What are your attitudes toward income inequality? Do you think people would be happier as a whole if there were not such big differences in income levels across society?

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Pretty easy answer—yes. The middle class has been shrinking for decades while the rich and poor classes have grown. Corporate profits have grown, yet average worker wages have not kept up with cost of living/inflation. In 1965, the CEO-to-worker pay ratio was 20:1. Today, it’s somewhere close to 399:1.

“From 1978 to 2021, CEO pay based on realized compensation grew by 1,460%, far outstripping S&P stock market growth (1,063%) and top 0.1% earnings growth (which was 385% between 1978 and 2020, according to the latest data available). In contrast, compensation of the typical worker grew by just 18.1% from 1978 to 2021.”

“The dramatic increase in CEO compensation during the pandemic is remarkable. While millions lost jobs in the first year of the pandemic and suffered real wage declines due to inflation in the second year, CEOs’ realized compensation jumped 30.3% between 2019 and 2021. Typical worker compensation among those who remained employed rose 3.9% over the same time span.”

I’m primarily a believer in the free market for most things and having the “invisible hand” guide us to efficiency, but something isn’t mathing here. Money isn’t being distributed according to actual economic productivity, which is actually a failure within capitalism. And a healthy middle class is the backbone of society. This path we’re on isn’t sustainable.

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When people are struggling is when capitalism takes advantage of them. I love capitalism but truth be told, it favors some people and keep others working hard for the top.

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