Pope attacks mega-salaries and wealth gap in peace message

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Once again, you clearly don’t understand the principal-agent problem. If you did, you might understand that there is a huge difference between a rapper selling a million records and the incentives faced by managers of companies relative to the owners when there is a separation of ownership from control of a company. As far as the rapper is concerned, if there are willing customers for his product, who am I to complain?

I am not sure that being a CEO is any better than being a rapper. If the CEO didn’t exist, someone else would take his or her place, same thing with the rapper. Neither of them are indispensable.

The principal-agent problem is does not really vary by industry. CEOs can be self serving in virtually any industry.

You are the only one who brought up these four characters here.

Greed is part of our culture that needs changing. It is part of every culture.
Greed is part of EVERY culture. It is part of human nature. It will not change. Get used to it.

And your agency analogy is pointless hair splitting. Unless the corporation has violated a law, the Board can hire whomever they want for whatever reason they want him/her.

How about addressing the issues or as HappyCatholic noted, you’re just having fun arguing?

Lisa
 
Trying to capture some of the thoughts on the topic****

A Fable
Past – Present – Future

(draft)

Past - In the beginning the people resisted their rulers, rebelled and won independence. Those who owner land or paid taxes won the right to share in ruling. This only happened when many people acquired some wealth, such that there was a middle class. When the middle class took part in government along with the upper class and nascent corporations the country had democracy

Present to near future- Over time, the middle class grew rich in wealth and the upper class along with the corporations, who were now legal people, became accustomed to privilege and status. They cared more for power and prestige than anything else. Some of them became jealous of greater men and corporations. Some of them oppressed the poor and the weak. When many people came to resent their status the upper class along with corporations perverted democracy into oligarchy.

Future - The poor grew in numbers. The middle class was ruined by inflation and debt. Customs faded. Insecurity returned. Many were seduced by popular leaders who promised relief and competed for power. When the middle class and the poor were pitted against the rich, oligarchy turned into ochlocracy. (mass rule)

If the plot reminds you of anacyclosis, you are right.
 
Insulting anyone is a bad idea. My concern is that there’s a lot of people who say they care and are worried about the poor, but don’t do anything about it. Not only that, they seem to think its utterly impossible for a poor person to be scamming the system, especially in Western EU or North America.
I agree with you that fraud is a concern but I don’t see how the poor have a monopoly on that. They are just the low-hanging fruit as far as criticism is concerned. For example, modern business practices (justified as “it’s just business”) often are based on using knowledge of human psychology to manipulate people, and are sometimes frankly dishonest.
Think about it----how would God look at someone who chooses sloth over trying to be productive?
Neither is sloth a preserve of the poor - some forms of sloth are just more profitable than others. Just recently CNN has been doing exposés of so-called charitable non-profits which scam donors (a large proportion of whom are elderly retirees) by collecting money for causes that do little more than line the pockets of their directors or of the PR firms they use.
The sins that get talked on CAF a lot are usually lust, greed or along the lines of an obligation.
I agree. It seems that the least talked-about sins (dishonesty in its countless manifestations is perhaps top of the list) seem to be the most ubiquitous. But when they are talked about, the effort to limit them to a particular group of people (like the poor) is in itself out of sync with reality.
Sloth is a sin too, and I think people can question the status of the “poor” especially in the USA in some cases because there’s a lot of people getting benefits to live a certain affluent lifestyle that could be going to someone who really need it.
An affluent lifestyle on foodstamps - I guess it is possible. Don’t get me wrong, fraud in government assistance (or anywhere) is indeed something to work to stamp out; I just don’t believe in throwing out the baby with the bathwater. My insurance company gives reminders to subscribers to report any fraud they encounter in the course of seeking health care…I am yet to hear someone suggest that because of the regular reports of some clinic/doctor busted for fraud, the health care industry as a whole should be considered incurably fraudulent.
But do you understand what the Pope is saying? Have you read it yourself or do you rely on corrupt journalists with an agenda to do the homework for you?
I understand the meaning of “is”…if that’s what you’re asking. 🙂
Let’s just that I’m irritated because I expect more from Catholics, and it’s safe to assume God does too since we have graces and the Truth.
No one should take that lightly.
What posts of mine fail to live up to your standards for Catholics? The one thanking the Pope for upholding the dignity of the poor, as the Church has always done…or the subsequent ones in the same vein?
 
