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Salary disparities
You have been invited some neighbors over for dinner
including couples from Japan
, working here on a temporary assignment. As the
conversation turns to the differences in working style, you recall the
following: ” In the United States, key executives make the important
decisions. Although Japanese leaders also take responsibilities for their
organization’s performance, they involve workers in ‘quality circles’ to
discuss decisions that affect them. A closer relationship is also encouraged by
Japan’s lower salary difference between executives and workers: about 10
percent of the difference that is typical in the U.S. ”.

QUESTIONS:

1. Can the large differential between workers’ and
executives’ salaries in the U.S. be justified especially when compared to
significantly smaller differentials in other countries?

2. Could the disparity eventually lead to the class conflict
that Karl Marx and Max Weber predicted would eventually occur in capitalist
society?

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