Economics Lesson: CEO pay vs. workers' pay

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[Geschmolzen]

Another good example of how inflation (expansion of the money supply) transfers wealth from the bottom up

[Ralphdraw3]

I think what has transferred money up to the top incomes are the huge increases in executive compensation and tax cuts for the very wealthy

[jakobeckert]

Thank you for this posting, can I have the sources/the page graph of CEO salary's graph please.

[Ralphdraw3]

@Rexanglorum It is wrong - our societies money and resources are going to the wrong place - people who sit at desks in New York who shuffle money and paper around. Today's CEO makes tons of money whether he/she succeeds or fails (failure is rewarded by lucrative retirement packages and golden parachutes - disgusting).

Our manufacturing base has been destroyed - the middle class is being ruined - the national government is deep in debt as are many states. We have plutocracy of the rich.

[Ralphdraw3]

@Rexanglorum 1) all those people on Wall Street getting the big bonuses don't deserve it and haven't earned it 2) these people making huge salaries haven't invented anything, haven't founded a company, and aren't being productive, they are merely shuffling money around. 3) With these ultra-rich people in our society, we are creating a permanent aristocracy (much as there had been in Europe and other place) not healthy and not democratic.

[dukee155]

Well companies got bigger.

[ApostolypseNow]

I am just kidding Ralph. Thanks for the video. I agree with you 100%  It is disgusting, and it kind of reminds me of how the Queen in England is still allowed to basically have more wealth than anyone in the world (She is the real richest person in the world bar none), when we supposedly now live in a civilized and modern world of Republics and Democracy. What a joke this country has become. The Queen should also be stripped of all her wealth since it was obtained illegally.

[Geschmolzen]

part 3

Because the bank wasn't as desperate to dump its asset to raise capital it can hold out for a higher price and ultimately lets say it makes $120,000 (notice the price of the house still dropped from its previous high) $20,000 was just transfered from the debtor to the creditor.

[Ralphdraw3]

Most economists measure inflation by the increase in prices

[Geschmolzen]

Part 3

...and, while the process impoverishes many, it actually enriches some. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose".

Inflation passes wealth from those who consume most of their income and those who save to those who recieve the new money first.

[Geschmolzen]

Part 2 (I'm not sure if you got part 1) as I said inflation is not the rising of prices (that is a side effect) inflation is the creation of money out of thin air. I'll qoute John Keynes (who had nothing but contempt for the working class unlike the two of us) "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily;....