I posted a while back about the blue collar vs executive wage spread and how if it continues there will be an armed rebellion. The spread between CEO types and his workers exceed 400 times. And remember, the poor all own guns. Ben Stein, Fred Barnes, and a hell of other Right Wing types are noticing now. Below is from the Weekly Standard.
Center-left think tanks and opposition politicians are not the only ones expressing concern about trends in income distribution. Federal Reserve Board Chairman Ben Bernanke recently told a congressional committee, "We want everybody in this society to participate in the American dream. We want everybody to have a chance to get ahead. And to the extent that incomes and wealth are spreading apart, I think that is not a good trend."The reason candidates won't talk about this issue are complex but at the top of the list is the fear that lower paid people will actually rise up. Another reason is that Democratic doners are among the worst in that regard.
3 comments:
Howard do the math!! Let's take Wal-Mart as an example since it the current "enemy".
They have 1.8 million fulltime employees. The CEO makes $5.23M. If you pass a law that he can only make $0.23M and the rest gets redistributed to the employees, how much do they get? ($2.78/year)
It is not enough to pay for their healthcare.
Rick
Overall executive salaries and perks in our business culture are outrageous, and they get raises when they fail, when market share slips, when they can't pay dividends and so on. As I published before, there are a ton of corps with salaries in the thirty and forty million per year class PLUS perks. All of these guys are in the "I want to make money" business and not their supposed business.
Hi Howard,
This is the first time at your blog via Maxed Out Mama and really enjoy it. I'll add you to my blogroll.
As to the executive wage spread. The armed revolt won't happen until the little guy can no longer pay the bills at a wage expected at an entry-level business position.
For example, no one expects to live on McDonalds wages. And, in fact, most people working there are teens or new immigrants. The teens don't need the money to live and the immigrants share expenses with many family members.
The revolt will come when college grads join the workforce and can no longer pay the bills. That could happen, too. Should the economy hit the dumper, people overextended by mortgages and lifestyle will panic. Unlike the working poor, they are not used to a low standard of living.
Right now, with so many women in the workforce, the economic loss of one income is cushioned by the spouse's pay. A circumstance where both are out or one has a health crisis that demands the spouse's attention and all heck breaks loose. Thus the high rate of bankrupcy.
A trend I see that has been mediating the potential for revolt: multi-generation families where the grandparents watch the kids for the parents who work. That way everyone lives at a higher standard of living.
Executive pay is outrageous (especially the CEO, COO, CFO). I don't see it changing--it's like the Senate with Term Limits. It's clubby at the top and it corrupts.
Melissa
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