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Nobody is penalized anywhere - it caps how much greed can net you It means that if you're in the business of strawberries then your overall value is tied to th
by AndrewKemendo 4y ago
Nobody is penalized anywhere - it caps how much greed can net you
It means that if you're in the business of strawberries then your overall value is tied to the relative increase in value of a new strawberry producer. and the accompanying competitive labor rate. There's likely an equilibrium between relative wages across an industry given this constraint.
Aka if you want to start a strawberry farm you're never going to be a billionaire. If you're in manufacturing your overhead is higher, so wage inputs are higher, so you'll never be a billionaire but your employees will be better off than they were in a regime where you took the majority of the ownership.
But I'll let you define what would be a "fair" way for you
Limiting and checking power is the entire purpose behind democracy
We should do everything we can to eliminate the possibility of outsized ownership of any productive capacity. Diffuse power is the best kind.
- gruez 4y agoI think we're arguing over different things. I'm not arguing against the concept of CEO pay caps in general, only the specific proposal of capping CEO pay by the lowest paid employee.
- AndrewKemendo 4y agoTo be clear it’s not a cap on the CEO specifically it’s any member of the org, cannot make more than a multiple of the lowest. This isn’t some harebrained idea it’s well studied and everyone except CEOs and Boards like it: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2611289 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2611289