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Conventional wisdom has it that the primary function of the stock market is to raise cash for companies for the purpose of investing in productive capabilities. The conventional wisdom is wrong.
This note comments on Eric Weinstein’s, “How and Why Government, Universities, and Industries Create Domestic Labor Shortages of Scientists and High-Tech Workers,” posted recently on INET’s website.
How the U.S. New Economy Business Model Has Devalued Science and Engineering PhDs
In this comment, we explain our objections to the SEC’s current formulation of the Pay Ratio Disclosure Rule on each of three grounds: the erroneous estimation of CEO pay; the unclear specification of the “median” worker; and the risk of normalizing a pay ratio that is far too high. Then we present the latest data on the remuneration of the 500 highest-paid CEOs in the United States, demonstrating the way in which the SEC’s measure of CEO pay that enters into the CEO-to-median-worker pay ratio tends to systematically underestimate actual executive pay.
Featuring this expert
Sen. Tammy Baldwin features arguments in questions to SEC nominees, pharmaceutical industry witness
INET gathered hundreds of new economic thinkers in Edinburgh to discuss the past, present, and future of the economics profession.
Once again, an out-of-control industry is threatening public health on a mammoth scale
The Idea That Businesses Exist Solely to Enrich Shareholders Is Harmful Nonsense