Tuesday, February 12, 2008

Equity, and a Maximum Wage

I remember vividly watching a segment on 60 minutes (Ausie Version) about 6-8 months ago. It showcased the booming economy of South Korea and in particular a massive tanker shipbuilding company there. One of the biggest things that drew me into the story apart, from the fact it is the second fastest growing economy behind Japan, was the prevalent (and active adherence) to the concept of equity amongst the workers in the company. Most notably the fact that the highest paid CEO's and directors in the company were paid fairly compared with those lowest paid in the same company. The ratio between highest and lowest paid was around the 10:1 ratio with the lowest paid laborers earning around $80,000p.a.
More recently in the past 5-6 months I was introduced to the concept of large Corporations via the Canadian doco of the same name (The Corporation). Now I'm sure many would accuse and dismiss this doco as exaggerated and left wing biased but many of the concerns regarding inequity and the exploitation of slave labor from targeted countries are by and large very accurate.
So when I read in an interesting article, on another notably left wing news site called Alternet, (When The Rich Make Too Much Is It Time For A Maximum Wage - 13/09/07) I guess I should not have been surprised to see the mention of the concept of a maximum wage notably brought forward by a respected Harvard Psychologist Howard Gardiner.
What brought all this concept home to me recently was the Emphasis Brian Maclaren placed on this concept as he named it: the equity crisis - In that book I was reading - Everything Must Change. The stuff he mentioned in there regarding the idea of a maximum wage really jumped out at me. In particular when he made note of, perhaps now not so respected, economist in the U.S. Hermen Daley who points out the bonds of community begin to break at a ratio of 50:1. Speaking again of the ratio between highest and lowest paid workers.
After growing up in the 70's and 80's and perhaps only being slightly shocked by movies like Wall Street. (Remember Michael Douglas's rant: Greed is Good, Greed is Right) And then later in the 90's and to now; as the silent juggernaut of global Corporations have rolled over us entirely unchecked. The question has to be asked: How long can this capitalist system be sustained without a ceiling? Forget days and weeks - the gulf between Bill Gates with his fortune 500 friends and the third world grows astronomically by the second. Not thinking too hard about it I'm pretty sure that Bill with his Trillions has enough wealth, with it's intrinsic self perpetuating power, to single handedly lift the poorest and starving on our planet out of poverty enough to be fed and sheltered in a sustained manner without altering his affluent lifestyle.
When are enough people going to take notice of things like the Equity Crisis?
It's not like it isn't there its just that not many talk about it.
Perhaps it is just that we are too worried about losing our own chance at the dream of affluence without a ceiling...and not so worried if it comes at the expense of our neighbor.

Yes I know I'm harsh sometimes but it's things we need to start thinking and talking about.

1 comment:

Huddo said...

Thanks for the comment Shane. I'll check it out.