Wednesday, November 20, 2013

Walmart and McDonald's just don't make sense

They need to pay their employees a living wage. While we could sit around waiting for the Federal Government to raise the minimum wage again to a level that will still leave most folks at the poverty level, we should push the corporations who really run this country into paying their workers more. With record profits for most corporations despite the recession, we've let the media lull us all into the idea that the economy has been so terrible and let's blame the President for unemployment. We've watched companies lay people off, while stock prices are soaring to record highs and somehow we've thought that makes sense?

Well it doesn't make sense, when at the same time these corporations are paying their executives record high salaries. It doesn't make sense when the CEO's retirement plan is 6200 times higher than his employees.

This isn't a new problem it's been trending this way for since the 90's and at the risk of sounding like a socialist it's time for workers that allow these CEO's these incredible salaries to do something about it. Take a look at the data below from the Economic Policy Institute in 2006.

"In 2005, the average CEO in the United States earned 262 times the pay of the average worker, the second-highest level of this ratio in the 40 years for which there are data. In 2005, a CEO earned more in one workday (there are 260 in a year) than an average worker earned in 52 weeks." [emphasis is mine]
Figure A: Ratio of CEO to average worker pay, 1965-2005
The trend has continued and here we are with the 2011 data and nothing has changed! 9/11 set it back a bit but for less than a year and still at a record high, the 2008 recession barely made a dent in it. 
"...the ratio bounced back during the recovery and stood at 243-to-1 in 2010. At this rate, it likely will not take long for the gap to reach its prior peak."

Is there something wrong with this picture, you're god damn right there is, it just doesn't make sense!



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