Featured Quote

In 1913, Henry Ford wrote the following as the directors had been reaping the rewards of profits - "The wages we pay are too small in comparison with our profits. I think we should raise our minimum pay rate".

Friday, May 27, 2011

Economics Explanation

Angry Bear has a post about why wage and income growth are the key to reviving the economy.  It goes a long way toward supporting my Ethical Capitalism stance.

My idea of "Ethical Capitalism" apparently does not mesh with the popular idea out there.  I am focused merely on the Fiscal aspect of paying workers well as compared to the executives.  Ford's 40 to 1 measure could be expanded a bit today. Maybe pay your CEO no more than 50 entry level workers, or at most 100 times more than an entry level worker.

The Profits-over-Everything mentality is destroying the economy.  When more companies realize that profits are not everything and that sustainability will pay off more in the long run, perhaps we can avoid the bubble and burst roller coaster effect.