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A friend of mine on facebook posted a link to an article from Business Insider which I thought might provide some talking points in favor of a more equatable solution to the income gap.The article leads off with a picture of Henry Ford and explains
Henry Ford voluntarily paid his teammates twice the market rate. This was not just great for the team. It was a brilliant business decision.
Ford understood there was no point in building cars that his own employees couldn't afford.Imagine the loyalty that must of inspired for a whole generation of workers.Ford despised unions but when you double pay over nite who cares?This policy also allowed him to halt turnover and retain the best workers.
Some stuff on income inequality below the squiggly thing.
The piece shows a graph which illustrates the fact that Corporate profits have hit an all-time high as a percent of the economy.
The next graph shows that wages are at an all-time low as percentage of the economy.
A final graph shows that capitol investment in everything but housing is way down.
I suppose most of you know this stuff already.This diary is for those who don't.It is beyond me how people don't understand that unless we peons have money to spend the economy will not soon recover. It is exceedingly interesting to me to find this theory in a business publication. The fault the article contends is the business' communities obsession with maximizing profit.They argue that America should be focused on creating value (a subject Thomm Hartman talks about a lot) instead of focusing on profit.