Tuesday, September 2, 2008

They Deserve Every Penny

By Joseph Kellard

Fellow Objectivist Sylvia Bokor and I had letters published in the Boston Globe in response to another letter-writer who challenged Ayn Rand fans to justify CEO pay. Here's the relevant part of his letter:

"The average chief executive makes 344 times as much as the average worker in major US corporations … I challenge any 'free'-market apologists, clutching their Ayn Rand and Milton Friedman books, to come up with a reasonable explanation for this execrable distribution of wealth."


Here's how our letters appeared:

They deserve every penny

September 2, 2008

RE BRYAN Tucker's challenge to Ayn Rand fans ("Too little outrage over pay inequity," Letters, Aug. 28): There's no need to apologize for free markets. But because of considerable miseducation, there is a need to explain them. Tucker's use of the phrase "execrable distribution of wealth" indicates his mistaken Marxist-Keynesian views. Properly, wealth should not be "distributed." It should be earned. Chief executives do that. They earn a lot of money because they have a great deal more responsibility than other employees do. Most important, they create jobs, expand production, and thereby raise the standard of living.

Politicians' promises to "create" jobs are self-aggrandizement. Politicians don't create jobs. CEOs do. That's why they're highly paid.

SYLVIA BOKOR, Albuquerque

CEOS MAKE much more money than the "average" worker because they are exceptional. In short, they are the brains behind a corporation, that is, the Atlases on whose shoulders the entire operation of the corporation fundamentally depends.



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