It’s safe to say that the United States was not a communist nation in 1978. It’s also safe to say that CEOs haven’t soared to new heights of productivity and value in the market place in comparison to the average worker since then. Something else must explain this astonishing figure:
From 1978 to 2011, CEO compensation increased more than 725 percent.
According to the Economic Policy institute, this increase was “substantially greater than stock market growth and the painfully slow 5.7 percent growth in worker compensation over the same period.”
Today’s wealth inequality has reached heights surpassing the Gilded Age. The top 1 percent have some 42.7 percent of the financial wealth; the next nine percent with 40.2 percent; the next 10% with 10.1 percent, and the remaining 80 percent of the population with just 7% of the financial wealth according to a report published by Edward N. Wolff of the Levy Institute (see page 44).