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Ceos & Pay Gap Paper

In: Historical Events

Submitted By AshleyLescher
Words 358
Pages 2
Do you find the widening difference between the salaries of corporate executives and regular workers to be just or unjust? This continuing widening is unjust because more money is going towards the CEOs who may or may not deserve it. Let's go more into the present and look at how many immigrant workers have came to the US since the 80s. Low skilled workers are so much easier to find and pay less than the "average American worker" (as shown by skew income data).
I feel this way because "CEO pay has no correlation with either performance or market capitalization" (Obermatt). The gap continues to increase although education or performance does not play part in the growing wages which makes absolutely no sense to me but I'm not the one appointed to put them in the top 25% of the salary range.
In 1980, a CEO made 35 times as much as a worker. This increased by 185 times in 2009, although the company may not have been this hugely successful. Our corporations today can easily lay off workers and cut back salaries because workers in china would accept half as much pay as a worker here, for example, the effect being the lack of jobs and more money aimed towards CEOs.
The gap should not be getting bigger this rapidly because there isn't as much money to fund the CEOs salaries, but there still is this "excess pay"(Obermatt). Just because there have been income gains in lower areas doesn't mean the gap should continue to grow between these areas and CEOs. Findings show consumption inequality is smaller than income inequality. (Weinberger) The argument of "the rich get richer and the poor get poorer" is still used for this predicament.
The companies/CEOs aren't necessarily doing anything to gain production but they are still getting richer as the middle-class income is shrinking.
Is the widening gap just or unjust?
The widening gap is unjust in more ways than one.
It is absolutely ridiculous that today the CEO to worker pay ratio is 344-1; as compared to the 80s when it was 42-1(Brock).

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