Monday, June 13, 2005

Rich Getting Richer, Thanks to American Socialism

Desmoines Register

The most obvious example is the compensation of corporate CEOs. Their obscene pay packages cannot be attributed to the invisible hand of the marketplace. If there were a free market in executives, CEOs would be bidding against one another to see who would work for the lowest salary, just as ordinary workers are pitted against one another to hold down wages. CEO salaries are not set by the marketplace. They are set by compensation committees made up of fellow insiders who have a vested interest in keeping all executive compensation far above what a free market would set.

Socialism for the CEOs. Capitalism for the workers.

When workers are laid off, they can expect 26 weeks of unemployment insurance. Then they are thrown into the cold, cruel marketplace to fend for themselves.

When CEOs run companies into the ground, they can expect golden parachutes that will leave them rich beyond the wildest dreams of ordinary mortals, able to live comfortably the rest of their lives.

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