I define lefties as people who impute evil and bad motives to business owners and other successful people. You did that with " employees are seen as an expense that needs to be minimized". This is often the case, but not always, and less now than 100 years ago. With "maximum income ratio", both the need for incentives and the need for equality are addressed. With a guaranteed minimum wage, there is the constant risk that a business will go bankrupt; businesses cannot hire people who would otherwise add value to the business but not at the level of the minimum wage, so the people don't get hired at all. And the CEOs just keep on keeping on, increasing their income at the same rate as the percentage of raise in the minimum wage increased the wage of the entry level worker. With the minimum wage, equality is never addressed.
My son just started work about 2 months ago at a fast food joint. Although we are very glad he just got a 12% raise, we also know that the raise will come out of the pockets of the customers, and if the customers don't like the increase in the price, they will go elsewhere and my son could be looking for work elsewhere. "Looking for work" doesn't pay very well, if at all since he has only been working there for 8 weeks. I voted for the increase, but I think that "maximum income ratio" is a much better idea. But since when did the American people go to a much better idea?
A better way would be the "maximum income ratio". This means that the ratio between the highest paid employee, presumably the company CEO, divided by the lowest paid employee would be some fixed ratio, less than the current absurd ratios that we see now. Some really absurd ratios are like 360 to 1 in the USA. In Japan we see numbers like 10 to 1. I think that 12 to 1 or 20 to 1 would be healthy ratios.
This would preserve incentive while giving some semblance of equality. With minimum wage, some businesses just go out of business and the people on the top just keep giving themselves raises. In our society, no worker is 360 times more valuable than any other worker. Unlike lefties, I recognize the value of decision making, risk taking, and other CEO activities. But 360 times more important? That is obscene.
They have to give us that award or else we'll nuke 'em. (:->)
All content © Copyright 2017, The Colorado Springs Independent
Website powered by Foundation