"Around 80 percent of the value of the stock market is held by the richest 10 percent of Americans while the bottom 40 percent barely have any wealth in the stock market at all."
So to reduce inequality, we are just going to give away stocks to employees?
It should be about a risk/reward ratio. Stocks go to the richest 10% of Americans, because they are risking their hard-earned cash. If a company goes bust, they lose that cash.
An employee has no such risk. If the company goes bust, they lose nothing. They just need to find another job, which isn't pleasant (it's happened to me plenty of times over the years), but nowhere near the risk of losing cash, assets, and even reputation.
I also don't see a problem with a CEO getting paid many times the lowest employee. Most CEOs earn their keep. They make many important decisions that usually make a company millions of more dollars. If not, they get canned accordingly.
1 comment
[ 3.1 ms ] story [ 9.9 ms ] threadSo to reduce inequality, we are just going to give away stocks to employees?
It should be about a risk/reward ratio. Stocks go to the richest 10% of Americans, because they are risking their hard-earned cash. If a company goes bust, they lose that cash.
An employee has no such risk. If the company goes bust, they lose nothing. They just need to find another job, which isn't pleasant (it's happened to me plenty of times over the years), but nowhere near the risk of losing cash, assets, and even reputation.
I also don't see a problem with a CEO getting paid many times the lowest employee. Most CEOs earn their keep. They make many important decisions that usually make a company millions of more dollars. If not, they get canned accordingly.