By Robert Reich
IT’S OFTEN ASSUMED that people are paid what they’re worth. According to this logic, minimum wage workers aren’t worth more than the $7.25 an hour they now receive. If they were worth more, they’d earn more. Any attempt to force employers to pay them more will only kill jobs.
By this same logic, CEOs of big companies are worth their giant compensation packages, now averaging about 300 times the pay of the typical American worker. They must be worth it or they wouldn’t be paid this much. Any attempt to limit their pay is fruitless because their pay will only take some other form.
“Paid what you’re worth” is a dangerous myth.
Fifty years ago, when General Motors