AUT Faculty of Health and Environmental Sciences
10 Mar 2019 177 Respondents
By Amanda Lees
VX Community
Mega Mind (40928 XP)
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PPE WEEK 3 SNAPSHOT: GROSS INCOME? (Part of assessment 1 Q3)

PPE WEEK 3 SNAPSHOT: GROSS INCOME? (Part of assessment 1 Q3)

Here is our first Vx Snapshot for the semester. We will have one each week for Weeks 3, 4 & 5. Your responses to them will help inform your audio response to Q3 in the first assignment. 

They are not graded (and there are no right and wrong answers!) so please do not worry too much about these- just write down your true feelings about each week's snapshot topic - and don't write too much - 50-100 words is fine. And you do not need to reference at his point.

Guidance for finding/copying/pasting your responses into your templat can be found in Bb in the Vx guidance section.

Any questions just get in touch.


Okay- here's some background:

Over the past few decades, income inequality in NZ and other countries has grown significantly.

In some cases the top percentage of workers earn more in a week than those at the bottom earn in an entire year.

Historically this gap was often explained by high unemployment rates but today many in the lowest income brackets do have jobs- but they are just very poorly paid.

In many instances there isn't always a clear correlation between skill, contribution to society and renumeration.

While it may be easy to argue why the person who collects your rubbish should not be paid as much as a brain surgeon, there are also convincing arguments to say their pay rates should be slightly closer than they are.  

Many countries have adopted a minimum wage. In NZ this will rise to $17.70/hr from 1 April, but should there also be a maximum wage?

Last year the UK Guardian reported that 'Researchers at the Stanford Business School two years ago asked Americans to estimate the “maximum amount” a CEO should make at a company where average workers were making $50,000 a year. The answers averaged $882,054, about 18 times average worker pay.

How much do CEOs actually make? In 2017, the McDonald’s CEO, Stephen Easterbrook, took home $21.8m. That’s 3,101 times more than the typical McDonald’s employee worldwide. The typical McDonald’s worker would have to labor more than three millennia to make as much as the McDonald’s CEO made last year.

McDonald’s is an outlier, but even more average figures are astounding. At most major corporations, typical workers still have to labor over three centuries to make as much as their CEO makes in a year.' (Read more here https://www.theguardian.com/commentisfree/2018/jun/30/minimum-wage-maximum-wage-income-inequality)

Here in NZ, yesterday's headlines included news that Fonterra's new CEO's base salary will be $1.95million. See here; https://www.tvnz.co.nz/one-news/new-zealand/miles-hurrell-gets-permanent-fonterra-role-1-95m-base-salary?variant=tb_v_3 

The argument for high CEO salaries relates to having to pay big in order to attract the right candidates who will impact the company’s performance and that a good CEO will become inextricably linked to a company's success. Much of the successes of big compny names in NZ will be linked to the CEO's role- think Fonterra, Air NZ, etc

What do you think?

Does the dream of big salaries inspire people to persevere and succeed? Would capping money earned limit people's ability to reach their potential? Or is their a limit to what people need to be able to earn, especially if others in society earn so little?

Image source: http://tinyurl.com/y2gwb3nq 

It is proposed that in our country, as well as a minimum wage there should also be a maximum amount that can be earned through employment.