The difference between the salaries of CEO's and that of the average worker is enormous. For...

The difference between the salaries of CEO's and that of the average worker is enormous. For example, the CEO's of CBS, Viacom, and Oracle each made over 50 million dollars last year. Dara Khosrowshai, the CEO of Expedia, made nearly 100 million. On the other hand, the average worker's salary has stagnated. Many working Americans have to work two to three jobs just to put food on the table for their families. Although there have been some efforts to raise the minimum wage, some experts think that we are seeing the end of the middle class in America. To what extent is corporate behavior and/or practice responsible for the present economic disparities? What sort of moral principles--especially principles of distributive justice--should they follow to help rectify the situation?

Expert Solution

The top 0.1% has tripled their income whereas the middle class has to work on two or here jobs for a decent living creating a wide income disparity. There are many reasons for the disparity and one is the corporate behavior. Some of the points of economic disparity due to corporate behavior are:

A huge increase in the income of the people at the top and stagnation of income at lower section.
Result of increased pressure to maximize shareholder wealth and it led to drive down all firm costs, especially the wages of employees.
No employment-related rights for employees to participation in profit.
Unlawful Collision between corrupt officials and corporate, result in Government favoring monopoly and it result in rich becoming more rich and poor more poor.
Lack of organised labor in corporate sector reduced their power to bargain for higher wages.

Steps to rectify the situation:

More power to the workers in the distribution of wealth generated by the corporation
Proper distribution of profit share among workers.
Increase the minimum wage
Invest more in Education
Following Tax code properly.
Providing proper increment for the workers
Introducing Innovative methods to increase production and thereby increasing profit.
Building assets for working classes

Rahul Sunny answered 3 weeks ago

what is the difference between knowledge worker and learning worker? what are the characteristics of a...

what is the difference between knowledge worker and learning worker? what are the characteristics of a " learning worker"? (200 minimum)

A social worker was interested in determining whether there is a significance difference in the average...

A social worker was interested in determining whether there is a significance difference in the average monthly cost per child for childcare outside the home between state supported facilities and privately owned facilities. Two independent random samples yielded the following information: State Supported Facilities (population 1) Privately Owned Facilities (population 2) Sample Size 64 64 Sample Mean 705 675 Standard Deviation 95 80 Which Excel will calculate the test statistic? a. =(705-675)/(SQRT(95/64+80/64)) b. =(705-675)/(SQRT(95^2/8+80^2/8)) c. =(705-675)/(SQRT(95/8+80/8)) d. =(705-675)/(SQRT(95^2/64+80^2/64))

I. Answer the following questions. 1. You believe that there is a difference in salaries between...

I. Answer the following questions. 1. You believe that there is a difference in salaries between genders in your industry. You know that the average salary for males is $100,000 per year, but you cannot find any information on female salaries. Thus, you collect data on female salaries to test your belief. For your study, what would be your null hypothesis? a. mean < 100,000 b. mean = 100,000 c. mean < = 100,000 d. not enough information 2. Suppose...

(a) Explain the difference between a point estimate and an interval estimate. (b) The starting salaries...

(a) Explain the difference between a point estimate and an interval estimate. (b) The starting salaries of a random sample of three students who graduated from North Carolina State University last year with majors in the mathematical sciences are $45,000, $35,000, and $55,000. (i) Find a point estimate of the population mean of the starting salaries of all math science graduates at that university last year. (ii) The margin of error for a 95% confidence interval is known to be...

You believe that there is a difference in salaries between genders in your industry. You know...

You believe that there is a difference in salaries between genders in your industry. You know that the average salary for males is $100,000 per year, but you cannot find any information on female salaries. Thus, you collect data on female salaries to test your belief. For your study, what would be your null hypothesis? A. µ < 100,000 B. µ = 100,000 C. µ ≤ 100,000 D. not enough information

Is the difference between the mean annual salaries of statisticians in Region 1 and Region 2...

Is the difference between the mean annual salaries of statisticians in Region 1 and Region 2 more than $8000? To decide, you select a random sample of statisticians from each region. The results of each survey are shown to the right. At α=0.10, what should you conclude? Answer A-E Region 1 x1 = $68,300 standard deviation = $8,750 n1 = 47 Region 2 x2 = $63,000 standard deviation = $9,275 n2 = 40 A. What are the alternative and null...

1. What is the 95% CI for the difference between the mean starting salaries of those...

1. What is the 95% CI for the difference between the mean starting salaries of those who stay at least three years and those who leave before 3 years? Can you say that you are 95% sure there is a difference? Case Study: Employee Retention at D&Y Employee Starting Salary On Road Pct State Univ CIS Degree Stayed 3 Years Tenure 1 38900 57% Yes Yes No 11 2 42300 68% Yes Yes No 5 3 39800 75% No Yes No...

CEO pay is a 'hot button' issue in many countries today. The average CEO's pay is...

CEO pay is a 'hot button' issue in many countries today. The average CEO's pay is 183 times that of the average employee. In 1965 this average was 20 times. Your book indicates this ratio is 135 in Australia and 73 for the Netherlands. Some companies have frozen executive pay and are migrating to tying pay to performance and awarding performance stock awards and bonuses. Based on the presumption that there is a pay imbalance between CEO's and workers, how might...

When can we say that the wage difference between a worker without a college degree and...

When can we say that the wage difference between a worker without a college degree and a worker with a college degree is not a result of discrimination?

1. Explain the difference between the difference quotient and average rate of change . create a...

1. Explain the difference between the difference quotient and average rate of change . create a problem for your classmates a problem to solve using the avergae rate of change . 2. A classmate who is confused about limits wonders why you incestigate the value of a function closer and closer to a point , instead of jus finding the value of a function at the point. How would you respond? post a problem evaluating a limit numerically or graphically...

Question