It's been a while since I've dusted off my college textbooks. Once the introductory lessons of economics, business, and political science have been committed to memory, I find little reason to go back. Now some 20 years later, I seldom engage in debates about capitalism vs. socialism, or how a planned economy better serves the masses than the free market. I have my moments but despite its flaws, I'm convinced that overall the American way works best.
But then along comes the annual survey of Minnesota's 100 most compensated titans of industry, and those long suppressed revolutionary notions start to rumble inside of me.
Perhaps there are no reasonable economic arguments against the great wealth these 98 men and two women realized. Maybe it is just the natural byproduct of free enterprise. But somewhere along the way, there must be a moral issue here.
One extraordinarily profitable company on the list, whose CEO earned millions, has some workers who are paid so little that even working full time they can't afford housing. They live at various Twin City homeless shelters.
Some on the list are well known for their antiunion activity, trying to make their companies more profitable by sharing less with the workers.
Powerful health-care concerns are present, of course. I know, "socialized medicine" will stifle innovation so we all benefit from fairly compensating the CEO. Yet ordinary families still have to hold bake sales and assorted benefits to pay medical bills for their sick and dying children. Maybe there is a connection here and maybe not.
In 41 of the 100 companies on the list, the stock price declined last year, leaving less for the many shareholders trying to save a little money for their old age. Yet the compensation grows. That money doesn't fall from the sky. The 5 or 10 million that go to one person mean there is less to give to workers and to shareholders.
Maybe I'm wrong about this. Maybe those on the list are really the heroes of the age, bringing jobs and growth to Minnesotans. Maybe I should reread those old textbooks and it will all make sense. But right now, adding up the bonuses and options, stock gains and base salary, something doesn't seem right.
Ed Murphy, director of St. Stephen's Human Services, a Minneapolis nonprofit offering services for the homeless.
© Copyright 2000 Star Tribune
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