Isn’t it unfair to pay CEO’s billions
of dollars when there’s so many people in poverty?
That all depends on where the pay comes from and how it is earned.
If, for example,
the payment to the CEO’s comes in part from a government bailout,
at the taxpayers’ expense,
then absolutely it’s wrong to pay them that.
But if the CEO is earning that money,
has paid that money as a result of a contract
with the board of directors
and they use that to reward him or her
for making decisions for them.
Because they believe that he or she is the best…
is a good option and worth it.
And if that CEO makes decisions…
suppose the CEO’s paid $10 million a year.
If he or she makes decisions,
which earn the company $15 million a year,
they’re absolutely worth it.
As long as they…
I guess I would answer
that the way I would answer about the pay …
about any pay for anybody.
It’s fair and it’s ethical, I think,
if they’re creating more value for the enterprise,
then they’re paid.
Because then the enterprise is better off on net.
And what your remember that enterprises make their money
by creating goods and services,
creating wealth for other people.
So no I don’t have any difficulty with paying a CEO millions of dollars.
If he or she has earned it
with making really good decisions and guiding the company
so as to create a greater amount of wealth than what they’re paid.
I see no problem with that at all.
To add one other thing.
The question “Isn’t it
unfair to pay CEO’s millions of dollars
while other people are living in poverty?”
seems to assume that the CEO
has that money at the expense of the people in poverty.
But that’s not true.
If the company that the CEO works for
is creating valuable goods and services,
then the CEO’s money doesn’t come at the expense of the poor,
it comes as a result of making the poor better off
by providing them goods and services.
They would like to have at a price
They’re willing to pay.
This idea that the rich get richer in a free market
at the expense of the poor is a pernicious error.
Bill Gates and Steve Jobs didn’t get rich at our expense.
They got rich by making us better off.
It’s important for us to remember that.