Global Economy: Parity

Knowledge workers of every rank and category as well as unskilled workers in every organization deserve far more emoluments than what are doled out currently (and this has been the dismal story over the past many centuries). They add tremendous value- they form the critical resource. The founders, CEOs and investors alone cannot run any organization by themselves. Remove all the workers and see what happens!! So the workers’ knowledge and skills are as important as the money and management provided by the founders, CEOs and investors. Therefore, there has to be a significant parity in payments and sharing the profits.

Related Reading

Why only 1% of the people should have 99% of world’s wealth?: http://shyam.bhatawdekar.net/index.php/2015/12/17/why-should-only-1-of-the-worlds-people-should-have-all-the-99-worlds-wealth-blatant-social-injustice/

Screwed up Global Economy: http://shyam.bhatawdekar.net/index.php/2012/06/27/screwed-up-global-economy/

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Why Should the Members of Parliament of Any Country be Paid if They Don’t Work?

“No Work, No Pay” is Followed in Every Organization for Everyone and Members of Parliament Can’t Get Scot Free if They Don’t Work

Members of Parliament (MPs) can’t be exception to the rule “no work, no pay”.

The case in point is the recent happenings in Indian parliament. Similar happenings took place even in the earlier washed out sessions over past several years.  It must be happening in other parts of the world too some time or other.

In India, almost all of its parliament’s sessions were wasted with no work done in the recent past. Why should MPs get their salaries and allowances for the days parliament did not conduct its business due to continued disruption? The parliament was totally paralysed for a number of  successive days over the issues that were the creation of the MPs of the ruling party as well as the parties in opposition.

The two houses (Lok Sabha and Rajya Sabha) lost unimaginably large number of hours of work. They hardly worked at all. A huge sum of Rupees 3 to 4 crores is spent on both the houses everyday. So you can calculate the crores and crores of public money that is lost due to non-working of the MPs.

A simple worker in a factory or office does not get his salary if he does not work. Then why should the highly paid MPs at such important and responsible position be paid if they do not work?

Any sane person of a little logic will say, “Not only daily allowance but the entire salary and perquisites of such MPs should also be deducted for the days they do not work and contribute.”

Such actions alone will compel the MPs to behave and work. Such an action will certainly send a strong message across. Some wiser people will even suggest that the non-working MPs should in fact be penalized heavily for wasting public money.

However some people may argue with tongue in cheek, “Whether you pay them or don’t pay them does not matter much to them since they earn more than that from some other (?) sources. They do not solely depend on their salaries, perquisites and allowances.”

But seriously, the MPs should be paid only based on their true contribution to the society. We talk of result orientation everywhere. Start with the MPs to set an example to the rest of the citizens of the country.

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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.

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