Should there be a limit on CEO salaries?
The average CEO in the 1960's made 100 times the salary of the average worker in that comany. In the 70's 500 times. In the 80's 10,000 times. The 90's and today 100,000 times.
I don't think the problem with our economy is the welfare mother with 10 kids driving a cadiliac. Do you?
2006-12-15 18:36:45 · 4 answers · asked by Anonymous in Social Science ➔ Economics
Adam Smith assumed people were greedy (self interest) but also that they were honest/ethical and did not lie, cheat, or steal. The question is does capitalism undermine the code of conduct that allow free markets to function efficiently.
In theory stock holders are suppose to limit salaries to what they think is reasonable but the system is set up to weaken their power. Change in the rules would probably work better, and some are being made.
It would take a whole lot of welfare queens to do as much damage as Enron.
2006-12-15 21:02:05 · answer #1 · answered by meg 7 · 1⤊ 0⤋
Your numbers are unbelievably, spectacularly wrong. Just put a calculator to them.
>>100,000 * $30,000 = $3,000,000,000 haha
>>500 * $30,000 = $15,000,000
Just so you know, the average CEO salary of all the publicly traded corporations is LESS than $1,000,000. You can't look at only the extremes and ignore the reality of the other thousands of companies and CEOs.
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As for Thomas Jefferson:
“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.”
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CEOs do not take my money by force. I am forced by the government for pay for welfare kids. That is not liberty.
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2006-12-16 09:59:22 · answer #2 · answered by Zak 5 · 1⤊ 1⤋
Adam Smith didn't launch an *experiment*. Smith merely observed and explained how human society behaves when it is free and not coerced into stupidity by the government.
No doubt the most harmful sin is jealously -- that's the emotion you're feeling now. Societies that succumb to this kind of envy impoverish themselves -- the evidence is quite abundant. Societies that embrace freedom of individuals and markets will continue to prosper.
2006-12-16 11:47:52 · answer #3 · answered by KevinStud99 6 · 1⤊ 0⤋
Absolutely. Thomas Jefferson knew and said that when Democracy is over-shadowed by capitalism, it will become dis-functional.
2006-12-16 02:49:45 · answer #4 · answered by Anonymous · 0⤊ 1⤋