Why am I making 10x or more in wages then someone that is just as moral as myself?

Question

Why are companies giving out money so freely now a days. 30 years ago If a doctor was making 100% more then a scientist or garbageman that was amazing, now it is 100 fold or more in places. I've asked HR to cut my pay in 1/2 or more and they insisted they can't do that it would look bad. So, 1/2 of my pay just goes into my IRA buying up more oil futures to rape this country and others people. What a waste. Yes, I try to put 20% of my money to good use by clothing, and food for those in need and try to donate a few hours of my time each week, but the money keeps coming... I'm so sick of this. What the heck is wrong with this country, can't you sickos just make it off of a living wage.

Answer 1

It's called a market economy.  And, BTW, money is just a nominal variable.  Giving more money to the poor would not help the poor.  It's like giving children who played baseball a corked bat.  Sure, more home runs would be it.  But, they are no better than before.  Also, giving money to the poor increases aggregate demand (because the poor would not save money) this would lead to higher prices and thus render this money you gave them to be worth less than if you would have kept it.

Answer 2

First of all, while income inequality in the United States has been increasing for the past few decades,

http://en.wikipedia.org/wiki/Income_ineq...

(and though I agree that it is indeed too high) it is by no means at an all time high

http://en.wikipedia.org/wiki/Image:Share...

And you'll get very little agreement on what the ideal value should be.

Why this increase? It is clearly a matter of government policy.

Most of it is attributable to Republican administrations. Many would argue that it is just the free market at work, and the Republicans claim that letting the market go unregulated is best for the country, no matter what it does to most of the individuals in it, and the free market tends to make the rich richer and the poor poorer.

(This isn't to say that governments can't go too far the other way because history suggests that on occasion they have. And, of course, it doesn't help that even the "free-market" Republicans have kept increasing subsidies to their rich friends.)

As for what to do with your money, all the evidence seems to agree that kids who have a supportive environment early on do better later in life. (Though there is some discussion on just how much better, how much later, and just how much support is needed to make a difference.)

So one thing you can do with your money, and expect to see some return, is to invest (donate) to organizations that provide day care facilities, after-school programs, summer camps, etc. for kids who otherwise wouldn't have them, or provide scholarships to attend such for kids who otherwise couldn't.

But the real need is not for individual contributions of money, but of help in changing the perceptions of the culture. Income inequality has climbed in the U.S. because there is no general opposition to it.

If I had a better answer, I'd pass it on, but I don't.

Still, I can highly recommend Tim Harford's latest, "The Logic of Life - the Rational Economics of an Irrational World". It should help you in your thinking about real-world matters such as this.