Tuesday, April 25, 2006

A two-way argument for in-equality

An annual survey of Danish business paper Børsen shows that, once again, executive pay has risen many times faster than salaries for the rest of us. Some expert explained on the radio that the increasing gap in income is justified because of the increasing globalization. If we want to attract and keep the talent, Danish executives should be compensated at the level they could achieve outside of this egalitarian little place.

Interestingly, more or less the same argument is used to justify keeping salaries low for the non-executive workforce; increasing globalization means that workers from Denmark are in direct competition with workers in countries with much lower wages and benefits.

Both arguments are probably right. But it does make me a bit uneasy looking at a world with an increasing gap between the have-nots and the have-a-whole-lot.

No comments: