25 November 2008

Maximum wage law

From the NY Times Business page:

After long and often bitter debate, Congress has passed legislation, fiercely fought for by labor and progressive groups, that will limit top salaries to fifteen times the minimum wage. Tying the bill to a plan of overall reform of the U.S. economy, the bill echoes a similar effort enacted by President Franklin Roosevelt in 1942, which was followed by the longest period of growth for the middle class in U.S. history.

I always thought this was a great idea--much more important than a minimum wage. People can, after all, be so lazy and unproductive that their labor is worth next to nothing. But it's impossible for people to create billions in wealth just through a wave of their hand at a board meeting.

4 comments:

Martin Langeland said...

But so long as shareholders Receive the profits as a siegeurial right, all but they will be poor.
in 1776 we told the king that we owned our political selves. In 2008/9 it is past time to democratize our economic selves and take our share of the benefits. See "The Divine Right of Capital-- Dethroning the Corporate Aristocracy"
by Marjorie Kelly ISBN 9781576752371

Karlo said...

I'll put it on my "to read" list.

Tom Harper said...

Is that NYT article for real, or was it satire? I never heard about that law.

I think it's excellent news (if it's true). I'm not a socialist (even though I get called that a lot), but with our economy just about to plunge into another depression, the last thing we need is a huge gap between CEO salaries and the minimum wage.

Karlo said...

The article isn't very dated (hint, hint).