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It tends to lead to pay inflation what you mean Joe Blogs is getting x

• cryptonector 9y ago
  Perhaps initially, but since there's a limit to how high total compensation can go for all employees put together... the effect will be to compress compensation differences. The same is true if it should initially lead to deflation (e.g., if total compensation is already at the limit, then some of the more highly compensated employees will have to see their compensation cut in order for less-generously compensated employees to see theirs improved). Ignoring macroeconomic effects, this should just lead to compression of compensation deltas regardless of whether it also leads to inflation or deflation. Now, if every State did this suddenly, and if transparency were required of the private sector as well, then there might be macroeconomic effects as well, such as higher inflation (or faster deflation), and I won't hazard a guess as to which.
  • walshemj 9y ago
    doesn't seem to have worked for CEO compensation