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How Much is Too Much?

   Written by on July 17, 2015 at 12:23 pm

In the Richmond Times Dispatch, a letter writer expressed his concern that some in the business world were making way too much money.  He concluded that they should be compensated less and spread that money among others.  Many of us have concerns too about the mega income that some are paid.  I will return to that point later.  First, let me point out some errors in the letter writer’s thought process.

ruff-frankFirst, he expressed concern about what business leaders are paid, completely ignoring the equally grotesque income of some in Hollywood and on the playing fields and arenas.  This is a glaring offense to many that a ball player is worth anywhere near the income of a business leader who is creating jobs and wealth for stockholders.  I suggest the writer consider this if he is truly concerned about the issue of fairness.

Second, the letter writer fails to understand how people spend the money they are paid.  Sometimes that money goes to charities, other times it is spent on goods that provide job opportunities to others.

As an example, twenty years ago the federal government decided to tax luxury items such as big boats and personal airplanes.  During that time, I would pass the Hatteras Boat Company in High Point, North Carolina each week.   Every week, prior to the new tax, the parking lot would be filled with employees’ cars and new boats ready to be shipped.  After the tax, the parking lot had fewer and fewer vehicles.  In a matter of months, the lot was empty and the building had a “for sale” sign out front.

Third, let’s explore the writer’s position of what is the right pay someone is receiving.  How would anyone determine what is the right pay for a particular job?  He might reach a different conclusion than you or the next guy.  Who would be right?  Would we, therefore, turn to the government to set the right salary for everyone?

Is that a policy that would invigorate our economy, or would it continue to drive down our economy as so many other Washington policies have done?  If an individual created a new product, would they be wiser to produce and promote their product requiring them to hire more people and risk the government determining their proper income?  Or would they be wiser keep their business small and set their own level of profit?

The letter writer does not seem to understand that much of the income of top earners is based on the performance of the preceding year.  If the company has done well and the stock has increased in value, should they not reward those who have improved the fortunes of the company?

In the build up to next year’s presidential election, I’m sure that we will see and hear more on this issue and others that seek to divide us as a people.  Some people do not understand that this nation was built on the concept that one should reap the benefits of his work.

These issues will create the dividing line between the candidates for presidency next year.  The question you will need to ask yourself is this:  Can the government better determine the value of work for everyone better than the market place?

We love to hear from you!  You can contact us at Sen.Ruff@verizon.net, Post Office Box 332, Clarksville, VA  23927 or 434-374-5129.

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