The current financial crisis in America has cost taxpayers and the average worker much more than it has the excessively paid CEOs guilty of mismanagement and corruption at underperforming firms. The conflict theory of sociology best describes this social problem. Conflict theory is based on the premise that social problems are the result of limited resources in society and different groups with different power vying for those resources. This leads to issues like corruption among top CEOs, who profit from exploiting the work and pensions of workers. The wealthy control society and its institutions. Therefore the wealthy, powerful CEOs control law enforcement and legislators more than the poor. As one sociologist says of conflict theory, "The criminal justice established aims at imposing standards of morality and good behavior created by the powerful on the whole of society. Focus is on separating the powerful from have nots" (Conflict 1). In this sense, wealthy CEOs benefit from lucrative payouts at the expense of shareholders or employees, from companies like Enron to Home Depot.
In 2006 Pfizer's Henry McKinnell and Home Depot's Robert Nardelli both received exit packages over $200 million each, despite declining stock performance at each company (Executive 4). Legislators, also wealthy and powerful, voted for huge bailout plans to many corporations that were mismanaged and where executives received enormous payouts. These came from hardworking-taxpayer dollars, despite the fact that many of these executives looted pension plans or devalued stock prices for workers at their companies. Countrywide Financial Corporation CEO Angelo Mozilo received a severance package of more than $37.5 million, despite the firm's failure (Executive 2). Because CEOs or corporate America and legislators are powerful and wealthy, the social institutions they create and control (corporations, education, law enforcement, etc.) a...