Monday, March 20, 2006

The Marginal Productivity of CEOs

That's why the compensation package of the typical CEO is so bountiful, their marginal productivity. Why it's gone up almost 8 times since the 1970s. Then, the average CEO was paid about 40 times more than the average worker. Now, it's 300 times the pay of the average worker.

The preceding is John Snow's reading of the growing gap between high-paid and low-paid Americans. Snow is the Treasury Secretary whose marginal productivity is helping us to break trade and fiscal deficits every year.

Snow's interview in the Wall Street Journal signals another PR push by the administration. This time it's a push to make us realize how well off we are. If you believe that the average American is better off today than he was five years ago, I have a bridge over here that you may want to buy.

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