Friday, April 27, 2018

Economic growth

A few days ago I was presented with information regarding the widening gap between CEO salaries and their employees. Back in the 50's the CEO made 20 times what the average employee made and today that has risen to over 270 times as much. The information I got was about Walmart where the CEO was paid $22 million and this was 840 times the $26,000 that the average employee earned. Interestingly enough if they took the salary paid to the CEO and gave that to the 2 million Walmart employees they would each get $11. This once again points out the fact that you cannot make the poor rich by making the rich poor. Throughout history there have always been too many poor and too few rich. Dictators often win control of countries by promising to share the wealth. Bernie Sanders was preaching this in the last election. Some years ago an article pointed out that the six members of the Walmart family were worth $90 billion dollars and this was more that the lowest 50 million families in America. Take their money which is mostly in Walmart stock and give it to those families and each would receive $1,800. The way to help the poor is to make good paying jobs available to them and this can only be done with economic growth combined with innovation. It takes people like Bill Gates and Steve Jobs to create growth. While it is nice that Gates gives a lot of money to charity it would be even better if he used that money to create new jobs. The economic freedom afforded those in a free market economy is now and has proven to be the best way to help the poor people around the world.

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