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Anyone with a pet theory that says this increase is inevitable because of cause $foo (or even that this situation this is justified because of reason $bar) need
by williamsmj 6y ago
Anyone with a pet theory that says this increase is inevitable because of cause $foo (or even that this situation this is justified because of reason $bar) needs to account for the fact that the equivalent ratio of compensation in the US military is around 8.
The US military of course has a budget many times that of most (any?) private companies, and it's generally agreed to be a better run institution than a lot of them.
- Asdrubalini 6y agoThe US military is a public institution and its purpose is not to make profit, how is this related to private companies and compensations based on private money?
- williamsmj 6y ago[I assume you mean "for-profit" rather than "private". These companies aren't generally private and neither is their money, but...] Exactly?! People in this thread and elsewhere say this is inevitable because of "globalization" or "automation" or "increasing scale of operations" or "increasing concentration of authority" or similar things that apply equally to the US military. The actual reason for this compensation disparity, which exists in large for-profit companies, and doesn't exist in one of the biggest organizations on earth, measured by budget, is capitalism and the market. The fact that the US military is not a for-profit company is the point. If you view this disparity as a bad thing, then you have to accept that the corollary: you might, just maybe, have a problem with free market capitalism. Welcome to the club! :)
- Asdrubalini 6y agoI don't see disparity of compensation an issue, especially if companies are enormous like these and for profit. The job of a CEO in a company with 20 employees is quite different than the job of a CEO in a company with 100000 employees. On the other hand, the job of those employees is often the same (especially for low pay jobs), this is why you see this discrepancy. The only issue I see is when salaries are too low for the job, or when companies tries to prevent workers from unionizing.