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> I don't think the market is wrong. But the market can be wrong! In many situations. In fact, it's only "right" under the most ideal of circumstances, perfect
by geysersam 4y ago
> I don't think the market is wrong.
But the market can be wrong! In many situations. In fact, it's only "right" under the most ideal of circumstances, perfect information, perfect competition etc.
Then there's the question about what kind of right we're actually talking about here. To an ideal market, right is distributing resources to optimize profit. But if some people are less profitable than others, that clashes with other, arguably more natural, notions of "right".
- monero-xmr 4y agoI don't think the entire market is off by an order of magnitude for a huge group of people. There is a competitive market for competent CEOs and the pay reflects supply and demand. Again, if you want to go throw your hat in the ring, be my guest. Clearly it's very easy to a lot of people here. Good luck
- gwbrooks 4y agoI grant your point: Given imperfect information and imperfect competition, the market for top-tier CEO compensation is probably wrong by some factor. Even if we agree with that, then what? Put another way: Who has a greater right than the equity holders of those companies to set CEO pay levels/limits?
- geysersam 4y agoFrom the article (approx. quote) > compensation to the top 25 hedge fund managers equal the combined salaries of all kindergarten teachers in the country Those are people who deserves (have the right) to be compensated better for their work. It's a failing of the market, the system, a moral and cultural failing that they are not. I refuse to belive we can not tweak our economies to value peoples work more fairly.