A CEO just made the minimum wage at his company $70,000 per year!

Image source: New York Times

h/t to a student of mine, John, who sent me this.

This young Seattle entrepreneur/CEO just raised the minimum salary at his firm to $70,000 per year. It applies to everyone--even the lowest paid workers; secretaries, clerks, etc.

He's doing it by cutting his own, $1 million per year salary to $70k and taking the bulk of the firm's profits and using it to pay the wages.

“The market rate for me as a C.E.O. compared to a regular person is ridiculous, it’s absurd,” said Mr. Price, who said his main extravagances were snowboarding and picking up the bar bill. He drives a 12-year-old Audi, which he received in a barter for service from the local dealer.

“As much as I’m a capitalist, there is nothing in the market that is making me do it,” he said, referring to paying wages that make it possible for his employees to go after the American dream, buy a house and pay for their children’s education.

Check the story out here.

It's a wonderful gesture, but I doubt it will catch on. It's really charity.

A better way to attack income and wealth inequality would be to have the government vastly increase social spending--on schools, health care, education, etc. That could all be made free. Plus, eliminate the payroll tax and other taxes on working and earning.

Finally, raise taxes dramatically on economic rent seeking and financial speculation.

The guy should get a medal, but he won't and he'll be laughed at by other CEO's. That's why it has to be imposed another way.