> The remuneration that labor and employees receive is never going to be in line with the value that they generate, precisely because the former group doesn't take any risk. They don't invest any personal capital and they aren't liable for anything. They can walk away any time, sometimes voluntarily, sometimes not. In return, they work fixed hours and get paid on a routine basis. The owners receive only what remains above and beyond all that, which could be great profits, just breaking even, or even losses.
The people at the top get an even better deal. They get given stock options, so they get the upside but not the downside. They can also walk away, but they'll get a big payout if they walk away involuntarily. They work fewer hours whether you're counting butt-in-seat time or making-efforts-about-work time (some people, bizarrely, compare the CEO's making-efforts-about-work time to the employees' butt-in-seat time and conclude that the CEO "works more").
> And in some situations, the "employers" do in fact lose a lot of money, while the "employees" walk away; the limited partners of Melvin Capital, for example, lost many billions of dollars, all while Melvin Capital itself continued to charge the 2% management fee.
You're flipping the categories. Being the "investor" can be a bad position, sure. Being the manager, the decision-maker, is where you can't lose. Concluding that that somehow makes employees better off than owners is ass-backwards.
The people at the top get an even better deal. They get given stock options, so they get the upside but not the downside. They can also walk away, but they'll get a big payout if they walk away involuntarily. They work fewer hours whether you're counting butt-in-seat time or making-efforts-about-work time (some people, bizarrely, compare the CEO's making-efforts-about-work time to the employees' butt-in-seat time and conclude that the CEO "works more").
> And in some situations, the "employers" do in fact lose a lot of money, while the "employees" walk away; the limited partners of Melvin Capital, for example, lost many billions of dollars, all while Melvin Capital itself continued to charge the 2% management fee.
You're flipping the categories. Being the "investor" can be a bad position, sure. Being the manager, the decision-maker, is where you can't lose. Concluding that that somehow makes employees better off than owners is ass-backwards.