Pay Gap Between CEOs and Hirelings Still Widens
|May 15, 2014||Posted by Staff under Inequality / Concentration|
This 2014 excerpt of Common Dreams, Apr 16, is by Jon Queally.
The AFL-CIO’s latest ‘Executive Paywatch’ report shows the astronomical disparity between the annual pay of the nation’s top executives —- which continue to rise year after year —- and the stagnant wages that middle class and the working poor continue to suffer.
U.S. CEOs averaged $11.7 million in 2013 while the U.S. worker earned $35,293. That means CEOs were paid 331 times that of the average worker.
In 2013, CEOs made 774 times more than those who work for minimum wage.
While many of these companies argue that they can’t afford to raise wages, in 2013 the S&P 500 companies earned $41,249 in profits per employee.
Workers continue to scrape by in an economy that has left them out of the so-called recovery.
Ed. Notes: While CEO pay is way too high, why don’t critics ask why? Since they don’t ask, they can’t answer. Let me give it a shot. It’s because Big Business gets:
- corporate welfare,
- sweetheart deals on contracts,
- leeway to violate laws, even fail to pay what they owe (such as royalties) and not get punished,
- shift taxes and other costs onto employees and consumers, and they get to
- capture what should be our common wealth (the economic worth of government-granted privilege like limited liability and the worth of Earth).
All this tilts the playing field, giving them the competitive edge over both small business and people needing jobs. And, as noted above, companies don’t have to negotiate with employees who’re enjoying material security.
While workers might not receive fair pay, it’s because they receive zero, no, portion of the common wealth. Imagine if everyone got a share of the worth of Earth — sort of like what’s done in Alaska with oil value and in Aspen CO with land value. If you got an extra income without working, for just being a decent member of society with an equal right to Earth, then you’d have a bit of financial cushion which you could use as leverage to negotiate a higher wage.
So the solution to low wages is not to legislate higher wages but to demand a fair share of society’s surplus. Not only would workers benefit, but so would people who’re not working — children, the elderly, the infirm, and the misfits who do not belong in conventional society but in a world that no longer exists or has not yet been born.
If we shared the immense stream of spending for nature — for land, resources, EM spectrum, ecosystem services, etc — automatically, if everyone got a share, even the rich, automatically, then we could shrink government bureaucracy and bureaucratic programs to an absolute bare minimum. When government is not too active, then it does not need so much money; its budget could be shrunk and its taxes along with it. Despite the critics’ demand for higher taxes, lower overall taxes would benefit workers (they’re the ones working from Jan 1 to early May to pay all the taxes levied upon them) more than the rich, as long corporate welfare and the rest of the favors (above) for business are repealed.
So, do be concerned about inequality and unfair pay but do demand a solution that truly works: geonomics.