A parity system needs to be enforced on corporations, in various fields, to keep playing fields level, so one company cannot achieve virtual or even partial monopoly on segments of the economy, and the average American worker will achieve living wages.
In sports, parity is when participating teams have roughly equivalent levels of talent. In such a league, the "best" team is not significantly better than the "worst" team. This leads to more competitive contests where the winner cannot be easily predicted in advance. The opposite condition, which could be considered "disparity" between teams, is a condition where the elite teams are so much more talented that the lesser teams are hopelessly outmatched. Wiki
Parity is universally praised by fans.
The United States needs to treat corporations like professional sports teams. Just like sports teams have to conform to salary cap limits to achieve parity or fair play, corporations should conform to a CEO-to-Worker Pay Gap limit that facilitates fair play.
In 1980, CEO pay equaled 42 times the average blue-collar workers' pay.
In 2011, CEO pay equaled 380 times workers' average pay--by far the widest gap in the world.
High CEO-to-worker pay ratios can reduce the performance of companies. Academic research has found that steep pay disparities hurt employee morale and productivity. Extreme disparities between CEO and employee pay also have been shown to result in a significant deterioration in the quality of products produced. http://www.aflcio.org
A CEO-to-worker cap that is equal to the 1980 level needs to be set (no more than 42 times average blue-collar workers' pay). The economy worked for the people back then, not just the rich.
Using the model of Major League Baseball, any amount a CEO receives over the 42X ratio, needs to be subject to a Luxury Tax, a tax on the amount by which CEOs exceed the threshold. That "excess" tax needs to be distributed equally among workers, based on their skill level, participation, etc.
A tax rate should be established by statisticians that will most positively impact the American worker and make corporations fairly and competitively viable, and break up the current monopolistic system controlled by the one percent.
For example, the New York Yankees paid $13.8 million in luxury tax in 2011, the Red Sox $3.4 million.
In the 2009-10 NBA, the Knicks paid $14.65 million luxury tax for exceeding the total team cap of $69.92 million, the Mavericks paid $17.79, the Lakers $21.42.
The money is divided among the teams that play or is used by the league for mutual benefit. Different major governing organizations attempt to achieve parity in different ways. For example, the NFL in America has established the shared revenue plan, in which all teams equally benefit from television revenue and sales of NFL franchised goods.
Salary cap limits set a maximum amount of money that may be spent on athletes' contracts. These limits exist to different extents in several other leagues as well. For example, Major League Baseball in America does not have a cap, but charges a luxury tax beyond a certain level (which is divided among the other teams), Wiki
Corporations using this system can still succeed and be very profitable.
Think of the infrastructure of the United States (roads, waterways, utilities, subsidies) as a big sports stadium, that corporations use, but is paid for by the people. Veterans pay in blood. It is time Corporations conform to parity.
If it is good enough for NASCAR, which limits the number of teams for a single owner to two, it is good enough for American Corporations.
Some corporations will balk. But the commissioner says--"Let's play ball!" It is as American as a hot dog and mustard
Conceived on west coast,born on east coast,returned to northwest spawning grounds. Never far from water. Degree in biology, minor: socio/psychology. Nature-oriented. Building trades,marine carpentry, Veteran, ex-social worker, ex-tavern owner. (more...)
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