27 May 2011

QOTD: Pay Discrepency

The point is, the dollar is going down. Over the short term, I don’t know…but certainly over the long term. As it is, a tollbooth operator in the state of Massachusetts earns more than a person with a master’s degree in computer science in Beijing. And the fellow in Beijing works 12 hours a day…and gets almost no benefits.
Discrepancy in pay certainly is a major problem of the current economic crisis.  We can say the same about our CEOs of major corporations in this country that their salaries are very disproportional to the earnings of the company, the amount input that they have (or chose to put in), and their employees'.

While no man should ever be limited by laws (or more precisely, taxes) on the amount of wages one can earn, we must realize that the market does set the fair wage, inclusive of the inherent risk in the currency with which the wage is paid.  The problem with pay discrepancy is that it will always find equilibrium; which means that through inflationary burn, debt enslavement, the burden of government, and high unemployment, the wages of average workers in the United States will not have upward pressure.

All the more reason to reform Washington, end the Federal Reserve, and prevent the meddlers from meddling with our currency.

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