Why We Should Either Cap CEO Pay or Redistribute It

Why We Should Either Cap CEO Pay or Redistribute It

“Increasing inequality is not the inevitable consequence of some “natural law.” It is a result of the rules society has set for the economic game — rules we can change. Economist Paul Krugman points out that at the beginning of the Great Depression, income inequality, and inequality in the control of wealth, were very high. Then came what he calls the great compression between 1929 and 1947. Real wages for workers in manufacturing rose 67% while real income for the richest 1% of Americans fell 17%. This period marked the birth of the American middle class. Two major forces drove these trends – unionization of major manufacturing sectors, and the public policies of the New Deal.”

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s