Greed is part of EVERY culture. It is part of human nature. It will not change. Get used to it.
Then the pope is wasting his time writing about it, isn’t he?
And your agency analogy is pointless hair splitting.
You are saying that the principal-agent problem does not exist?
Unless the corporation has violated a law, the Board can hire whomever they want for whatever reason they want him/her.
And a woman can procure an abortion for any reason she wants, that is legal too. Actually corporate boards cannot hire whomever they wish, they are accountable to shareholders and can face lawsuits if they do not act in the shareholders best interests.
How about addressing the issues or as HappyCatholic noted, you’re just having fun arguing?
You are the one not addressing the issues.
 
Neither is sloth a preserve of the poor - some forms of sloth are just more profitable than others. Just recently CNN has been doing exposés of so-called charitable non-profits which scam donors (a large proportion of whom are elderly retirees) by collecting money for causes that do little more than line the pockets of their directors or of the PR firms they use.
I think a big difference is that the effects of sloth are more noticeable with the poor and have more practical effect. I have a friend who makes about $500k per year and his kids are bums. He complains about the fact that they don’t work, yet he buys them cars, lets them stay for free in his rental housing, etc. A poor person who does the same thing we see on the street as a street bum.
 
Then the pope is wasting his time writing about it, isn’t he?

You are saying that the principal-agent problem does not exist?

And a woman can procure an abortion for any reason she wants, that is legal too. Actually corporate boards cannot hire whomever they wish, they are accountable to shareholders and can face lawsuits if they do not act in the shareholders best interests.

You are the one not addressing the issues.
No the Pope isn’t wasting his time discussing the issues of poverty in the world. But I am wasting time arguing with you about arcane and totally irrelevent issues such as your agency jones. It is neither interesting or relevant to the topic. I’ve tried to continue discussing root causes for poverty and the wealth/income gap but you insist running down rabbit trails. Don’t look but I’m not longer following 😃

I think the Pope is doing an incredible job bringing out these issues from the Church’s perspective. He is justified in telling all of us to look to our own actions, our own attitudes as well as taking on societal ills. I do believe that poverty in America is far different than poverty in Third World countries—both in severity (individual and collective) and in root causes. Addressing poverty isn’t a one size fits all endeavor. In sub Saharan Africa, the roots of poverty are in the violence and corruption and lack of government or rule of law. In fact the Economist, hardly a bastion of right wing nuttery, pointed out that the severest poverty exists in countries where property rights are not protected. In America we do have those rights and thus a person can use his resources and energy to start a business or take a job. In a lawless country, even if you teach a man to fish, the government takes away his pole and pushes him off the dock.

We are unlikely to impact poverty in far away lands, however we can do something in our own cities or states. I’m a believer in access to better education as a way out. Also teaching young people the consequences of their sometimes unproductive if not destructive actions. IOW when Planned Parenthood comes into the school to teach techniques and “safe” sex instead of giving the story of the mental, emotional, physical and financial consequences of pre marital sex, they should be stopped. Individual concerned moms have done just that.

What are you doing besides arguing?

Lisa
 
Trying to capture some of the thoughts on the topic****

A Fable
Past – Present – Future

(draft)

Past - In the beginning the people resisted their rulers, rebelled and won independence. Those who owner land or paid taxes won the right to share in ruling. This only happened when many people acquired some wealth, such that there was a middle class. When the middle class took part in government along with the upper class and nascent corporations the country had democracy

Present to near future- Over time, the middle class grew rich in wealth and the upper class along with the corporations, who were now legal people, became accustomed to privilege and status. They cared more for power and prestige than anything else. Some of them became jealous of greater men and corporations. Some of them oppressed the poor and the weak. When many people came to resent their status the upper class along with corporations perverted democracy into oligarchy.

Future - The poor grew in numbers. The middle class was ruined by inflation and debt. Customs faded. Insecurity returned. Many were seduced by popular leaders who promised relief and competed for power. When the middle class and the poor were pitted against the rich, oligarchy turned into ochlocracy. (mass rule)

If the plot reminds you of anacyclosis, you are right.
Horrible fable. Where are nonhuman characters and the moral? You can’t have a fable without a moral. 😛
 
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Dawnia:
Quote:

Originally Posted by frobert

Trying to capture some of the thoughts on the topic****

A Fable
Past – Present – Future
(draft)

Past - In the beginning the people resisted their rulers, rebelled and won independence. Those who owner land or paid taxes won the right to share in ruling. This only happened when many people acquired some wealth, such that there was a middle class. When the middle class took part in government along with the upper class and nascent corporations the country had democracy

Present to near future- Over time, the middle class grew rich in wealth and the upper class along with the corporations, who were now legal people, became accustomed to privilege and status. They cared more for power and prestige than anything else. Some of them became jealous of greater men and corporations. Some of them oppressed the poor and the weak. When many people came to resent their status the upper class along with corporations perverted democracy into oligarchy.

