Tag Archives: Capital In The Twentieth Century

Feb. 9, 2015 The New Yorker

On Feb. 9, 2015 The New Yorker’s James Surowiecki wrote “A Fair Day’s Wage” about how after the New Deal and until the 1970s, many business paid a living wage, a policy supported by management specialists like Peter Drucker. Today, many companies “treat frontline workers as disposable commodities.” That may be changing. Recently, Aetna’s CEO Mark Bertolini read Thomas Piketty’s book “Capital In The Twentieth Century” and decided to raise his lowest paid workers hourly rate by at least twelve dollars an hour. Bertolini says “It’s hard for people to be fully engage with customers when they’re worrying about how to put food on the table.” MIT’s Zeynep Ton, author of  new book “The Good Job Strategy” says higher wages make “these companies end up with motivated, capable workers, better service, and increased sales.”

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