"Maximum Wage" Ratio?

[meekon5]

I just liked this idea:

Should the US Copy Switzerland and Consider a 'Maximum Wage' Ratio?

That's generally, not just for the US. Put a cap on what people can earn so it doesn't just get ridiculous to the sort of point we have now where a footballer (soccer player, or CEO) earns enough in a week to pay half the stadiums audiences wages for a year (my exaggeration there but go with it).

[jdurand]

I doubt it would pass here anymore than there (voted down).

[DigitalBuddha]

It's a good idea. But I'm wondering if it would work in a practical sense? I mean, you can structure income in ways that get around it; instead of taking cash in a paycheck each week, you're paid housing allowances, car allowances, expense accounts, medical coverage and more. Also, the corporation you are working for "rewards you" by leasing a boat you get to use, pays for bonus vacations, etc. On paper it looks good and should be law IMHO, but how would you enforce in the "real world?" That would take a lot of structuring such a law in a way that would not end up doing more harm than good.

IMHO.

[cckeiser]

Say what you like about the tenets of National Socialism dude, at least it's an ethos.

[DigitalBuddha]

I have an idea; let's pay everyone exactly the same no matter what they do in a company, all paid a high and decent wage. Anyone know a reason what that wouldn't work?

[MindAbiding]

But then there would be no need for people to strive for higher salaries, more prestige. We'd also never know who's better than whom.

Oh, wait...

:)

I have an idea; let's pay everyone exactly the same no matter what they do in a company, all paid a high and decent wage. Anyone know a reason what that wouldn't work?

[meekon5]

I have an idea; let's pay everyone exactly the same no matter what they do in a company, all paid a high and decent wage. Anyone know a reason what that wouldn't work?

The Peter Principle is the principle that "in a hierarchy every employee tends to rise to their level of incompetence".

It was formulated by Dr. Laurence J. Peter and Raymond Hull in their 1969 book The Peter Principle, a humorous treatise which also introduced the "salutary science of hierarchiology", "inadvertently founded" by Peter. It holds that in a hierarchy, members are promoted so long as they work competently. Sooner or later they are promoted to a position at which they are no longer competent (their "level of incompetence"), and there they remain, being unable to earn further promotions. This principle can be modelled and has theoretical validity for simulations.[1] Peter's Corollary states that "in time, every post tends to be occupied by an employee who is incompetent to carry out their duties" and adds that "work is accomplished by those employees who have not yet reached their level of incompetence". Managing upward is the concept of a subordinate finding ways to subtly "manage" superiors in order to limit the damage that they end up doing.

I recommend:

The Peter Principle: Why Things Always Go Wrong

[DigitalBuddha]

I have an idea; let's pay everyone exactly the same no matter what they do in a company, all paid a high and decent wage. Anyone know a reason what that wouldn't work?

The Peter Principle is the principle that "in a hierarchy every employee tends to rise to their level of incompetence".

It was formulated by Dr. Laurence J. Peter and Raymond Hull in their 1969 book The Peter Principle, a humorous treatise which also introduced the "salutary science of hierarchiology", "inadvertently founded" by Peter. It holds that in a hierarchy, members are promoted so long as they work competently. Sooner or later they are promoted to a position at which they are no longer competent (their "level of incompetence"), and there they remain, being unable to earn further promotions. This principle can be modelled and has theoretical validity for simulations.[1] Peter's Corollary states that "in time, every post tends to be occupied by an employee who is incompetent to carry out their duties" and adds that "work is accomplished by those employees who have not yet reached their level of incompetence". Managing upward is the concept of a subordinate finding ways to subtly "manage" superiors in order to limit the damage that they end up doing.

I recommend:

The Peter Principle: Why Things Always Go Wrong

Great book!