Mark Tomlinson

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Monday, April 10, 2006

Loot, Not Earnings | Bayosphere

Loot, Not Earnings:
"The situation -- and corporate America's indifference to the poison it spews into capitalism -- grows worse every year. Executives don't live in a genuine free market, and will do everything in their power to prevent such a calamity from imposing on their cozy, back-scratching system.

Capitalism? These people are terrified of it."

So maybe making executives is what America is good at?

See the previous posts here about the job market. We are simply seeing an equalization as the planet normalizes labor. After all, the distribution is normalizing so to some extent will the pay scales. There are other games here:

"...low-cost labor in places like China and India have put downward pressure on the wages and benefits of the average American worker. Executive pay, meanwhile, continues to rise at an astonishing rate. The average pay for a chief executive increased 27 percent last year, to $11.3 million..."

So now we are comparing percentages of percentages? Bad math move...

In this case I think the sample size are important you can't directly compare a percentage of the whole (which includes joe six-pack) to a percentage of folks who are by definition already successful (wildly so in many cases).