- Some employee salary discrepancies are inefficiencies due to humans sucking at rationally evaluating other people
- Some employee salary discrepancies are legitimate outcomes of value produced relative to other employees
The problem is the more we create policy assuming the first one is true, we eliminate everyone in the second category (however small or large that category), making the economy less efficient. I would argue pay transparency isn't one of those policies however, and in fact would lead to more efficiencies.
That said, all interventions have consequences, and less growth and higher inefficiency from cutting tall poppies is indeed a risk. As someone in Europe, our total lack of productivity growth is leading to collapsing governments, underwater social entitlement systems and mass riots. These are serious issues that should be discussed and not dismissed outright with downvotes.
[–] blitzar 1 day ago
[–] pembrook 1 day ago
Let me guess, your next rebuttal:
> "But then we'll create more policy to try to stop the downsides of the first policy we created!"
Now you have a patchwork of 48,000 regulations all collectively harming the efficiency of the economy and creating all sorts of weird un-intended consequences and loopholes for low-trust people to game instead of rewarding honest people for doing the right thing like you intended.
[–] tancop 1 day ago
[–] brainwad 1 day ago
[–] blitzar 1 day ago
My actual response "But then we will have to deal with biases, discretion and management collecting their 10mil bonus by giving the juniors a pittance"
The flip side of course is people who actually work in bonus heavy revenue generating roles - where the impact is easy to measure - tend to leave if they are not valued and take their clients with them.
Things work a lot better in a healthy economy with competition and low friction for people to move around - exploitation blossoms when people are trapped by economic circumstances