I think there should be a Fair Profit Law that limits how much profit can be made on a product or service. I think a 10% limit would be fair. There should also be a Fair Pay Law that pins the ratio of the salary and benefits of CEOs to the lowest paid employee. For example, we could use a ratio of 300 to 1. If the CEO is earning $3,000,000 (salary, bonuses, stock options and Golden Parachute) the lowest paid employee would be paid $100,000. If the CEO gets a bonus or increase in compensation (stock options, etc.), the lowest paid employee should get a raise of the same percentage to maintain the 300 to 1 ratio. So, when the CEO gets a 10% bonus or $300,000, the employee gets a 10% bonus or $3,000.
Another part of the problem, in my opinion, is that consumers pay too much for products and services that are providing excess profits to the rich. There should be transparency on the real cost of products and services. We already have labels for nutrition and the country where the product is made. I propose adding more information to the label. Here are the items that should be disclosed on a label on all products and services:
- The actual percent of the cost that is contributed toward profit. If we knew this, most of us would not purchase anything with excessive mark up. I think 10% or less is a fair profit.
- The salaries of the CEO, the Chairman of the Board, the CFO and the salary of the lowest paid employee. It must include all the perks, stock options and golden parachutes.
- The percentage of the product or service that is from outside of the USA.
This won’t solve the inequality, but it’s a start.
Author’s Note--This post is semi-serious.