Why Only 1% of the World’s People Should Have All the 99% World’s Wealth (Blatant Economic, Social and Human Rights Related Injustice)?

All People Together Create Wealth for the Organizations (and Nations) and They Should be Given a Just and Proportionate Share of the Created Wealth. 

Why only 1% of the world’s people should have 99% of all the wealth as if all others are idling & twiddling their thumbs?

Vilfredo Pareto was a 19th century economist who observed in 1906 that 80% of Italy’s land and wealth was owned by 20% of the population (refer http://shyam.bhatawdekar.net/index.php/2011/07/20/abc-analysis-or-pareto-analysis/ or http://abc-pareto-analysis.blogspot.com/).

Over past 100 years, the situation has worsened. It may not be an exaggeration to say (figuratively) that presently just about only 1% of the people have grabbed around all of 99% of the world’s wealth. And definitely not necessarily by ethical practices or by honest hard work.

Utter economic inequality and blatant social injustice, isn’t it? Yes, it is.

In every organization (whatsoever nature of organization it may be), many people work. Together they create wealth for that organization (and nation). But the distribution of that wealth is quite lopsided. The lion’s share is grabbed (by hook or crook) by extremely small number of people who are at the helm of that organization (including the nation). They do it by drawing disproportionately and extraordinarily high salaries, perquisites and profit-share. Obscenely and vulgarly high indeed (at times 1000 times or 10,000 times or so more than the lowly paid other people of the same organization)! The balance minuscule amount of wealth is thrown at the rest of the people (as if obliging them, as if they are slaves or beggars).

Does it mean that those few people at the top single-handedly contribute 1000 times or 10,000 more towards creation of wealth of that organization? Remove the rest of the people and see if these few people (at the top) can create the same wealth that the organization (and nation) is currently creating. It’s inconceivable and practically impossible. You need other people (other than those top few) to create wealth.

It only goes to show that other people too contribute hell of a lot in creating the wealth for that organization. Their contribution is as significant as the contribution of the top few. 

Then it does not make sense in having such a big yawning gap between the emoluments of the CEOs and few other people of these organizations and the rest of the people of the same organizations.

Therefore, the highest emolument paid to any person in an organization should not be more than say, ten times  (or whatever figure rationally calculated) that of the lowest emolument in any organization. That’s all.

Just because an organization is providing the employment does not mean that the top few of that organization can get away by exploiting hundreds and thousands of people who give their brain, mind, talents, skills and sweat to these organizations.

Some serious thinking and movement are necessary to kill this kind of day-light exploitation of people.

Share

About Shyam Bhatawdekar

35 years’ industrial/business experience as a top executive & 35 years’ parallel academic/consultancy experience in general management, behavioral sciences & technology. Areas: general management, production, human resources, industrial engineering, systems, MIS, computers, corporate planning, audit, sales/marketing. Penchant for information technology & behavioral sciences; integrated with conventional technology makes him unique thought leader. Conversant with academic theories & realities of business, fuses the two into practical approaches. Was associated with Tata Motors, Hindustan Motors, Hindustan Aeronautics & ThyssenKrupp; held top positions as highflier executive. Presently Chairman & Managing Director, Prodcons Group associating with 250 organizations; providing management & I T consultations & conducting seminars/workshops. Been a faculty for IIM’s, TMTC, Railway & HAL Staff Colleges, Symbiosis. Speaker with 35000 hours’ experience benefitting more than 100,000 people. Published 35 articles in Economic Times, Indian Management & Computers Today. Authored 27 books. Invited as key speaker in seminars by AIMA, HRD Network, NIPM, QCFI, CSI, NPC. Widely traveled. Education: Engineering & Management.
This entry was posted in Boundaryless Management, Change Management, Communication and Negotiation, Cost Management, Creativity, Economics, Ethical Management, Finance Management, General Management, Global Management, Human Resource Management, Human Rights, Innovation Management, Leadership, Life Management, Money Management, Principles of Management, Strategy Management and tagged , , , , , , , , , , . Bookmark the permalink.

2 Responses to Why Only 1% of the World’s People Should Have All the 99% World’s Wealth (Blatant Economic, Social and Human Rights Related Injustice)?

  1. Yuri Ferreira says:

    The most part humans cannot become strong. People do not have the same mentality to receive the same recompense. Second, you and me cannot live outside a society, and they are naturally pyramidal. After this, it is impossible to equilibrate luck. So are utopia these post-modern morality about egalitarianism.

  2. Yuri Ferreira says:

    I disagree at this point, but I like your posts.

Leave a Reply

Your email address will not be published. Required fields are marked *