Some economic positions, in brief. On capitalism, corporations, inequity, and government’s role.
My position is that economics serves society. That implies society’s goals come first, not economic theory. Economic consequences should be clipped (regulated pragmatically) when pure, theoretical operation leads to gross failure to meet society’s goals—equal opportunity and equal pay for equal work yet with incentive for individual initiative.
With such a wide variation of skills and abilities, it is not surprising that different levels of income and wealth are earned; however, these differences have gotten out-of-hand. CEOs earning 300 times their median employee salary!
- Inequity reflecting success is not wrong. Inequity arising from rigging the market is wrong.
- Tremendous wealth may still be earned by founding new enterprises. That is through company ownership.
- Corporate executives, managers of organizations, are to be limited to pay packages approved by stock holders. These are mandatory, not merely advisory results. Company by-laws, not government regulations, should limit CEO pay packages, imo, to a maximum ratio of 25 or 50 times the median worker salary.
- Capitalism is effective for markets that don’t involve public goods. Since free markets require many entities supplying the good or service, public goods don’t operate with advantage in a free market.
- Capitalism will be regulated when asymmetry of information leaves the marketplace open to manipulation. This area is vast.
Image of properties of proprietary capitalism from wikicommons, public domain