Some people love to howl about "corporate greed" and "outrageous CEO salaries".
As usual, Thomas Sowell blows this fallacy out of the water.
Key point:
"Given the high degree of specialization in a modern economy, demand'ng that everything 'justify itself before the bar of reason" means demanding that people who know what they are doing must be subject to the veto of people who don't have a clue about the decisions that they are second-guessing."
That's typically what the perpetually clueless in economics usually do.
That's what the perpetually clueless in a lot of fields do.
ReplyDeleteExample: The N&R and the GPD mess.
But based on my own experience with corporate greed, I still take issue with the enormity of these CEO salaries/compensation packages.
I don't think incompetency, unethical behavior, and the old boy networking that you are referring to falls into the category that Sowell is talking about, Mary.
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