Sunday, June 19, 2005

CEO Pay Still On Steroids

One of the fundamentals of economics is that increases in wages increases inflation, thereby threatening economic growth. And, of course, economic growth is one of the golden calves of the capitalist system. The notion is that unless the economy is constantly 'growing' a society cannot fund its development. That's basically why increases in wages (not necessarily real wages, but any nominal increase) are always so small. Our economy cannot afford significant, radical increases in wages. Despite that, I doubt CEOs are factored into the calculations.

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