Comments on: God will guide fair pay

By: Homer Paxton

Homer Paxton — Mon, 28 Nov 2005 00:52:05 +0000

Let me add one more thing.
We were living in a unit. when we moved to our present house a lot of things went out.

My former laptop was ‘destroyed’ one time where I lost everything on it.
As it is I am a paper person and I like to keep my original sources where I can.

By: Bec

Bec — Mon, 28 Nov 2005 00:37:51 +0000

Ummm…do you not have a computer, Homer?

In my research and as a lawyer I often make assertions which are far from controversial, yet I am expected to back them up.

By: Homer Paxton

Homer Paxton — Mon, 28 Nov 2005 00:34:34 +0000

Sorry Bec but my wife insists on cleaning up the house so everything goes out after a certain time.

I might add that in labour economics the ‘assertions’ are not controversial and are generally accepted.

I like doing it that way anyway.

By: Bec

Bec — Sun, 27 Nov 2005 23:55:40 +0000

well homer, if it is true that you don’t have any access to prior research or references, I would say that makes you a very bad researcher for the following reasons:
- it means you have to do research over and over again because you don’t have records of your prior research
- it means you can’t back up your assertions
- it means others can’t trace your steps to reaching your assertions

most researchers keep final copies of their work and some form of bibliographic database. I find it very, very difficult to believe that you don’t have anything to back up the claims you are making on this blog.

By: Homer Paxton

Homer Paxton — Sun, 27 Nov 2005 23:13:54 +0000

two points.

given what Jack Welch did gor GE he deserved every cent.
there is nothing wrong in moving to countries whose labour is better suited for that process.
This reduces the costs of production enables the godd or service to remain at a low or lower price and thus increases the general standard of living.

I think you will find most jobs are not in manufacturing but is sales and service both of which can’t be shifted to another country and both of which need high skills.

By: kevin

kevin — Sun, 27 Nov 2005 22:25:53 +0000

Dan - It sure seems like a good idea if it works. I think Jack Welch, former CEO of GE earned over 200 million dollars in his last year at GE - as he moved the manufacturing processes to Mexico to exploit the labor market there.

By: dan

dan — Sun, 27 Nov 2005 22:06:13 +0000

Kevin, to answer your question re directors’ bonuses - a couple of years ago after a high profile company collapse where the directors had been paid substantial bonuses, parliament introduced legislation to address this. Where a company subsequently goes into liquidation (bankruptcy), payments to a director may be recovered by a liquidator as “unreasonable director related benefits”.

However, to my knowledge no cases have been determined by the courts on the question.

By: Homer Paxton

Homer Paxton — Sun, 27 Nov 2005 21:30:48 +0000

which is why the 5 economists proposals for keeping the minimum wage steady whilst introducing family tax credits is such a great proposal but also costly.
you keep incomes steady have mimimum wages fall over time therefore increasing employment.

By: Homer Paxton

Homer Paxton — Sun, 27 Nov 2005 04:44:36 +0000

I hate options.
They either have no hurdle rates or they are so smal to be pathetic.
They are not expensed so they don’t ccome off the profit and loss account.
Only the ‘elite’ of a company get them.

I always vote against them in any company I have shares in.

By: kevin

kevin — Sun, 27 Nov 2005 03:10:18 +0000

I was reading an article about Delphi Mfg - a bankrupt parts maker owned by general motors and came across this article about executive bonuses, saying:

“Delphi’s Chairman Steve Miller recently proposed $90 million in cash bonuses, while seeking a 60 percent pay cut for workers, renewing interest in a debate that has simmered for years.
For more than a decade, compensation for chief executives who run major U.S. companies has soared more than 400 percent, thanks to the proliferation of stock options, while average household income has risen 12 percent since 1992.”
from: http://www.indystar.com/apps/pbcs.dll/article?AID=/20051126/BUSINESS/511260365
Does Australia have laws that prevent execs of bankrupt companies from taking huge sums of compensation while asking workers to make severe wage cuts?