The graph clearly shows that people out there are far more economically successful than the OP, how dare they! Those god damn hard working, innovative entrepreneurs have a lot of nerve actually wanting to get paid back for all the society enriching products and services they provide.
Personally I think we should have gub'mint steal their stuff so the politicians and bureaucrats can make the economy less efficient by wasting it on a mountain of useless bureaucratic bullshit (after all who needs productive capital anyways?), thereby lowering the productivity of "ordinary American Workers" and thus further depressing their wages.
Dorothy (respectfully),
The Worker-to-CEO ratio went from 20-to-1 in 1965 to 365-to-1 in 2000. Was this a pure market reflex (as you suggest), or did it have to do partly with the bipartisan passage of trade and labor laws that allowed our noble capitalists to shift production to freedom-hating tyrannies in places like China? - thus allowing our great and noble John Galts to force American workers to compete with sweatshops - thus driving down wages and increasing wealth disparities. [Hey dingbat: your presidential nominee says "yes".]
But maybe you are right; maybe our innovative CEOs have become uber productive, like when they sank the global economy by voluntarily placing trillions in bets they couldn't cover (see the Derivative Market). Of course , after these noble innovators blew up our economy, they were bailed out by their Democratic & Republican puppets in Washington.
You can say that this was a market distortion - and I'd agree on more than one level - but nobody had a gun to the heads of Lehman or Bear when they were making such transparently corrupt bets on such an obviously inflated housing market.
I personally do not know any liberal who says that CEO's should not be rewarded for creating value; nor do I know any liberals who think that the factory worker who builds an iPhone should be rewarded like Steve Jobs - or even close to it. These are
your straw men.
Frankly, I could give a shit if some lazy moron is making minimum wage & eating dog food while a corrupt derivative trader flies over head drinking champaign. Life is unfair. Deal with it.
I come at this from a totally different angle. I think the current disparity in the distribution system - a disparity created by lobbying dollars and campaign contributions - is a problem only in so far as it has hollowed out consumer demand. Every worker is a consumer (whose role on the demand side is vital to economic growth).
So it seems we have a bit of a contradiction. To maintain incentives on the supply side, capitalists require low labor costs (a.k,a higher profits), but those same capitalists also need consumers to buy their stuff, which is challenging when wages are kept so low.
Reagan's answer to this conradiction was to create a faux credit democracy whereby the middle class was kept in the game through a massive expansion of personal credit (debt). (Don't take my word for it - google household debt starting in the 80s.)
To keep pace with globalization - which shifted jobs to more
profitable labor markets in China and the global south - the middle class had to borrow more and more in order to consume and stay afloat. American families went on a 30 year debt-based spending orgy. It was called Morning in America and it was sponsored by American Express, Visa, MasterCard and SubPrime. We used every financial trick in the book to replace the wages that never trickled down.
Problem is: the middle class is now too indebted to consume at the pace required for vigorous economic growth. This fact makes our economy terribly vulnerable to the slightest shock. So, my dear NightFox, you can wax on about the noble entrepreneurial spirit, but at some point you need to fix consumer demand without such an over reliance on debt. If the system doesn't find a way to address the income disparities that have hollowed out demand, then the contradiction between our need to maintain incentives
and demand will swallow us, which tragedy will make us more vulnerable to a despot promising moral renewal and national greatness, circa Germany 1930s