Posts Tagged ‘free market’

CEO Compensation: Hey, They’re Paid What The Market Will Bear, So What’s Your Problem?

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We are told CEOs are paid what the market will bear. After all, you should never mess with that invisible hand. Because, if you spend too much time looking into this, maybe you might learn the people at the top have been selling you a nice polished turd. But even if we didn’t question CEO pay in the year 2014, I still want to know why highly successful mid-20th century companies paid their CEO’s less (inflation adjusted). Were CEOs in the 1950s or 1960s simply less productive? Did the market deem them less valuable when compared to the pay of…
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An Indefensible Economic System

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Someone needs to explain to me why there are so many Americans making average or even substandard wages who continue to defend the capitalistic status quo. I think this is where Robert Reich is correct, that people are simply afraid. In a labor market where employers have all the power, people just feel lucky to have a job. But this still doesn’t explain why people in an anonymous setting (article comments, online forums), and who say they are middle class, continue to defend the practices of the super-wealthy. Those of us willing to point out the ridiculousness of our current…
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The Rich Are Rich Because They Deserve It? Krugman Responds To Brooks

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Is the affluence of the wealthiest Americans entirely earned, or is there a level of luck, timing, and in some cases, family inheritance involved? Or to ask it a different way, can people honestly make the case of one human being that is deserving of such massive wealth (like that of the .01%) on the merits of his or her productivity? Is there any single human being who deserves to be worth more than the combined wealth of millions of fellow citizens? I’ve written about this topic many times on this blog, and I touched on it recently in my…
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Talking Absolutes: The Language Of Free Market Conservatives

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Free market conservatives say government cannot address the problem of poverty. They say government can’t create jobs. They assume all people who are not making a living wage must not be working, or working hard enough, and so that means they are undeserving of any government assistance. And they say government cannot give to someone unless it has taken from someone else. But the problem with all of these “beliefs” is that they are all absolutes. There’s no room for granularity. It must be “this,” and if not, then it’s “that.” There’s no middle ground. I find it suspect for…
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The Free Market Has Spoken, And It Had Nothing To Say About Economic Inequality

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One of the tenets of free market ideology is consumer choice. The idea goes like this. Empower citizens to make their own decisions and they will have greater freedom, greater prosperity, and businesses will live or die at the will of the consumer. Therefore, corporations and executives are in effect beholden to the consumer. Sounds good right? Who could be against that? Well, here’s the problem. In most situations choice is an illusion, particularly in industries where there are only a few big corporations in competition. And equating consumer choice with your freedom as a citizen of the United States…
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