Comments: It's Good To Be King

Nice summary of how bad things are. I believe that someday America may become a capitalist nation, but till then we will have rule by the rip off artist, that is, the CEO. It is worth remembering that every penny that goes to the CEO is a penny that does not go to the capitalists, that is, the investors. And the investors are, in part, people like you and me, investing through our 401ks and mutual funds. But even if there were no 401ks and mutual funds, even if the middle class stayed out of the stock market and left it to the rich, I think we would still get much better economic performance if the investors (the rich investors) had more power to control their corporations. As things stand now, CEOs have to be outrageously bad before enough stockholders band together and threaten a board revolt. In normal times, the CEO gets to hand pick their board, and therefore control it, to the detriment of those who actually own the company.

Let's suppose for a moment that right-wingers are correct when they say labor unions are evil because the power of labor unions causes money to be diverted from the capitalists to the workers. If that's true, then the power of the CEO's is equally evil, as the CEO's, just like the labor unions, divert money from the capitalists and into their own pockets.

Socialism and capitalism may have their flaws, but I believe CEO domination represents the worst of both worlds.

Posted by Lawrence Krubner at May 19, 2004 10:41 PM

What always astonishes me is the claim that "market forces" drive these appalling salaries. They say they can't hire anyone competent for less than $50 million a year.

Posted by Anne at May 23, 2004 09:32 AM