Eric Phelan, Talking Capitalism Collective member, is a 2018 Central CT State University graduate
When I first came to college at Central Connecticut State University I don’t think I could have told you much about different economic systems used around the world. Today, with a B.A. in economics I have a better understanding.
The system I find most appealing is capitalism, where there is private ownership and marketplace exchange. In this marketplace the consumer has numerous options to choose from, due to competition between private businesses. The competitive market gives the consumer the power to decide where they take their money and which producer they want to buy from. Competition keeps prices low and forces producers to create and put out the best possible product; if not the competitive market will force them out of business.
Sadly, it seems to me that capitalism is increasingly misunderstood. More and more people are angry about CEO’s salaries and the minimum wage not being a “livable wage”. I believe CEO’s should be paid top dollar and that raising the minimum wage is a big mistake.
Think about a CEO, Disney’s Bob Iger for example. He’s paid a salary (not including stock options) of $44.9 million. Now, Disney, in addition to Disney World and Disneyland parks, also owns, Disney Shanghai, Disneyland Paris, ESPN, ABC, Lucas Films, Pixar, and Marvel Studios and Entertainment just to name a few. Bob Iger is responsible for millions of workers as well as, a multi-billion-dollar company; one mistake or one wrong comment could cost his company and Disney shareholders millions Disney workers could lose their jobs. I believe Bob Iger deserves every penny he’s paid.