I hate it when corpos use the “oh we can’t lower prices because our staff is getting paid too much”-narrative. What about the CEO who takes half the profits for himself?
It’s the workers who create value for a company, they don’t take it away by getting paid for their work.
The sad fact of the matter is… math
A corporation might have 10 C-level guys dividing $50 million amongst themselves and 10.000 workers earning $70K, which costs about $100K due to overheads (health insurance, retirement, etc). Together, that’s a billion, which is 20x more than the C level guys.
The C level guys aren’t the big expense, not by a long shot.
Labour, government and shareholders divide most of the earnings amongst themselves.
For the record, I do think we need to tax the wealthy more and the workers less.
I have no disagreement on this argument.
But C-suite compensation is not a significant part of prices.
Energy prices, tax, labour costs and the cost of capital (i.e. returns to shareholders and creditors) are what drives prices.
