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1/06/2009

Paying less to workers to pay more to management

How is that possible? One of the ways is like what Wall Street was doing. The top management just pays themselves crazy. But this is not serious then as the financial institutions were churning up big profits and the workers were small in numbers. Put this into the context of manufacturing companies or any large organizations with a big worker base. The amount paid to the top management must come from the general pool of money available for payout. The more being paid to top management, the lesser will be available for the workers. Yes, it is a zero sum game. In the same way any organization that pays big bucks to the top must get the money from somewhere. Normally it comes from paying less to the workforce in general. Organisations that pay their top executives big salaries must find ways to boost up the kitty every month. It either comes from higher cost to their products or services, or from paying the workers less. As simple as that, unless money can appear in mid air. The consumers pay for everything. The workers indirectly pay for the top dollars of their management. True or not?

9 comments:

Anonymous said...

your answer may well be equal iron rice bowl to all, that seems fairer doesnt it.

redbean said...

we believe in meritocracy. no iron rice bowl. once a person is not contributing, out he goes.

Anonymous said...

Iron rice bowl is surely a dead end,and I think the whole world knows it since the commies threw it away fairly determinedly..

I am more concerned with the Gini,in Spore,the ministers elelcted by people pay themselves close to 200 times the average household income in Spore,PAP has chosen to follow the extrem right of Uncle Sam,WINNER TAKES ALL & PEANUTS(NOT SPORE TYPE)FOR FOLLOW UP.

Uncle Sam may soon come to the conclusion that this does not work,even they do have min wage policy,so what would be left for PAP,another u -turn perhaps.we are good at it.

Anonymous said...

So much money was made throughtout the many decades of industrialization and commercial developments.

The money do not evaporated into thin air, then why are there more poor people?

patriot

Anonymous said...

The money printed in the US is backed by thin air. And that money is the cause of multi-million dollar houses, watches, cars, jewellery, paintings etc. It is evaporating because these things no longer are worth their original values. The money are all in those inflated prices of consumer luxuries.

redbean said...

sometimes i wonder why would the rich pay millions for a piece of grafitti which is passed around as art form. but that is how the super rich spend their money and past times. i wish i could do the same, going to auctions to raise bids.

Anonymous said...

Dear Anon 5:30pm 07 Jan 2009

that means all the wealths are not hoarded and hidden in secret accounts which i once heard some people theorizing.

I was once at Bugis having coffee and some strangers were talking about some Corrupt South East Asian Leaders hiding their ill gotten fortunes in Europe. Another one was saying Singapore was a haven for money launderers and he wondered aloud why the people were so funny.

He was wondering why South East Asian hid their fortunes in Europe and elsewhere. And why foreigners kept their monies in Singapore(located in South East Asia of course!)

And i asked myself; if those monies ended up as white elephants, since they were mostly not used. What a waste! However, i am not too sure that i got the right impression.

patriot

redbean said...

only money from illegal sources needs to be hidden. another reason is to hide from taxation.

money from legitimate source should be used for cooking class: ) just joking.

Anonymous said...

Or foot massage as suggested by one wise old man.