Top athletes get top dollar. In most cases the are the most valuable people on the team, and, therefore get the most pay.
Why doesn't it work this way in the business world? What does it often happen that those that do the most work, that drive the business and results, often get the LEAST pay?
Not true in all industries, but most companies I have worked for the management and upper tier spend most of their time socializing, eating and in meetings where nothing really gets accomplished......
Labor is a commodity. Wages are based on the health and the stability of the overall economy. In a strong economy, employers pay top wages to attract the best employees. But, in sour economic times, or when unemployment is relatively high, employers have their pick of the brightest and most skilled employees. This drives wages down due to the vast number of qualified employees unemployed. It's supply and demand. And, many other factors come into the picture.
Due to our increasing supply of foreign made goods, many employers are having a hard time competing with cheap foreign made goods. So, in order to compete with cheap foreign goods, employers can't pay top wages and remain competitive and keep their doors open. Our unfair, unjust, and one-sided foreign trade agreements and policies have destroyed wages, as well as industries. Over the past 50 plus years, we've lost all or part of the following industries to cheap foreign made goods. Textiles, steel, electronics, tools, toys, appliances, automotive parts, farm equipment, and housewares. We've closed many plants and factories that once provided living wage jobs that covered all education and skill levels.
We can not compete with cheap foreign made goods, and still pay living wages to employees. Basically, we've sacrificed our economic well-being in favor of strengthening foreign economies. America no longer produces what America uses and consumes. The results are lower wages, less company paid benefits, and a lower standard of living. In addition, we offshore out-source labor, import cheap labor, and have millions of illegals living and working in this country. Also, innovation, technology, and automation has replaced workers.
So, employers have the advantage over employees due to the shrinking jobs market. The present trend is low wage, part-time, and temporary employment. The jobs that paid $50,000 a year back before 2008, are not paying $35,000 a year. College grads are living at home with parents, and some are flipping burgers for spending money. Employers are producing more with fewer employees.
I might add that unions have greatly been responsible for jobs leaving this country. High union wages and benefits opened the doors for cheap foreign made goods to flood our markets. There was a time when only union workers could afford union made goods.
Many skills that were once handed down from generation to generation, are now lost due to so many plants and factories closing. We once had many industrial mechanics and electricians, many skilled machinists, and other skilled workers. Now, we have a small percentage of those with industrial skills. The "Global Economy" has taken its toll on the American worker. Basically, the term "Global Economy" means equalization to the lowest level, and we're rapidly approaching that equalization. We've been sold out by the very ones that we entrusted with our social and economic well-being.