What is wrong with this illustration? ....
Well, if the $10,000 an hour CEO is able to
expand the company, retain existing jobs with bonuses at year end, and hiring
more, then his rate is justified. In contrast, another CEO gets $1,000 or $400 an hour, and the company goes bankrupt,
the workers who get $8 or $10 an hour will soon get $0 an hour. The latter is not exactly a helpful model of a CEO for the rest of society.
An entrepreneur who has empowered some people who used to earn nothing or $5 an hour somewhere and was hired at $8 an hour, will
soon become a criminal, a law violator, if he does not give the mandatory,
government-dictated minimum of $10 an hour or higher. Mentioning a CEO who
earns $10,000 an hour is the trigger to justify and institutionalize a higher
and ever-rising mandated minimum wage.
We should respect individual decisions.
Many in the haves take the me, me, me only perspective. But even some have-nots also exhibit the same attitude. The time they
spend on political lobbying is 5x or 10x larger than the time they spend on
getting real work or do micro-entrepreneurship. With political lobbying, via their votes during elections, they can get
regular cash allowances, free healthcare, education, tractor, subsidized
housing, etc.
If a CEO earns $20,000 an hour and gives away to charity
$15,000 an hour equivalent, is it still a problem?
That Seattle CEO is cool. There are many CEOs who
do more than him. Like the CEO of Burger King who has nearly $2 billion in
wealth and income but owns no car, no house, no watch, and intends to give away
at least half of his money someday to charity.
About Manny Pacquiao's huge pay in his fight against Mayweather this Sunday despite only six months preparation, well, no one can become a Pacquiao within 6 months, or 12
months. Pacquiao reached his current throne after 15 or 20 years or more in the ring.
Besides, if one will count the number of people working for him -- head coach, asst
coaches, conditioning coach, sports physicians, asst trainers, masseurs,
dieticians/cooks, bodyguards, etc. -- the number is big. And all of them are paid not by Bob Arum but
by Pacquiao himself.
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See also:
Inequality 21: Marx, Keynes and Pikkety are ideological soulmates, December 01, 2014
Inequality 22: Ten Men Eating Equally but Paying Unequally, February 27, 2015
Inequality 23: On Poverty, Agriculture and Motorcycles, March 10, 2015
Inequality 24: Inheritance, Poverty and Envy, April 17, 2015
"Besides, if one will count the number of people working for him -- head coach, asst coaches, conditioning coach, sports physicians, asst trainers, masseurs, dieticians/cooks, bodyguards, etc. -- the number is big."
ReplyDeleteAside from those working for Pacquiao and the promoters, its also interesting to count the number of other businesses (and of course, workers in these businesses) that indirectly benefit from boxing and other sports. Particularly the pay-per-view providers, and even restaurants and cinemas all over the world that avail of the pay-per-view for showing to their customers.
Thanks Dino. Good pints, cheers.
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