Billmon: Trusting the Marketplace

Confronting critics of the Bush administration's economic record, Treasury Secretary John Snow said the widening gap between high-paid and low-paid Americans reflects a labor market efficiently rewarding more productive people . . . Mr. Snow said the same phenominon explains why compensation for corporate chief executives has climbed so sharply.

"In an aggregate sense, it reflects the marginal productivity of CEOs. Do I trust the market for CEOs to work efficiently? Yes. Until we can find a better way to compensate CEOs, I'm going to trust the marketplace."

Wall Street Journal
Snow Defends President's Handling of Economy
March 20, 2006