European Tribune - Comments - The Anglo Disease: regulation vs pay

The Anglo Disease: regulation vs pay | 23 comments (23 topical, editorial, 0 hidden)

Re: The Anglo Disease: regulation vs pay (none / 1)

This graph is also telling:

What is interesting to notice is the difference between the 20s/30s and the recent period: in the 20s, the top 0,01% had a small share of the salaries, whereas in the 90s, they had a much bigger share of the salaries...

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Thu Apr 9th, 2009 at 12:03:21 PM EST

Re: The Anglo Disease: regulation vs pay (none / 0)

That's because in the 1920's they were owners while in the 1990's they were CEOs.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Migeru (migeru at eurotrib dot com) on Thu Apr 9th, 2009 at 01:33:06 PM EST
[ Parent ]

Re: The Anglo Disease: regulation vs pay (none / 1)

Yes, but the high level of wages inequality means the capital/labour ratio is not as relevant as it used to be, because the CEOs high salaries are include in the labour part.

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Fri Apr 10th, 2009 at 04:36:44 AM EST
[ Parent ]

Re: The Anglo Disease: regulation vs pay (none / 0)

My theory is that, after shareholder power was eroded in the post-WWII years, eventually "the wealthy" (pace Colman) realised the control of the corporations had passed to the management and decided to become management. Hence, MBA programs and "executive compensation".

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Migeru (migeru at eurotrib dot com) on Fri Apr 10th, 2009 at 04:41:23 AM EST
[ Parent ]

Re: The Anglo Disease: regulation vs pay (none / 0)

True. See Alfred D. Chandler's "The Visible Hand"

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Fri Apr 10th, 2009 at 04:51:43 AM EST
[ Parent ]

Re: The Anglo Disease: regulation vs pay (none / 0)

But The Visible Hand refers to the period before the 1930's, not after the 1970's.

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Migeru (migeru at eurotrib dot com) on Fri Apr 10th, 2009 at 05:02:00 AM EST
[ Parent ]

Re: The Anglo Disease: regulation vs pay (none / 0)

Yes, but the model developed by a few big companies before the 30's was extended to all the economic sectors/ sizes of companies during and following WWII, together with a huge development of modern manufacturing.

"Dieu se rit des hommes qui se plaignent des conséquences alors qu'ils en chérissent les causes" Jacques-Bénigne Bossuet

by Melanchthon on Fri Apr 10th, 2009 at 05:49:10 AM EST
[ Parent ]

Re: The Anglo Disease: regulation vs pay (none / 0)

Today's CEOs are employees in drag. John Raulston Saul wrote about this at length in the early 1990s: Voltaire's Bastards.

by PIGL on Fri Apr 10th, 2009 at 01:35:03 PM EST
[ Parent ]

The Anglo Disease: regulation vs pay | 23 comments (23 topical, 0 editorial, 0 hidden)

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