Robert Reich: “Paid-what-you’re-worth” is a toxic myth

[ashling]

It’s often assumed that people are paid what they’re worth. According to this logic, minimum wage workers aren’t worth more than the $7.25 an hour they now receive. If they were worth more, they’d earn more. Any attempt to force employers to pay them more will only kill jobs.

According to this same logic, CEOs of big companies are worth their giant compensation packages, now averaging 300 times pay of the typical American worker. They must be worth it or they wouldn’t be paid this much. Any attempt to limit their pay is fruitless because their pay will only take some other form.


“Paid-what-you’re-worth” is a dangerous myth.




****.

The “paid-what-your-worth” argument is fundamentally misleading because it ignores power, overlooks institutions, and disregards politics. As such, it lures the unsuspecting into thinking nothing whatever should be done to change what people are paid, because nothing can be done.

Don’t buy it.

http://robertreich.org/post/79512527145

[Xipe Totec]

1. I've always been mystified by why we offshore minimum wage workers, but we don't offshore CEOs

Seems to me, the payback is much higher if you offshore the CEOs.