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Damn, why did people create companies for the past 300 years ? Why did people become entrepreneur ? They didn't have anywhere close to 400 times their workers s

Damn, why did people create companies for the past 300 years ? Why did people become entrepreneur ? They didn't have anywhere close to 400 times their workers salary, must have been a miserable life What's the point of it all when you have enough money to sustain your entire genealogy tree from the birth of earth to the heat death of the universe ? These people are clinically ill

ajsnigrutin 4y ago
How many companies in the last 300 years were as large as amazon or walmart? A local hairdressing salon owner/director doesn't earn a lot more than the employees there. Maybe it's time to disincentivize huge companies in favour of many smaller ones.
- jandrese 4y ago
  > Maybe it's time to disincentivize huge companies in favour of many smaller ones. That's a fight directly against market forces. It's exceptionally difficult to fight the market and usually quite unpopular.
- robocat 4y ago
  > A local hairdressing salon owner/director doesn't earn a lot more That is linear thinking, however income is very non-linear. In New Zealand minimum wage is ~$800 for 40 hours and you might have $100 disposable income after living expenses. Let’s say the owner gets $1200 at the end of the week. Their disposable income has increased by wayyy more than a 1:1 ratio. That is why you really care about a $0.50 pay rise if you are working near minimum wage, because it makes a huge difference to your marginal disposable income. If you are “normal” minimum-wage then you compete for rental properties against all other normal people, so costs rise to soak up disposable income. A similar dynamic occurs for most people in middle/professional income levels - people compete against each other to pay as much as possible of their income on their mortgage and so they also don’t end up with as much disposable income as you might think. You probably know people in the 1% income bracket that are struggling to make ends meet due to that reason (they are way better off, and have far more disposable income and savings, but not as much as one might naively assume).
jokethrowaway 4y ago
Tech driven automation is creating opportunities that didn't exist before and there is way more competition. CEOs have a crucial impact on company and are paid in stocks. Does this article and related figure accounts for all the failed startups CEOs whose stock turned out to be worthless?
- bastawhiz 4y ago
  Your first two points have no evidence to support the notion that CEOs need to be paid as much as they are. Your third point is useless because all of the employees also got shafted.
- lm28469 4y ago
  I want to say: so what ? Getting paid 50 times your employees isn't enough ? You need to get paid 400 times their salary ? Why stop there ? 800 times ? The invisible hand doesn't exist and without regulations these things will get worse and worse
  - _fat_santa 4y ago
    It's the STOCK PRICE. Say you get 100 shares of a company at a value of $100/share every year you are CEO, that's a pay of $10k/yr. Now say the value goes up to $1000 because you helped get your company there. And now all the people come out of the woodwork to tell you how greedy you are.
    - lm28469 4y ago
      But again that's just what we collectively agreed on, not a God given law that we have to keep forever, we could come up with other mechanisms If you can't see the difference between early capitalism and the monster it became that's another problem

ajsnigrutin 4y ago

How many companies in the last 300 years were as large as amazon or walmart? A local hairdressing salon owner/director doesn't earn a lot more than the employees there. Maybe it's time to disincentivize huge companies in favour of many smaller ones.

jandrese 4y ago
> Maybe it's time to disincentivize huge companies in favour of many smaller ones. That's a fight directly against market forces. It's exceptionally difficult to fight the market and usually quite unpopular.
robocat 4y ago
> A local hairdressing salon owner/director doesn't earn a lot more That is linear thinking, however income is very non-linear. In New Zealand minimum wage is ~$800 for 40 hours and you might have $100 disposable income after living expenses. Let’s say the owner gets $1200 at the end of the week. Their disposable income has increased by wayyy more than a 1:1 ratio. That is why you really care about a $0.50 pay rise if you are working near minimum wage, because it makes a huge difference to your marginal disposable income. If you are “normal” minimum-wage then you compete for rental properties against all other normal people, so costs rise to soak up disposable income. A similar dynamic occurs for most people in middle/professional income levels - people compete against each other to pay as much as possible of their income on their mortgage and so they also don’t end up with as much disposable income as you might think. You probably know people in the 1% income bracket that are struggling to make ends meet due to that reason (they are way better off, and have far more disposable income and savings, but not as much as one might naively assume).

jokethrowaway 4y ago

Tech driven automation is creating opportunities that didn't exist before and there is way more competition. CEOs have a crucial impact on company and are paid in stocks. Does this article and related figure accounts for all the failed startups CEOs whose stock turned out to be worthless?

bastawhiz 4y ago
Your first two points have no evidence to support the notion that CEOs need to be paid as much as they are. Your third point is useless because all of the employees also got shafted.
lm28469 4y ago
I want to say: so what ? Getting paid 50 times your employees isn't enough ? You need to get paid 400 times their salary ? Why stop there ? 800 times ? The invisible hand doesn't exist and without regulations these things will get worse and worse
- _fat_santa 4y ago
  It's the STOCK PRICE. Say you get 100 shares of a company at a value of $100/share every year you are CEO, that's a pay of $10k/yr. Now say the value goes up to $1000 because you helped get your company there. And now all the people come out of the woodwork to tell you how greedy you are.
  - lm28469 4y ago
    But again that's just what we collectively agreed on, not a God given law that we have to keep forever, we could come up with other mechanisms If you can't see the difference between early capitalism and the monster it became that's another problem