Morning Rosie
Re-reading your post this morning it strikes me that you are likely an economics lecturer/student of some description, and as has already been stated, I'm not. So I can't bandy statistics and theories with you ( and no bad thing to my mind, we all know what they say about statistics and theories), however DH and I have lived the life of "strivers" and self employment for the last 30 years, so I do feel our experiences can be observed as valid opinion.
It is in every citizen's interest that a country is peaceful and has good infrastructure, not just those with the initiative and drive to start new business'. Everyone needs these conditions to thrive, so I feel that is a non argument, personally.
Indeed, if the country wasn't in such a state, why on earth would anyone locate their FTSE 100 company there in the first place? They'd set up somewhere else and that country would benefit from the investment, jobs, tax etc.
A proportion of everyone's tax bill goes towards defense (sticking with your example), 7% was the figure I found. So, 7% of £2,000,000 = £140,000 compered to 7% of £26,000 (nat. average wage) = £1,820. I know these are gross rather than net figures here, but I have neither time nor inclination to work it out net. Proportionally, it illustrates my point. So the country's defenses receive a boost of £140,000 from our "imaginary" CEO whereas it only gets £1,820 from the average paid chap that works for him. Seems like the CEO is paying handsomely towards the defense of the nation that everyone needs to me. Not to mention of course that if that CEO hadn't set up his company, the defense budget would also be short of hundreds/ thousands of £1,820's because those folk wouldn't have jobs!
As regards your point about whether a "boss" deserves to be paid more than his workers I posit this:
If you have two men working on site, do you get twice the work done? NO.
If "the boss" isn't on site, does the remaining worker achieve as much as the "boss" would have? NO.
Does the worker care about client relations? NO
Would the worker stay 10mins longer to clean up the site properly? NO.
Does the worker give a toss where the jobs come from in the first place? NO.
OK, fair enough, he's paid to work set hours, is entitled to set breaks, doesn't have the vested interest a "boss" would have BUT he is always paid first and on time, doesn't have to go home, unload trailers and set them up for the following day, come in, eat tea and start working on the books, fall asleep in front of the football then wake up in the middle of the night worrying where the next jobs are coming from, spend weekends following up new enquiries, doesn't have to spend a fortune on advertising, doesn't have to maintain a business phone line, doesn't have to pay public liability insurance, doesn't have to not take any wage at all occasionally if the booking board is looking a bit ropey. I could go on.
So when things are going well and the board is full, do I think the "boss' is perfectly entitled to reap the benefits?
You're damn right I do!
CEO's of mega companies are just a scaled up version of this, our life. Someone, at some point, has had the idea, has taken the risk, put in the time, done without starting a family they weren't sure they could support, taken no holidays, run nails of cars, ensured their employees were paid before they were. And if it works and your children take over that business, are they entitled to reap the benefits? Again, you're damn right they are.
Anyone can take the self employed route. Anyone
If you don't want to take the risks and put in the time and effort, fair enough, take a regular, paid job, but don't bleat about it not being fair.
There will always be folk who play the system, at every and any level, but what really pisses me off on these boards is the consistent vilification of anyone who strives to make a go of a business and succeeds, and is then observed reaping the benefits, at whatever level.