One approach would be to introduce a cap on wage ratios: a ‘maximum wage’ policy. Sam Pizzigati, an associate fellow at the Institute for Policy Studies, argues that we should cap the after-tax wage ratio at 10 to 1.38 CEOs would immediately seek to raise wages as high as they can reasonably go. It’s an elegant solution, and it’s not unheard of. Mondragon, a huge workers’ co-operative in Spain, has rules stating that executive salaries cannot be more than six times higher than the lowest-paid employee in the same enterprise. Better yet, we could do it on a national scale, by saying that
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