The boss who put everyone on 70K (bbc.com)

Article summary

The CEO of Gravity Payments, Dan Price, introduced a $70,000 minimum salary for all employees in 2015, taking a significant pay cut himself. This decision was made after realizing that many of his staff were struggling to make ends meet, despite the company's success. Five years later, the company has seen significant growth and improvements in employee well-being. The move was seen as a gamble, but it has paid off, with the company's value increasing and employees able to afford better living standards.

Main themes

• income inequality
• minimum wage
• standard of living
• purchasing power
• GDP growth
• worker productivity
• inflation
• economic growth
• company culture

What commenters say

• The introduction of a $70,000 minimum salary is a positive step towards addressing income inequality, but it may not be a viable solution for all companies.
• The purchasing power of $70,000 has decreased significantly over time, and it is no longer considered a middle-class income.
• The quality of goods and services has improved significantly since 1950, and the standard of living that $70,000 buys today is vastly better than what the median income bought back then.
• The decision to raise the minimum salary was not without controversy, with some arguing that it would lead to laziness and decreased competitiveness.
• The impact of inflation on the value of $70,000 is a complex issue, and different calculations can produce different results.
• The comparison between the value of $70,000 today and its equivalent in the past is not straightforward, and different perspectives can lead to different conclusions.
• The idea that $70,000 is a relatively low salary, especially in expensive cities like Seattle, is a point of contention among commenters.
• The relationship between GDP growth and worker productivity is complex, and the fact that workers are more productive today does not necessarily mean that they should earn more.