So, as I woke up this morning I began scheming for a way to end the dramatic wealth disparities that have been created in our society. In case anyone is ever curious it began with an end to stock ownership and capped executive/maximum salary & benefits, maybe to $1M, maybe something slightly higher. Anyway, the idea was that if the company had to run more like a non-profit, not holding on to cash to benefit shareholders, only to grow the company itself, and it would also be forced to pay higher salaries to employees, then in very little time the gap would be closed. Then I realized the problem.
Salaries for the working class can't grow by leaps and bounds. If they did then it would just lead to the type of inflation that would knock down that same purchasing power. If everyone had a bunch of cash then our demand would be high, supply would be low, and prices would have to increase. By allowing the few to control the wealth, as long as the few continue to allow wages to grow at a pace that matches inflation then the pricing structure all holds together. What strikes me then as still the most effective means of limiting the excess accumulation of wealth in our society is adding a few more steps to the income tax pyramid, raising the maximum rate higher than the 35% we're currently at, and giving that excess which we can't give to the employees for fear of causing inflation into the hands of the government. I really didn't think that's where I was going to get when I started thinking about reforming the system this morning but there it is.
Thursday, January 15, 2009
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