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THE MYTH OF EQUAL PAY

Posted by Tim Bryce on February 19, 2014

BRYCE ON CAPITALISM

– In capitalism, there is no such thing; it’s what the market bears.

(Click for AUDIO VERSION)
To use this segment in a Radio broadcast or Podcast, send TIM a request.

The president has seized upon the concept of “equal pay,” not so much from a gender equality perspective, but taking umbrage with CEO’s of big businesses making millions, while others struggle with minimum wage. Translation: the distribution of wealth. There is no doubt we are witnessing some rather obnoxious economics today, particularly by athletes, entertainers, the media, CEO’s and politicians. For example, I never understood how a backup catcher in baseball, who does nothing more than warm-up relief pitchers, can earn a million dollars. Nor do I understand why people pay exorbitant ticket prices for sporting events, particularly at the Super Bowl where it costs as much as $2,400 for the worst seat in the house. Then there is the matter of paying over $4M for a 30 second ad during the Super Bowl.

Although I find it disturbing people willfully pay for such obnoxious economics, I am fully aware of the concept involved, which is “capitalism” representing what the market will bear.

On a recent Fox News segment, I heard liberal commentator Bob Beckel champion the concept of “equal pay,” that CEOs should not be paid bloated salaries while the workers are paid much less. Beckle balked at suggesting a salary cap for executives, probably because he is reported to have a personal net worth of $10M. Naturally, this would preclude him from asking for more money for his media appearances and columns (see “hypocrisy”). In other words, he has no means for setting the bar as to what would be fair and equitable.

We may be born equal, but what we do with our lives is ultimately up to the individual. Some may become inventors, pioneers, writers, craftsmen, and captains of industry; others will become thugs and wards of the state, blaming their woes on others as opposed to assuming responsibility. Some people will succeed, some will fail, all of which is referred to as “natural selection” a la Charles Darwin. For example:

* If the minimum wage is raised, and jobs disappear, it is “natural selection” within the free market.

* If athletes and entertainers keep raising their salaries, and ticket sales fall off, it is “natural selection” within the free market.

* If the price of a product is raised to the point where people stop buying it, it too is “natural selection.”

“Natural selection” is capitalism in action.

Socialism is “unnatural selection” and the antithesis of capitalism. For example:

* If money is taxed from the rich and given to the poor, the rich will be less likely to invest in undertakings that will produce jobs and stimulate the economy.

* Likewise, if government bureaucracy inhibits companies with stifling rules and regulations, it too will have adverse effects on jobs and the economy.

* If prices are defined by the government and not the market, it is “unnatural selection.”

The concept of a “free market” is a capitalist concept, not socialist. It means the market can behave unfettered from artificial restraints as imposed by government. To make it work though, you must assume responsibility for your actions and understand the prospect of risk. The same people who endorse equal pay, are the same who refuse to assume responsibility and risk. They want it all without having to earn it which, of course, is socialism.

If you are concerned about obnoxious economics, as I am, please be mindful that every time you order expensive tickets or merchandise, or purchase $10 hot dogs and beers, you are endorsing capitalism. If the market fails to bear idiotic prices, they will inevitably go down, naturally.

Keep the Faith!

Note: All trademarks both marked and unmarked belong to their respective companies.

Tim Bryce is a writer and the Managing Director of M&JB Investment Company (M&JB) of Palm Harbor, Florida and has over 30 years of experience in the management consulting field. He can be reached at timb001@phmainstreet.com

For Tim’s columns, see:
timbryce.com

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Copyright © 2014 by Tim Bryce. All rights reserved.

NEXT UP:  BRYCE’S LAWS ON LIFE – We’ve done management, systems, and project management, now how about Life?

LAST TIME:  THE TRUTH ABOUT PROJECT MANAGEMENT PACKAGES  – Do they truly support project management or are they glorified punch clocks?

Listen to Tim on WJTN-AM (News Talk 1240) “The Town Square” with host John Siggins (Mon, Wed, Fri, 12:30-3:00pm Eastern), KIT-AM 1280 in Yakima, Washington “The Morning News” with hosts Dave Ettl & Lance Tormey (weekdays. 6:00-9:00am Pacific), and KGAB-AM (650) of Cheyenne, Wyoming. Or tune-in to Tim’s channel on YouTube.

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7 Responses to “THE MYTH OF EQUAL PAY”

  1. Chris Payne said

    Consider the price for a gallon of gas vs a grande vanilla latte from Starbuck’s or a bottle of water. Oil execs are evil and greedy, Starbucks are brilliant entrepreneurs.

    Sent from my iPhone

    >

    Like

  2. Tim Bryce said

    An M.I. of Atlanta, Georgia wrote…

    “The increase of minimum wage will reduce jobs and hurt the people on minimum wage.

    People earning minimum wage have no skills that people are willing to pay a living wage for. Minimum wage enables these people with little or no skill to obtain work to build skills so they can eventually earn a living wage.

    Increasing the minimum wage decreases the number of unskilled people an employer can hire so less people will gain the skill and remain impoverished.”

    Like

  3. Tim Bryce said

    An R.S. of Pennsylvania wrote…

    “Increasing minimum wage has already caused a cut back on jobs, and more increases will cause even more.

    As soon as it became too expensive to pay people min wage to cook food, many fast food stores started buying precooked food that only needs to be heated up and Americans responded by flocking to the fast food stores that did that.

    Many other businesses have done the same by laying off workers and importing the parts and products they once made.

    Even the icons of America like GM and Harley, now use lots of foreign made parts because they can’t afford the higher pay required to make those parts here.

    At the same time millions of seniors are dying because it’s now become illegal for them to be cared for by people who were once willing to do that job for less than minimum wage.

    The employers lose, and so do the unemployed workers.”

    Like

  4. sirchristiantheheck@reagan.com said

    VERY well said !!!

    Like

  5. […] THE MYTH OF EQUAL PAY […]

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  6. […] TIME:  THE MYTH OF EQUAL PAY  – In capitalism, there is no such thing; it’s what the market […]

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  7. Tim- this rates as one of your best writings
    that I have read.To the point and true as
    you can get.We need more writer’s that
    aren’t afraid to tell it like it is.Keep it up.
    Maybe others will join in and tell it like
    it is also. @L ESTES SR

    Like

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