The UK is gripped by strikes right now, but they are not the only ones. All over the world public and private sector workers are taking action as their salaries fail to keep up with inflation. Central banks are urging caution, fearing a wage spiral could push prices higher. This week Phil Dobbie and Steve Keen discuss the theory behind wage setting – a principle that someone sees chief executives earning a ridiculous multiple of the take-home pay of their workers. So, how are wages arrived at? One theory suggests it is the contribution they make to the profitability of a company, but Steve says its more to do with entrenched hierarchy.
Related Articles

Economics
Tax Justice Network – Taxcast October 2018
October 25, 2018
Mathew D. Rose
Economics, EU politics, Finance, Financial Institutions, Globalisation, National Politics
0
In the October 2018 Taxcast: we speak to Nicholas Shaxson about his new book “The Finance Curse: How Global Finance Is Making Us All Poorer” released alongside new research from the Sheffield Political Economy Research […]

Economics
Renegade Inc – David Graeber: Bats**t Construction
Over millennia – and certainly since ‘Field of Dreams’ – the idea that if you “build it, they will come…” has prevailed. After Kevin Costner’s massive success, it seems that politicians have been taking his […]

Economics
Ann Pettifor – Can Society Once Again Make Finance Servant, Not Master of the Economy?
In February 2018, Jeremy Corbyn accused bankers of taking the economy hostage, and said in a speech that Britain’s financial sector will be “the servant of industry not the masters of all” if the Labour […]
Be the first to comment