I wonder if people will soon realize that that rage they have for scalpers is just directed at the amateurs and that the upper class is full of people doing pretty much the same thing just in less obvious ways.
Your employer (if you work for a private for-profit company) pays you x for your labour and then takes the proceeds of the labour and sells it for y where y is (generally) much higher than x. A business is profitable when the sum of all y is higher than the sum of all x.
If it’s a non-profit, then the difference between y and x must be put back into the business in some way, which could be an investment into an expansion of its scope or it could be a raise for some or all of the workers (payroll is not profit, it’s an expense). And that could mean just the CEO gets a raise, because some of the leeching is via different pay levels for different people that isn’t based on just the difference they are directly making to the income.
Public services can vary. If the service is profitable, then the profit goes into the budget of the government entity(s) that run it, as determined by legislature. So everyone is acting as the middleman there. If it’s not profitable, then it’s covered by taxes, at cost. There’s still varying salaries but it’s subject to government oversight, so things shouldn’t get as unbalanced as they would in the private sector, at least in theory. Though even in the public sector, there’s this assumption that promotions should come with big raises, regardless of how the workload changes, so you can still have people at the top making orders of magnitude more than people at the bottom.
I wonder if people will soon realize that that rage they have for scalpers is just directed at the amateurs and that the upper class is full of people doing pretty much the same thing just in less obvious ways.
Your employer (if you work for a private for-profit company) pays you x for your labour and then takes the proceeds of the labour and sells it for y where y is (generally) much higher than x. A business is profitable when the sum of all y is higher than the sum of all x.
If it’s a non-profit, then the difference between y and x must be put back into the business in some way, which could be an investment into an expansion of its scope or it could be a raise for some or all of the workers (payroll is not profit, it’s an expense). And that could mean just the CEO gets a raise, because some of the leeching is via different pay levels for different people that isn’t based on just the difference they are directly making to the income.
Public services can vary. If the service is profitable, then the profit goes into the budget of the government entity(s) that run it, as determined by legislature. So everyone is acting as the middleman there. If it’s not profitable, then it’s covered by taxes, at cost. There’s still varying salaries but it’s subject to government oversight, so things shouldn’t get as unbalanced as they would in the private sector, at least in theory. Though even in the public sector, there’s this assumption that promotions should come with big raises, regardless of how the workload changes, so you can still have people at the top making orders of magnitude more than people at the bottom.