Future - The poor grew in numbers. The middle class was ruined by inflation and debt. Customs faded. Insecurity returned. Many were seduced by popular leaders who promised relief and competed for power. When the middle class and the poor were pitted against the rich, oligarchy turned into ochlocracy. (mass rule)

If the plot reminds you of anacyclosis, you are right.

Horrible fable. Where are nonhuman characters and the moral? You can’t have a fable without a moral.
It needs a lion, a fox and some pigs, preferably siblings. Maybe a scorpion, too.

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As Catholics, we should be standing against ANY insults.

I was not talking about criticism of any approach to poverty - I was referring to the demeaning way that some were referring to poor people.

Since I did not give a single example, but my comment has created such a furor, I guess we all understand exactly what I was talking about.

And I will repeat my thanks to the Pope for setting us straight on this score.
While it is noted that you don’t provide examples to back up your claims when requested, I will try again, hopefully not in vain: how were some referring to the poor in a “demeaning way” ? Is it demeaning to point out that individual choices (as opposed to CEO salaries or the “unfettered free market” are often to blame for people living in poverty? (which reminds me, I was asking you to provide an example of “unfettered capitalism” in America and you never gave me one, yet you criticized “unfettered capitalism in America” . 🤷

One more thing: failed policies deserve ridicule.

Ishii
 
Code:
I heard you and I still disagree. No matter who you are or where you come from the right to a living wage remains the same. The Bible has recurring themes of protection for the rights of the weak (orphan/widow/foreigner) and the poor. I guess our Maker understands how much repetition is needed to convince us He really means something He says.
Really? What about 2 Thessolonians 3:10? If you don’t work, you don’t eat. In our system, you have a right to 12 years of education, and all the opportunities you can take advantage of. Many have worked hard and moved up. Indeed the bible says to protect the weak. Don’t remember the bible saying that government should take care of that, or that individuals are left off the hook.
I will add that the small business owners I know personally are able somehow to run profitable companies and STILL treat their workers (both in pay and in attitude) like valued assets. So perhaps we should be going out of our way to support such businesses.
I work for a large corporation that I guarantee you is concerned about its bottom line. It also pays a good wage - especially for those who are willing to work hard and stick it out - things get better. I recall when I worked in the retail side of the business I used to see people come in and fill out a resume - just to fulfill the requirements of staying on unemployment. They had no intention of getting hired. Not all the poor are saints, Seekerz. And some are probably more greedy than the CEO of Walmart. YOu should try to be more objective and move beyond ideology.

Ishii
 
You have no idea what I wish for (in this case, I made no wishes). I am often mischaracterized here by those who assume.
Uh, pnewton, I was responding to this:
I think what is being asked is not an abandonment of capitalism, but examining how free it is and whether it is restricted in a manner that benefits all of society. Unrestricted capitalism has been condemned by previous popes, as has communism. Now we can look at what restrictions work and what do not, but I have to agree with the Holy Father that current compensation disparity is an indication of a broken society.
That sound to me like you are wishing for more restrictions and a stronger central government. If so, then indeed, I hope your wish does not come true. If you are saying something else, then perhaps you could clarify. 🤷 (if you’re saying we don’t need more restrictions then I stand corrected, and admit I misunderstood you. But reading your post it looks like you’re hoping for more restrictions).

Btw, communism/socialism has been condemned by the Church. Capitalism has not. What you’re saying is, “bad capitalism is bad” (which is to say, “bad capitalists are bad”. Fine. Agree. But Capitalism is not bad in the way that communism or socialism is inherently bad and you are wrong imply that the Church has condemned both as evil.

Ishii
 


Further we do no service to the poor by being dishonest and patronizing. In America the vast majority of the poor are there because of poor decision making by themselves, their parents, or sadly generations before.

By way of analogy, then would you also say that a teenage girl who wears tight jeans deserves to be sexually molested? I can’t say that I am a fan of the practice of “blaming the victim.”
As to mega salaries for CEO’s, while I do not personally think they deserve them in many cases, we have to be equitable in our attitude. What about sports figures? Celebrities? Actors? Musicians? Do THEY deserve millions more than us great unwashed who pay to see them? Why don’t they say STOP!!!
Lisa
The average worker makes just under $20/hr in the US. The top 100 CEO’s average around $20,000 per hour. Personally, I can’t think of anything that the CEO of Pier One Imports does which would warrant compensation just under $20 million. Any good manager can do what any other good manager does. There is nothing magical about it. In the case of Ellison at Oracle, and his $95 million, I believe he did found the company. That is another story. I question the social justice of anyone personally buying the island of Lanai in Hawaii. It just seems obscene to me.

