Progressivism Leading to Bankruptcy

CEOs who sacrifice themselves to give luxurious raises to employees in the name of income equality make Progressives and leftists swoon. Of course it never works once it is implemented. Dan Price of Gravity Payments in Seattle equalized his payroll across the board to $70k per year, including for new hires, at the expense of the harder working and more experienced senior staff. The results? Yep, the brains and experience quit and now the company is struggling. Oh, but what heroism! What self sacrifice! What dumbassery!

From the DC here:

Just three months ago, Dan Price was a progressive hero. To much fanfare, Price, CEO of Seattle-based Gravity Payments, announced he was raising the minimum salary for employees of his company to $70,000, and taking a $930,000 pay cut himself to help pay for his new minimum wage. Three months later, the experiment does not go well.

Price has had to rent out his own house to help cover his bills. In addition, Gravity lost two of its most valuable employees whose departure was “spurred in part by their view that it was unfair to double the pay of some new hires while the longest-serving staff members got small or no raises.”

Price’s brother and Gravity co-founder, Lucas Price, has also filed a lawsuit against the company that it, thanks to the new higher payroll, finds itself having difficulty paying legal fees for.

Obviously this company doesn’t have a board of directors or shareholders. Smart people don’t let this happen in the business world. This company will fail and I hope that Dan Price is never granted another loan to start up another business. This story is the perfect mimicry of the 20th Century Motor Company from Atlas Shrugged.