G0 BIG 0RANGE
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Income inequality refers to the amount paid to the average worker at a corporation vs. the CEO of the organization. Of course the CEO should be and is paid more, but "rising income inequality" refers to which of these two parties' pay goes up and which one stays stagnant. (Assuming both are performing at or above average at their respective job.)
This is a good explanation. Of course CEOs should make more than the lowest level employee, that isn't the argument being made. And no, people shouldn't make the same as you just because. Some levels of income inequality must exist to encourage entrepreneurship, innovation, etc. It's just that the gap has become so large as one group has seen much larger increases in income than the other.
This isn't about envy, it's about stimulating an economy. When middle class workers can barely afford the products they're making, you have a problem. It is the middle class that drives the economy, Republicans and Democrats alike will admit that. The problem is the middle class isn't making as much money from the high levels of production as the upper class is. Typically, the rich save and/or invest their money more than they spend it on goods and services. Money sitting and accumulating interest doesn't stimulate the economy like middle class consumers can.