Fabieter
Member
I’ll never understand this line of thinking. Wealth gap isn’t the issue. People who talk about wealth gap reek of envy and resentment.
Person A - $100 billion
Person B - $1 billion
Person C - $100 million
Person D - $1 million
Person E - $100,000
Huge wealth gap between each person above but they all have a great standard of living, hence wealth gap is a shitty metric. We need to focus on standard of living and income mobility (are people’s income increasing).
It’s not a zero sum game, where there’s a fixed pie and if Person A takes a slice then there’s left to go around. Multiple pies are made everyday.
If anything, we should be upset with our government who spends our money ridiculously and is wasteful, rather than a guy who made a successful startup business and compensates his employees handsomely ($266,000 average Nvidia employee income)
Percentage raises can be seen as unfair due to the effects of compound interest, which can exacerbate income disparities over time.
Some companies address this by implementing a model where the CEO's salary is tied to a multiple of the lowest-paid employee's salary. For example, if the CEO earns 50 times more than the lowest-paid worker, any raise the CEO receives requires a corresponding raise for all employees to maintain the same ratio. Thus, if the CEO's salary increases by $10 million, everyone in the company must receive a proportional increase to preserve the 50:1 ratio.
The cost of living is also problematic, as it tends to increase faster than wages for lower-income individuals, making the rich richer and the poor poorer. This situation greatly disadvantages the average worker.
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