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All this talk about supply and demand and compensation for risk is a load of bullshit. The salary of people higher up in an organisation is not higher because
by jakobegger 11y ago
All this talk about supply and demand and compensation for risk is a load of bullshit.
The salary of people higher up in an organisation is not higher because they are so brilliant; it's higher because these people can decide how to distribute the money.
This is true in all areas of the economy. People who are close to the money will always make more than people who do the work. A realtor will earn a lot more from the sale of a home than the plumber who laid the pipes. The outsourcing agency will earn significantly more than the workers who end up doing the job. Temp agencies have a markup of more than 100% on the salary of their temporary workers.
All that talk about "negotiation skills" and "compensation for risk" is just bullshit that people tell themselves to justify a higher salary. Why is it so hard for people to accept that they are lucky to earn so much? Why do people always have to find an excuse why it's only fair that they earn more than others?
We're all grown ups, we all know that the world isn't fair. There's no need to come up with elaborate explanations why pay inequality is a good thing.
- zo1 11y ago>"Why do people always have to find an excuse why it's only fair that they earn more than others?" Because we get accusatory comments from people, and people demand "justification" from us. When you blame/accuse people, they go on the defensive and start trying to justify it to you, and I guess to themselves as well if they internalize the blame.
- Patient0 11y agoIf you read closely what I said, I wasn't really disagreeing with you. You are attacking a "straw man": I never said the result is fair (quite the opposite!), or that the people who earn higher salaries do so because they are brilliant. You made one valid critique of what I said: I agree with you that many (maybe even most) "ridiculously rich" people probably benefited from nepotism, crony-ism and general corruption. There are plenty of examples in non-capitalist societies too (Soviet Russia, Venezuela, Cuba).