Giantaxe

The jury's out on that one. Some studies have said that; some have concluded that by putting a floor on wages, it increases demand in the economy as people typically spend all of their income at those wage levels.

There's a bunch of papers here:

http://www.irle.berkeley.edu/research/minimumwage.html

fatbrit

You assume that a person earns money in a vacuum. I suppose some people do, but it's quite unusual. Mrs FB for example works solely for herself: she buys materials on the open market, adds value to them thorough her labour and skill, and then sells the final product or rights to it on the open market. Her product is a luxury, not a necessity. There should, indeed, be no limit to what she can earn.

The guy with the crazy salary I quoted earlier, however, is the CEO of United Healthcare. Healthcare is not open, is a necessity, and the CEO works with many of thousands of other people within the company to allow it to function.

Stepping over the lack of openness in the market and necessity for folks to be given access to healthcare (both big issues!), I believe he should have no limit to his earnings, either. However, that remuneration cannot be solely on the backs of his co-workers. He earns 20 times, 30 times or even 50 times what the cleaner of his office does, fine! He earns 10,000 times as much and we have a very big issue.

HumphreyC

Aye that's true. But even then we still aren't quite into Private Baldrick territory given the other help on offer.

Wow - I knew those were a delicacy in South America but I didn't know you could buy roasted ones in Newark. I used to have 3 guinea pigs growing up called Lenin, Stalin and Trotsky and to be honest they were rubbish pets (2 of them copped it pretty quickly and the cat ate the last one). Perhaps I would have been better sticking them on the Barbeque.

ian-mstm

I agree 100%.


Those who decide such things, have decided he has the skills and abilities to warrant that sort of salary. If the cleaner has those same skills and abilities, then I submit his life is being wasted and he should look elsewhere for work.

There's also the other side of the coin... people like me, who are sitting at the top of Mazlow's Heirarchy. I work because I want to and because I enjoy what I'm doing - the pay isn't great, and I could get 2x or 3x as much in the private sector... but I'm content applying my skills at this level. I enjoy the interaction with my coworkers and with our graduate students. I've gone back to school myself, because I can. I don't need a PhD to further my career, and I'm fully qualified for what I do... but I'd like to get a PhD anyway.

Don't get me wrong, I think it's tragic that people can't make ends meet... but many (although certainly not all) of those people have unrealistic expectations. They believe they should be paid more than they're skills are worth, and then they whine about the inequities of life because they're unwilling to face the truth about themselves.

Ian

fatbrit

And who are those who decide such things?

nethead

Exactly, who decides what someone's skills are worth, why shouldn't a k-12 teacher earn the same as a CEO?

MrBaker2011

I'm not sure how comparable the two are in business terms as one has the potential to earn a corporation millions in profits and the other doesn't, although the teacher may arguably perform a more socially and societally (is that a word...) beneficial job.

This does raise the point of whether a persons earnings should be based purely on creating wealth, or on a person's ability to improve society, the environment etc..... Unfortunately money making is the key (and often only) in these things.

Perhaps more approriate to compare workers within a single company.... There is a hierarchy for a valid reason (I guess....) and yet the people at the top can't exist without the pee-ons who actually do all the work - that is what smarts for the average worker - all the hard work for none of the reward

nethead

But the teacher could teach the child the skills or give the inspiration to go on and make millions. Personally I don't believe it should be assessed only on the ability to make money.

ian-mstm

I'm guessing, since he's a CEO, that the Board of Directors decides such things.

Ian

ian-mstm

The individual decides what his skills are worth. If he chooses to work for an employer that pays less than that, that's his choice. If he can't stomach the salary, he can go into business for himself.


As a former K-12 teacher, I'd very much like to have been paid the same as a CEO... but I chose to accept what the Board of Education was willing to pay me.

But since you brought it up... for the answer to why a K-12 teacher doesn't earn the same as a CEO (much as I believe they should), one need only look at how schools boards are funded.

Ian

MrBaker2011

Essentially, that is what I was getting at. Sadly this is more than a little ideological - the world can't work that way as the money to pay the teacher has to come from somewhere, and unfortunately there is very little we can do to change that. Maybe the teacher should get a bonus if the kid they teach becomes a millionaire....

ian-mstm

On the contrary, their paycheck is their reward. That is what they traded their skills for. Those who enjoy what they're doing understand that. Those who feel they sold out, are angry with themselves for accepting less than they believe they're worth. But instead of being mature and accepting responsibility for their actions, they whine about the inequities of life to all and sundry. They can either live with their situation, or work to improve it... their choice.

Ian

garfro

maybe not but you sound like one, probably because you live in Kentucky and are surrounded by them.
and dont even get me started on what a drain your state and others are on society..... (real americans HAHA)
when you dont really matter
what do you make in Kentucky that benefits anybody?
Cannon fodder for endless wars!!!

garfro

dont forget the Cadillac healthcare package!!!

MrBaker2011

This is true, it is a free market economy. But when you are in that position it is difficult to appreciate.

Unfortunately, our society has got to a level where too many want what they can't afford and feel that they have a right to it.