On the topic of performers of all sorts. That is somewhat different in my view. They actually do something unique. Also, fans are not obligated to buy a ticket. The same holds for other discretionary consumption. An orthopedic surgeon may be very well compensated in the $300K+ range for her training and particular aptitudes and skills, but a plastic surgeon with a practice of elective aesthetic procedures may be compensated at 10 times that rate, or more. In the latter case, the patients are all paying the high fees entirely voluntarily. In the former, you don’t really have a choice when you need orthopedic care. You need medical attention.

One of the peculiar things about CEO pay is that the lobbyists for these large companies, who have been hired by the CEO’s, have seen to it that oversight of their pay is nearly impossible by shareholders of the companies. The board and directors and executive committees decide what to pay themselves. That might be the biggest problem. I would be in favor of the shareholders voting on the salary structure of any publicly held company, just as the ownership of any private company makes such decisions.
 
By way of analogy, then would you also say that a teenage girl who wears tight jeans deserves to be sexually molested? I can’t say that I am a fan of the practice of “blaming the victim.”
This is not about “blaming the victim”. Its about being truthful. If a person thinks smoking pot is more fun that doing homework, and that behavior leads them to not get a good job, are they a victim? If I intentionally put my hand on a hot stove, am I a victim?

I don’t think your analogy fits at all.
 
Horrible fable. Where are nonhuman characters and the moral? You can’t have a fable without a moral. 😛
It’s a meta fable about the history of civilizations, it’s all in your subconscious if you dare to look.
 
This is not about “blaming the victim”. Its about being truthful. If a person thinks smoking pot is more fun that doing homework, and that behavior leads them to not get a good job, are they a victim? If I intentionally put my hand on a hot stove, am I a victim?

I don’t think your analogy fits at all.
Neither do I. But turning the discussion back to demonizing the messenger is a convenient way to shut down the discussion. Hate Obama’s policies? You’re a racist. Support traditional marriage. You’re a homophobe. Point out the reality that having children out of wedlock is a major driver of poverty in this country. You must hate poor single mothers! Yeah right…

It is not blaming the victim to point out the reality that is supported by every statistic, every study, and frankly your own two eyes. Volunteer for any kind of social services organization and you see fractured or unformed families, single mothers and uninvolved fathers as a major component of those receiving services. Add to that a lack of education or training and often substance abuse and you have the cascade of bad decision making that puts and keeps people in poverty.

That being said, while the decisions are often counterproductive, our multi generational dependence on government largesse, the sheer size of our country and government and the lack of subsidiarity in these policies means that those born into these situations have little chance to move out of them. Not because anyone is stopping them from getting a high school diploma (or additional education/training), forcing them to have babies before marriage or start drinking or drugging, but because they have precious few models of a more productive way of life. One charity that works with inner city youth to try to get them to be abstinent and avoid drugs and stay in school noted that fewer than 10% of the children have ever seen a traditional American family situation…a father and mother married to each other, a father who provides for his family and takes responsibilty for his wife and children. Children learn what they live.

But hey it’s so much easier to pick on Bill Gates or Jeffrey Immelt than to address and attack the real drivers of poverty.

Lisa
 
Leo XIII:
From Quod Apostolici Muneris
From Rerum Novarum
From Pius XII, Christmas Message, 1944:
From John Paul II, Sollicitudo rei socialis
Also, please note Pius X, Notre Charge Apostolique as well as John XXIII, Ad Petri Cathedram (38-40).
I am not, repeat not, trying to use those as an excuse for an excessively compensated CEO cheating a line worker from his/her wages or, for that matter, artificially depressing salaries through despicable actions like bringing in lower-paid illegal aliens or fraudulently asserting a lack of talent in a justification for H1B visas…or the like. But the mere existence of inequality, at least if one would believe Leo XIII, Pius X, Pius XII, John XXIII, or John Paul II, is not the issue. What those with wealth do with their money and how they treat their subordinates is the issue. Do they respect the inherent human dignity of their subordinates? And so on. If they do, then I congratulate them. If they don’t, well, no government power in the world will stop them from cheating if they wish to cheat.
I’d like to thank you for your response to what I said. It is clear to me that what I said is not accurate and not what I actually intended to say. I was posting in haste and when one does that, one is prone to make mistakes.

