Why not a maximum wage?

Thomas Porter
June 11, 2009
1
Summary: 
The most prosperous times in our country were during the 1950s and 1960s, when CEOs made 20 times what the frontline employee made – instead of 300 times today.

It always amazed me that CEOs would get bonuses for implementing massive layoffs. Increasing productivity they called it. The bonus usually amounted to the sum of the wages of all the people laid off. And they lost the people who actually made money for the company.

If a company wants to cut labour costs, wouldn’t it make sense to layoff the people at the top first? But no golden parachutes, please.

The most prosperous times in our country were during the 1950s and 1960s, when CEOs made 20 times what the frontline employee made – instead of 300 times today.

If we have a minimum wage it makes sense to have a maximum wage. This whole idea of “star” executives is bogus. As they tell their underlings when negotiating pay raises, nobody is indispensible.