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Executive salaries

Income Distribution and Executive Salaries

This paper's main topic is income distribution. The paper begins with definitions of the terms income and distribution. Also, the paper defines a social class and provides a breakdown of the seven different social classes within the United States. Additionally, the term household is defined. These definitions are provided to lend support to the paper.

The paper goes on to discuss some reasons for the disparity in income distribution within the United States and some possible reasons for this disparity in income distribution. The paper closes with a brief discussion about executive salaries and the disapproval and contempt these salaries bring out in Americans. The paper concludes with the argument that America should closely look at our nation's foreign policy to ease the disparity in income distribution.

Income Distribution and Executive Salaries

"Of the people, for the people, by the people," (Cato Institute, 2000, p. 10), are famous words indeed! However, many in America today believe "Of the rich, for the rich, by the rich," have replaced these words. Could the reason for this opinion be that our economy produces remarkable wealth and people feel th


Perhaps our culture and our winner-take-all mentality explains our adoration for extremely high paid athletes (which is equivalent to executive salaries). All of us want our favorite teams, regardless of the sport, to produce a champion. For example, the St. Louis Cardinals had a very good season in 2002. They won their baseball division and made it to the championship series where they lost. Afterwards, a lot of fans were saying that the manager of the St. Louis Cardinals, Tony LaRussa, did not mage the team as well as he should have during the championship series. Further, a lot of fans were saying that with their payroll, the St. Louis Cardinals should have won the World Series.

"Partly in the eye of the beholder...the sense of deprivation...for minimal food, shelter, or health care...depends on how other people live in the same society at the same time" (Page & Simmons, 233). The key phrase here is "partly in the eye of the beholder." In this instance, the beholder would be American society. We are a benevolent society. Seeing people live in poverty in such an affluent nation brings out the benevolence in most Americans. Therefore, could this be a perspective issue rather than a social inequality issue. Probably not. All of us can see poverty in America.

Working poor: Receives an income between $18,000 and $30,000.

So far, we have looked at our nations foreign policy, the economic and financial habits of some American households, and discrimination in an attempt to try to determine the disparity in our incomes. One aspect of this income distribution inequality that has not been discussed is the possible perception regarding executive salaries.

The absolute truth of the matter is that there are people living in the United States who are trapped in poverty. There are no clear-cut answers to easing this burden on our fellow Americans. Those of us who live and work within the middle classes are more apt to see and feel poverty than those in the upper classes. However, our government should be able to see poverty very clearly.



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Approximate Word count = 3341
Approximate Pages = 13 (250 words per page double spaced)


  

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