Kevin Williamson is a fierce #NeverTrump member…..His words are hollow if he cannot choose #NeverHillary….rsk
The politics of blame are a funny thing. We will blame anybody and everybody for any and all imaginable problems — except the people who actually have blame coming.
Nobody really cares very much about evidence, reason, argument, etc. What they care about is telling a story with good guys and bad guys, and that the right people are cast in each role.
For the left, that shapes everything from economic thinking to foreign policy.
For example, we hear a great deal about economic “inequality,” a term that, in an open and dynamic society, means almost nothing. What the Left wants it to mean is that the poor are poor because the rich are rich, and that the middle class is struggling because corporate profits are high and billionaire playboys forget how many yachts they have. But that simply is not the case, as anybody who has even a passing familiarity with the actual economics literature on the subject can tell you. A $10-an-hour job pays $10 an hour because $10 an hour gets you somebody who can do that job. If both Bob and Sam can do the job and Bob wants $12 an hour while Sam will do it for $10 an hour, it’s a $10-an-hour job, and Sam has it.
It’s not the case that it would have been a $12-an-hour job if only the CEO made $500,000 a year instead of $700,000. (The average salary for a U.S. CEO is in fact a little less than $200,000 a year; those wild numbers you see in the news are for the CEOs of a relatively small number of very large global firms; in the same way, the compensation figures for the category “basketball coaches” can go very different ways depending on whether you’re talking only about the NBA or including high-school coaches.) It is true that costs get shifted around within and between companies, and it’s probably true that they get shifted more onto lower-wage workers than higher-wage workers, because those workers are, generally speaking, less in demand. (That’s why they are lower-wage workers.) But CEO pay usually isn’t a real big chunk of a corporation’s financial picture. In 2011, Apple’s chief executive, Tim Cook, was the highest-paid CEO on God’s green Earth, and his paycheck, large though it was ($376 million), amounted to about three-tenths of 1 percent of Apple’s revenue that year. The groundskeepers and secretaries in Cupertino don’t get paid what they get paid because of fluctuations within an approximately 0.3-percent-of-revenue outlay.
You might see some compensation-rejiggering effects from a proportionally much larger outlay, such as the 24.2 percent of its profit Apple paid in taxes that year.
Because we have a free market in labor, it isn’t always clear or straightforward how changes in companies’ expenses affect workers’ compensation. It’s not like Apple or Walmart or GE can simply declare a wage and expect programmers, warehousemen, and engineers to just show up. Workers have choices, too, though some have more choices than others. But if you think that paying the CEO a lot drives down workers’ wages, wouldn’t you also think that other expenses would put downward pressure on wages, too? And which would produce the heavier pressure: $376 million for the CEO or $8.3 billion for the IRS?