The pay gap – in both public and private sectors – between the management, the highly exalted few in the upper echelons of any organisation, who hardly create or add [any] value to productivity, and the ‘managed’ lot – who are essentially the real value creators and producers – is alarmingly wide, hence creating an unhealthy concentration of income at the top.
This unhealthy concentration of massive income share at the top, thus creates a situation in which those at the top who take massive incomes have so much to spend, so-called ‘disposable’ income, but can only spend [as] so much [as] their limited tastes and wants [can] dictate.
However, their tastes and wants, in the wider scheme of the economy, are, frankly, a drop in the ocean and therefore, their spending does little to impact and stimulate the economy positively and spur on much needed wider economic growth that benefits more than a privileged few.
The pay gap creates a spending imbalance in the wider economy in which the top 10% who take 90% of the income pie, in any organisation – private or public – certainly earn enough to afford to spend 50% of their earnings on the 10% of all goods and/or services available in the economy.
While, in contrast, the other 90% of the same organisation, left with the 10% of the income pie to share, earn – predictably – barely enough to afford to spend 10% of their earnings on the 90% of all [the] goods and/or services provided and available in the economy.
This is no doubt an economic threat, an economic disaster only waiting to explode, and it ought, indeed, be treated as such and declared an economic emergency. But alas, the ‘talking heads’ – the showmen and women – who run our economies and government are too busy waxing their tongues, much to their personal rather than national interests; to up their personal PR image and stock.
What, for instance, explains why a CEO or head of any organisation, private or public, should earn 100-300 times more than a head of a department or indeed, a staff member of the same organisation?
What value does such person create for/in the organisation than those who earn less in comparison?
What value does a president or head of state of any country create more than the rest of the national population to explain and warrant such individual the difference in their earnings, privileges and wealth than or in comparison to the rest of the national population?
Even more surprisingly, what moral authority does such individual have to talk about and decry such ‘unacceptable’ debilitating wide[ning] pay gap, among the inevitable consequences of which is the spending imbalance in the economy and the grinding systemic poverty?