Income Inequality
- Thread starter BigRedBuster
- Start date
RedDenver
Active member
That's a GREAT question. If we knew the answer, we'd probably be using it.
However, we know just from the history of the US economy that from WW2 to the 1970's, there was far, far less income inequality than today. That's at least a start. And we know from other nations what less has resulted in less income inequality in places like Sweden, Netherlands, etc. and I think even Britain and Germany are less than the US.
And I think an easy policy place to start is a minimum wage that prevents the worst of the inequality.
Does he have a college degree? What’s his background? I’d be happy to try to help find him something better.
RedDenver
Active member
Labor that contributes to the profits of a company. Tell me all about how share holders are providing labor that generates profits for the corporation. I can't wait.
BigRedBuster
Well-known member
RedDenver
Active member
What? Companies can and do exist without share holders.
EDIT: Additionally, share holders are extracting profits from a company, not the other way around.
Last edited by a moderator:
BigRedBuster
Well-known member
No....actually they don’t.
Even private companies have shares that people own.
But.....i believe you are mainly talking about public companies.....right?
you do realize why companies go public....right?
Last edited by a moderator:
Shareholders provide the capital that makes the company’s operations possible. That capital is the result of their own hard work at their own jobs. Without that capital, the workers wouldn’t have jobs,
CEOs and other executives work their butts off. First to get through school, then to climb the corporate ladder, then to lead their companies. If the market dictates that their labor is worth 1000x or 10000x that of an entry level employee, then so be it.
RedDenver
Active member
You know that co-ops exist, right? Proving that if you eliminate the share holders (by making them one and the same with the workers), companies can and do keep functioning and making profits.
Do the workers not work their butts off? Tell me again about how profitable those companies would be with CEO's but not workers because there exist companies (again co-ops come first to mind) without CEO's.
BigRedBuster
Well-known member
RedDenver
Active member
There's a bunch of different types of co-ops around the world. Here's list from wikipedia: https://en.wikipedia.org/wiki/List_of_cooperatives
The largest where the workers own the corporation (worker co-op) that I'm aware of is the Mondragon Corporation in Spain. (75,000 workers, $12 billion in annual revenue and $24 billion in assets.) There aren't a lot of worker co-ops in the US, but you can find listings of American worker co-ops through the US Federation of Worker Cooperatives.
Ace Hardware is an American co-op you've probably heard of, but it's a slightly different version where each store owner is a share holder (as opposed to every worker).
Here's a problem with your easy policy.....
How do you think businesses at all levels react to a minimum wage increase?
If your answer is with a price increase, I'd agree.
So instead of trying to mandate wages, which will not be effective in a market driven economy, how about putting the burden on the laborer to increase their marketability?
RedDenver
Active member
The idea that minimum wage is not effective in a market driven economy isn't true. Prices may go up, but the question is really are the higher prices worth having living wages. A few examples:
The federal minimum wage has been around since 1938, and the US economy remained the strongest in the world from then until now, including the post-WW2 era of incredible middle-class growth, so it can't be that harmful to the economy.
Research shows $15 California minimum wage has big impact on pay, none on jobs.
Fast-food workers paid $20/hour in Denmark as compared to $8.60 in US (133% increase), but McDonald's Big Mac price only $5.60 vs $4.80 (only 17% increase). (Also note that Denmark has no minimum wage law but instead very strong unions that bargain for these wages, so minimum wage laws aren't the only way.)
Last edited by a moderator:
Your example from Denmark at 17% is on a $5 price point item.
Imagine if every item you purchased in a months time was raised 17%.
And I didn't say a minimum wage increase has a negative effect on the economy. The US is full of consumers at every economic level.
If prices go up, you STILL won't have "livable" wages.
Productive, skilled workers can do more for themselves than a government mandate can do for them.