Why are executives paid so highly

Discussion in 'Business & Economics' started by Xelasnave.1947, Nov 25, 2016.

  1. iceaura Valued Senior Member

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    23,691
    Depends - there's new swamp area, how big is it compared to lost swamp? There's a new kind of environment - water too deep to freeze solid every winter, with a fertile bottom. And so forth. And there's nothing particularly abnormal about any of it - it's not an order of magnitude longer or deeper than any other beaver dam ever seen, say. It's probably not even the biggest beaver dam, or not by much. It doesn't wreck its own basis for existence. It fulfills the role of beaver dams - very well, even.
    There is. Companies and other such economic entities are purpose built and purpose justified, they have purposes, unlike swamps. They are creations of people, contrived entities, and people's reasons for building and allowing them are their only excuse for existence. Unlike swamps, they can be perverse and destructive of their own reason for being - they can break down in ways that undermine their own justification.
    It's not market capitalism. As you pointed out, market forces would destroy this, and market forces can be easily incorporated into capitalism; it is certainly possible to have capitalist setups that do not abet this, or even allow market forces to punish it. The contrived and circumstantial perversities of badly set up economic structures do not come into being by way of the inevitable workings of the nature of the universe. The bubble of current US executive compensation didn't just happen: as pointed out, some mechanism has to be in place to prevent the Darwinian and market economic consequences of this foolishness from afflicting the perpetrators. That mechanism is a scam.
     
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  3. Xelasnave.1947 Valued Senior Member

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    Could the CEO be replaced with AI.
    After all its a game played by following rules, timetables etc.
    Alex
     
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