Naked Economics Chapter 6
Compensation is not always fair especially during times of labor surplus. Because there is a required minimum wage, every large corporation can pay the same hourly wage of $7.25, because there is no competition between business to have employees. In times of labor shortage, companies will compete by offering higher wages to get employees to sell/create products.
This cycle of relying on a cycle of labor usually is unfair to the employee, as they will always be given the lowest value the company places on them. Some employees can be exceptional while others could care less on the quality of their work, ultimately causing the harder working employee to have the worse end of the deal and accepting mediocre performance on the employer, employee, and customers ends. If employees decided their minimum value, they can obtain the minimum amount of money required to keep them afloat in a middle-class lifestyle.
Their wages, however, should not be attatched to company stock performance, as employees could be working in an field that has a decreasing size and value which may not be able to sustain itself. Even while it is decreasing, employees will then make a less than livable wage, while a CEOs reduced wage will still be more than the employees wage before taking falling stock values into effect.
