RAO’s SOLUTION

 

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IMPORTANT NOTICE:

To:  All Publishers, Printers, Literary Agents and Marketing Service Providers:

Please click on the following link for important information if you have interest in publishing and/or providing any service related to the marketing of Rao’s Solution.  This includes anyone interested in purchasing movie, video or any other rights in the book.

https://reasonandbalance.com/to-literary-agents-market-service-providers/

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Dear Readers:

Rao’s Solution by David Dixon Lentz is a fictional story that blends international intrigue, romance and some extremely relevant and important economic lessons the suggest a way to lessen the wealth gap between rich and poor.  And, no it’s not communism.

The author’s explanation of Rao’s Solution is at the bottom of this page. However we start with an important example of how it would operate in the context of Elon Musk’s gigantic $29 Billion bonus.  This bonus was granted by Tesla’s shareholders in August of 2025 when they awarded Musk another bonus the value of which appears to range anywhere from $23 to $29 billion.  This is probably in lieu of  the original $50 billion bonus which has run into legal trouble in Delaware.  What are the consequences of this?   Will this further widen the wealth gap between rich and poor?  Does this hurt or help democracy?

Here’s the 3 minute video explaining how the formula in Rao’s Solution actually operates.  In other words, it actually provides Rao’s formula.  It does so in the context of one of Elon Musk’s proposed Tesla bonuses in the Fall of 2025. [Please note that the 100 to 1 ratio was chosen as an example and used in Rao because that was the approximate ratio that actually existed in the 1960s.]

https://www.youtube.com/shorts/dGJGO50et-E

Capitalism and free markets are great.  History has shown that they are the best way for society to generate wealth.  But like nuclear power, which can unleash untold amounts of energy, capitalism and free markets can cause problems, just like an insufficiently contained nuclear power generator..  The freer the economic system is the more likely it is that wealth and thus economic and often political power will accumulate in the hands of fewer and fewer people.  This is why, on the economic front, we have laws preventing/restricting monopolies.  The point is that laws have to be enacted that prevent the accumulation of too much wealth, and thus economic and hence political power, into the hands of just a few people, or a dictator.

But before we talk about the novel, let’s look at one hugely important practical application of the major economic point made in Rao:

Broadly speaking, here’s Rao’s totally unique approach to compensation, which should at least start the process to decreasing the unacceptably large wealth and income gaps between CEOs and working people:

RAO’S VERY UNIQUE SOLUTION

 

TIE WORKER PAY TO CEO PAY

 

COMPANIES ONLY HAVE TO PAY

HIGHER WAGES

IF THEY PAY CEOs MORE…..THUS

 

  1. RAO’S SOLUTION

DOES NOT LEGALLY REQUIRE

COMPANIES TO PAY

HIGHER MINIMUM WAGES

 

  1. NOR DOES IT MANDATE THAT

COMPANIES INCUR GREATER

WAGE EXPENSE FOR WORKERS

( UNLESS THEY

   INCREASE CEO PAY)

Here’s the original explanation of Rao’s Solution done when the novel was published.

 

Here’s the link to purchase Rao’s Solution:

https://store.bookbaby.com/book/raos-solution

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