Sunday, September 17, 2023

The UAW Strike: How wide is the pay gap between the boardroom and the assembly line?

The experts disagree on the bottom-line, but no matter how you do the math, boardroom compensation has exploded in recent decades to the point where the pay gap between top management and the average worker which used to average around 15:1 in the 1960s, is now closer to 300:1. That is not just troubling; it's immoral. And to add the icing to the cake, a lot of these compensation packages are deliberately structured in ways intended to shield their true value from scrutiny and taxes. 

In the history of the world, no economic system has delivered more dramatic improvements in quality of life, to more people, in such a short period of time as capitalism. And I am all for an honest profit in business. But the emphasis needs to be on "honest," not "profit." You can't build a moral system where the guy who turns out the product is being paid less than 1/2 of one cent for every dollar being shelled out to the suits in the boardroom. 

To be clear, I'm not endorsing all of the UAW's demands. But they have grievances, and a lot of them are legitimate.

These are picket lines that I would not cross. 

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