|"Labor Is The Base" by Herr D on heromachine.com. The crash of '29 was partially caused by this tendency.|
Hats off to Henry Blodget for finally getting an unpopular idea for capitalists published in a business magazine. I've talked about this idea a lot, even pointed out that legislation about it is likely to fail, even if passed (doubtful.) What I didn't do, apparently, is phrase it in such a way that business people would have to face that it is something they are doing WRONG. 'A frog does not drink up the pond in which it lives.' 'Don't go shooting yourself in the foot.' 'Are ya WITH us or AGIN us?'
There are loads of approaches that can help solve a problem like this. Most of the historical ones are legislative, which, I gotta say--not the best weapon against human nature. Right now, however, there AREN'T any others besides outright consumer boycott. They don't usually work as intended, and that's assuming that they get off the ground. Worse, they would only target a company at a time.
So lets say there WAS a convenient law that would accomplish 'fixing' what Mr. Blodget pointed out as a problem that's ruining our country's economy.
Maybe . . . "No corporation may be formed that allows payment or compensation to any member or employee or subcontractor entity to be less than one tenth that paid to the highest compensated member. All publicly traded companies will obey this requirement for licensing or not be publicly traded after 'such and such a date.' Further, they will submit proof of this requirement in ongoing annual reports in the following manner . . ."
Because companies could grandfather in to avoid it. Only public trading could be regulated. This approach would come with temporary problems, but it would in fact help avoid a repeat of the crash of '29. I don't know, guys. Good luck making the right decisions on THIS one. I'm not an economist. I just have good sense.