Emergic: Rajesh Jain's Blog

Emergic: Rajesh Jain's Blog header image 2

For Richer – Paul Krugman

October 26th, 2002 · 1 Comment

A long article in the New York Times magazine, but worth reading: “Over the past 30 years most people have seen only modest salary increases: the average annual salary in America, expressed in 1998 dollars (that is, adjusted for inflation), rose from $32,522 in 1970 to $35,864 in 1999. That’s about a 10 percent increase over 29 years — progress, but not much. Over the same period, however, according to Fortune magazine, the average real annual compensation of the top 100 C.E.O.’s went from $1.3 million — 39 times the pay of an average worker — to $37.5 million, more than 1,000 times the pay of ordinary workers. The explosion in C.E.O. pay over the past 30 years is an amazing story in its own right, and an important one. But it is only the most spectacular indicator of a broader story, the reconcentration of income and wealth in the U.S. The rich have always been different from you and me, but they are far more different now than they were not long ago.”

Tags: General

1 response so far ↓

  • 1 Ar // Nov 19, 2008 at 10:55 pm

    In the article Krugman suggests that the incerasing inequality of incomes has shifted from a social problem to an economic problem. However, after disregarded three economic theories including globalization, he claims that the biggest contributer to the inequalities is a result of social norms and coporate culture. Contradictory?

Leave a Comment