It doesn’t even work in very liberal Seattle

dan price

Did you hear about THIS?   I think a lot of people love the idea of a 100% pay increase based on their boss’ desire to ‘more fairly distribute’ the wealth and make sure they all have really good livings…who doesn’t want everybody on the planet to have a good living?
But it doesn’t WORK…….The story in my linked article isn’t even profit sharing, which does work.   This was just upping the pay…….to the point that the CEO had to rent out his house and live somewhere cheaper to afford it.   In the linked article, they imply he did this for the publicity, but if you hear him, you might be inclined to believe his good intentions.

BUT….here’s a little bit from the linked article:  “Price’s decision ended up costing him a few customers and two of his “most valued” employees, who quit after newer employees ended up with bigger salary hikes than older ones.

“He gave raises to people who have the least skills and are the least equipped to do the job, and the ones who were taking on the most didn’t get much of a bump,” Gravity financial manager Maisey McMaster, 26, told the paper.”

What do you think?
Z

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18 Responses to It doesn’t even work in very liberal Seattle

  1. Welcome to the real world, Price.
    Didn’t quite think that through.
    When you give everyone a raise except those who did all the work, you have threatened their self esteem.
    Isn’t that a federal crime now?

  2. fredd says:

    His hare brained pay scheme was destined to fail from the very beginning, because of human nature. The part of human nature that always dooms share-the-wealth plans is what did in this numb nut Utopian and his socialist foolishness: free riders.

    Free loaders goof up all of these dreamy, feel-good ideas. The moochers, once given the keys to the pantry, wind up sleeping sideways in the trough. There’s always more free riders in every social system than hard workers, it’s human nature. And there is no amount of shame or chastising of these bums that will increase their output: they will scam the system to take the most for the least amount of effort, happens every time, always has, always will.

    And you see what that human trait is doing to America: it is wrecking our country, and is attracting every moocher from everywhere to climb on the gravy train.

    This Seattle guy should have contacted me before he tried this. I could have set him straight.

  3. silverfiddle says:

    I read that article, and what I found most amusing was that the critics, apparently without realizing it, were expressing basic iron laws of economics and human nature. It’s why every communist or socialist system collapses. Why break my back when the lazy bums earn just as much as I do?

  4. John M. Berger says:

    In viewing the video the only thing that I understand is, Price: “I’m not an economist”. Question: “120 employees at his Gravity Payments credit card processing firm”; how did he get that far to begin with? Question (2): Given the likely hood that this plan won’t work and he has to scale back to some realistic remuneration, for survival; what impact would that have on morale and consequently on continuing operations ? Question (3): In attempting to implement this (let’s say ambitious) plan; why didn’t he, at least, do it on an incremental basis?

  5. Those employees that quit were a mini Atlas Shrugged.

  6. Reminds me a bit of grade inflation. Those whose grades are inflated slack off, and those who are actually doing the work typically stop doing the work because of lack of incentive.

  7. Ed,
    Yes! Good turn of phrase there.

  8. bocopro says:

    Can you say “Schadenfreude”? I thot you could.

  9. Silverlady says:

    Welcome to the world of reality & hard knocks, & smell the over-priced Starbucks. Just because something feel-good is handed down by Socialist-dictator politicians doesn’t make it feasible in reality. Also, assuming he’s the guy in the photo, if he had his hair cut, washed it, & shaved I might take him more seriously, just might. Sorry if that sounds judgmental, but I’m old school. Appearance is a sign of being adult & professional in my book.

  10. Kid says:

    Same as everyone said – when people can have a good life without putting effort in they don’t. Also explains politicians.

  11. geeez2014 says:

    Ed….good point about esteem and criminality! And Atlas Shrugged…

    fredd….agreed

    Silverfiddle….Oh, the IRONY! All the little socialists are spouting all the lines they say they’re against because NOW it affected THEM!……you’re so right. AND they don’t see it….or maybe we can hope they are? naaa

    AOW….yes, very much like that…true.

    bocopro…ja, und ohne akzent auf Deutsche! 😉

    Silverlady….he runs a young hip company with young hip clients, probably, and he’s actually quite good looking…..but I understand your point.

    Kid…yes on POLITICIANS!

  12. Kid says:

    Silverlady, Agree on the appearance concept. In fast I saw an article recently titled “Please stop dressing like crap”. I agreed with that too. It’s part of the demoralization process. I look around, all these guys in cargo shorts, stupid t-shirt, baseball cap straight, sideways, or backwards. Makes me feel like I’m in some 3rd world country. I’d hate to be a young lady today.

  13. cube says:

    Price should’ve read Ayn Rand.

  14. John M. Berger says:

    How about: SENSLESS IN SEATTLE?
    See my previous comment.

  15. Baysider says:

    Perfect analogy AOW. And PERFECTLY PREDICTABLE. He doesn’t even need to read a Sowell book or Walter Williams column. Just a 5-minute Prager University video would do. Like this one: http://www.prageruniversity.com/Economics/The-Progressive-Income-Tax-A-Tale-of-Three-Brothers.html#.VcJuVp1Viko

  16. JMB: I like that. 🙂

  17. Mal Telloian says:

    Lets see how long this lasts. If the business starts going downhill, which is very possible in any business, lets see how much support he gets back from all his employees!

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