybe less in ways that aren’t measured in dollars.