Australian Politics Forum - One idea on rising inequality

bogarde73

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One idea on rising inequality
Jul 18^th, 2014 at 10:37am

We are all aware of the trends in income distribution over the last 30 years. The French economist Thomas Pikkety has documented how there are various wealth gaps expanding: university graduates v non-graduates, young v older, CEOs & executives v regular workers & so on.

One of the worst trends and in my view one of the most damaging socially & economically is the spiralling out of control of executive pay, especially CEOs, CFOs etc. Not only is it a worry on equity grounds but it is damaging for efficiency and productivity. A dispirited work force is not a productive work force.
But what can be done in our type of market economy to restrain if not wind this back. I doubt it can be done by any type of legislation because it would come up against constitutional issues.
The ultimate control on executive pay comes from company boards but this is not going to come from the top down. It will have to come from the bottom up.
The community has to find a way to influence boards of directors generally in a way they cannot ignore.
It occurs to me there might be one way to do this.

The major shareholders of most public companies are institutional investors and among the largest of these now are the big superannuation funds, including the industry funds in which unions have a say.
I have been impressed lately by the work of some internet pressure groups, for instance Change.org, where a remarkable number of signatures to petitions are gathered very quickly on various issues. I've signed some myself.
Now, if huge petitions could be gathered to be sent to the management of some of these major super funds urging them to use their votes to restrain executive remuneration in companies in which they hold shares, enough pressure might gather to turn around the situation. The petitions would have to specify what are regarded as acceptable levels of remuneration - I don't know, maybe 20 times AWE?

I don't have the energy to try and organise something like this but some of you out there may know people who do.
Just a thought.

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bogarde73 Gold Member Offline Anti-Global & Contra Mundum Posts: 18443 Gender:	Re: One idea on rising inequality Reply #1 - Jul 18^th, 2014 at 2:18pm PS It would probably help if super fund members signing such petitions stated that they may switch funds if the fund directors did not exercise their votes as suggested.
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Grand Duke Imam Gandalf New Member Offline Australian Politics Posts: 24 Gender:	Re: One idea on rising inequality Reply #2 - Jul 18^th, 2014 at 11:39pm I am too busy being a Smart Ass intimidating people so they get banned by backward little old ladies like Annie Anthrax with Free Divers Divers BALLS in my mouth.
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gone

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Re: One idea on rising inequality
Reply #3 - Aug 18^th, 2014 at 3:46pm

My idea to reduce inequality is to restrict the wealth. Instead of minimum wages we should have maximum wages and maximum wealth. The cap could be set at 10 million dollars of overall wealth for example and 5000 hectares of land. Anything they gain more will automatically be stripped from them.

I remember in German speaking countries they were recently discussing the idea of a 1/10 rule. That would mean that the salary of the highest paid citizen would be maximum 10 times more than that of the lowest paid full time worker.

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Shakey Gold Member Offline Australian Politics Posts: 905 Gender:	Re: One idea on rising inequality Reply #4 - Aug 18^th, 2014 at 3:59pm Gandalf, do you have a job? I hope what you just described isn't you're full time occupation. At the same time, I see hundreds of cars parked at the local mosque on a Friday when I'm driving home from work. There'd have to be some centrelink parasites in there, huh?
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BatteriesNotIncluded

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people died for this!

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Re: One idea on rising inequality
Reply #5 - Aug 25^th, 2014 at 1:22pm

Shakey wrote on Aug 18^th, 2014 at 3:59pm:

Gandalf, do you have a job? I hope what you just described isn't you're full time occupation. At the same time, I see hundreds of cars parked at the local mosque on a Friday when I'm driving home from work. There'd have to be some centrelink parasites in there, huh?

Centrelink parasites don't exist!

Only for the truly right warmongering wing...

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*Sure....they're anti competitive as any subsidised job is. It wouldn't be there without the tax payer. Very damned difficult for a brainwashed collectivist to understand that I know.... (swaggy) *

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BatteriesNotIncluded

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people died for this!

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Re: One idea on rising inequality
Reply #6 - Aug 25^th, 2014 at 1:23pm

gone wrote on Aug 18^th, 2014 at 3:46pm:

My idea to reduce inequality is to restrict the wealth. Instead of minimum wages we should have maximum wages and maximum wealth. The cap could be set at 10 million dollars of overall wealth for example and 5000 hectares of land. Anything they gain more will automatically be stripped from them.

I remember in German speaking countries they were recently discussing the idea of a 1/10 rule. That would mean that the salary of the highest paid citizen would be maximum 10 times more than that of the lowest paid full time worker.

The second paragraph was interesting... Wink

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*Sure....they're anti competitive as any subsidised job is. It wouldn't be there without the tax payer. Very damned difficult for a brainwashed collectivist to understand that I know.... (swaggy) *

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