Lest you think I was being facetious in my last response, I wasn't really. I have worked closely with a lot of small businessmen and "economics" is not what drives many of their decisions. As often as not they buy some new business asset to impress their friends. I think Veblen called it Conspicuous Consumption. (Yes I know the Mencken response.)
Wages are often NOT set by productivity. That is why boss's kids get higher paychecks. It is a throwback to the aristocracy. If this kid comes from me, and I am this super duper business owner, then obviously my offspring has inherited those superior genetic characteristics. There, Mini-Me, should make a higher paycheck than Bob, the veteran employee...
I do not know how old you are or how much interaction you have had with small business owners. I am 47 and been kicking around that world for a number of years. All I ask is that you keep an open mind and when you are trying to figure out how some of your clients get into the messes they get into, think of my theories. parsy.
Greetings Parsifal. I am a partner in a business and I DO try to find the best employee. However. I NEED skilled employees so they get paid what they are worth. I make a profit and when I do, they earn less then me. Now, they make MORE then me on a salary basis. You are thinking of big groups like little groups. If I bring my business up from 10 employees to 1500 employees, that does not change me. You would never speak this way about small business men. Yet when it is a BIG GROUP, you feel free to criticize. If I ever grow my PRIVATE business into a HUGE conglomerate, you can bet that I would take care of my workers... it is ILLOGICAL not to. One thing I can tell you is that I am in COMPLETE CONTROL of my private business. The reason I will stay small business is I cant stand the way the Government dicates how I should run my OWN business. 60% of employees work for small business and your union bullying is DYING. Good riddance. You have NO RIGHT to control my entreprenuerial pursuits. I am a citizen and as such should be PRAISED for creating wealth. All the Teamsters create is WASTE, and you wonder why American Workers lose out... AMAZING!