Discussion in 'Economy' started by MtnBiker, Jan 9, 2006.
Mar 2, 2005
by Walter E. Williams
Yet another fine analysis by Professor Williams
Yes! Yes! Yes they do and I see you know what I'm talking about.
G Edward Cook
Wow, I thought for sure you would think the likes of Jack Welch and other CEO's were overpaid, at the expense of the 'workers.' Good for you!
We can all agree that tenured professors are overpaid!
One thing I learned recently when it comes to economics, there is a difference between the price of something and its value. People are paid what the market dictates.....
Adam Smith illustrated this with the "Diamond/Water paradox". Water is very valuable, because without it, we would die. Yet, it is very cheap. Diamonds, on the other hand, have little purpose except as jewelry and are very expensive. I'd like to substitute teachers and basketball players for this example. Teachers are valuable because they educate our children and yet, realatively cheap. Basketball players are good for almost nothing but dribbling a ball (and occassionally getting themselves put in jail or drug rehab) and get paid millions.
It is very easy to equate a person's worth with their paycheck, yet if economics is to be believed, then that is not the case.
Did you even read the article? It made the case that in fact CEO are not overpaid.
LOL! Thus my post!
Try being a CEO for a day and you'll understand exactly why they're paid so much.
The outright dishonesty of the Enron and WorldCom
CEOs is not the only problem.
There are vast numbers of cases where CEO preformance,
although perfectly honest, is ineffective, while CEO pay
remains at stratospheric levels.
As KarlMarx has pointed out, this disparity is not the
result of rational economics.
It is the result of CEO power, and the difficulty imposed
by the structure of our corporations in controlling this
power to the extent CEOs are actually paid for preformance.
One problem at my dad's company was that they had the Chairman/CEO deal going on. The board was the only one who could fire the CEO, but the CEO was in charge of the board. Then when the guy started doing really bad, there was nothing they could do until the annual shareholders meeting finally came and they bumped him out. Its a pretty good example of the importance of checks and balances.
Edit: Wow! 100 posts!! I can feel the power.
You should be at 20k+ :coffee3:
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