Robert Reich: “Paid-what-you’re-worth” is a toxic myth
Its often assumed that people are paid what theyre worth. According to this logic, minimum wage workers arent worth more than the $7.25 an hour they now receive. If they were worth more, theyd 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 wouldnt be paid this much. Any attempt to limit their pay is fruitless because their pay will only take some other form.
Paid-what-youre-worth is a dangerous myth.
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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.
Dont buy it.
http://robertreich.org/post/79512527145