The Popes and the Church, as you have so thoroughly pointed out, long recognized that wealth inequality is a part of the human condition, irrespective of the economic system in which it occurs. Wealth inequality is clearly not something unique to the capitalist system, and I was mistaken to imply that it is.

What I do maintain is that capitalism inexorably tends toward greater concentration of wealth and power in fewer and fewer hands. This is undoubtedly what has happened and is happening now in the United States, whose government was set up from the beginning to favor the interests of the creditor (read: usurer) class at the expense of the debtor (read: labor) class.

In a system of state sponsored usury (capitalism), in which the government is given the power to enforce usurious contracts, the distinction between “government” and “the private sector” becomes murky indeed, because often the interests of one or the other are the same.
 
Since when did cutting people’s taxes not benefit the individual? I am not a millionaire, but would greatly benefit from the exorbitant tax rates I get hit with as an independent contractor.

The right has offered many solutions to combat the every growing poorer classes, and is shouted down at every turn. Health savings accounts are wildly popular, and now illegal under the ACA. School choice and vouchers programs would attack the problem of education early on and give most parents a choice, but because it doesn’t create the exact same scenario for 100% of the population, is shouted down for being unfair. Trying to solidify the black hole that is medicare is stopped before it ever gets voted on. Means testing was removed by this President against the wishes of the Republicans.

Any time a conservative brings up the destruction of the family, the dissolution of marriage, the importance of prayer in school, all things that any Catholic would acknowledge as good things to address, they get called whackos and people whine about the non-existent separation of Church and state. Many of the problems in this country could be fixed by returning to God in all facets of society, but if you mention that, you are called a right wing nut.

Many Republicans have called for the dissolution of numerous parts of the government to free up money for actually critical investments that could help the neediest among us, but smaller government is someone a bad thing. Programs like the keystone pipeline, which would lead to so many precious jobs, are shot down because apparently the left cares about the poor, just not as much as they do trees.

The list could go on and on. But if you agree that throwing money at the problem accomplishes nothing, why give any credit to the left? For they are then accomplishing nothing. No one should get credit for saying they want to help the poor, when in fact their actions do nothing.
This is a great post! 👍

It should be noted that tax cuts help those that actually pay taxes. Many middle class people would benefit greatly from a tax cut.
 
If we want to reduce poverty levels we have to change the culture that pushes, allows or even forces people into these poor decisions. Taking away Jeff Bezos’ salary does not change the trajectory of these people’s lives.
Lisa, as I have stated numerous times before. If one does the math, even if the CEO and other top executives gave back 100% of their salaries for distribution to their workers, it would only mean pennies in the paychecks of the workers.

The numbers are out there since Amazon, Wal-Mart, McDonalds are all publicallhy traded.
 
Insulting anyone is a bad idea. My concern is that there’s a lot of people who say they care and are worried about the poor, but don’t do anything about it. Not only that, they seem to think its utterly impossible for a poor person to be scamming the system, especially in Western EU or North America.

Think about it----how would God look at someone who chooses sloth over trying to be productive?

The sins that get talked on CAF a lot are usually lust, greed or along the lines of an obligation.

Sloth is a sin too, and I think people can question the status of the “poor” especially in the USA in some cases because there’s a lot of people getting benefits to live a certain affluent lifestyle that could be going to someone who really need it.

But do you understand what the Pope is saying? Have you read it yourself or do you rely on corrupt journalists with an agenda to do the homework for you?

Let’s just that I’m irritated because I expect more from Catholics, and it’s safe to assume God does too since we have graces and the Truth.

No one should take that lightly.
The quote “to much is given, much is expected” works both ways.

We give people free/subsidised education and a safety net in case they fall on tough times. We do this in hopes that they can become productive members of society.

As a net tax payer, I have every right to question how my money (as well as everyone elses) is used.
 
That’s fine, but since the Church hasn’t come to your conclusion, people can take or leave it.

Capitalism has lifted more out of poverty than any system in history, anecdotally speaking. Greed can find a home in an unregulated system, be it capitalism or any other.

Unless we keep people at the center of our economic goals, something that the current administration clearly does not do, any system will lead us to ruin.

But to say you think anyone who supports American style capitalism (which is heavily regulated to the point of being ineffective) will end up in Hell is nonsense, and hardly Catholic teaching. Tell us who else you think will end up in Hell…
To paraphrase Winston Churchill, Capitalism stinks, but it’s better than everything else.
 
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