Monday, November 25, 2013

The only solution to wealth inequality in America

The only real solution to wealth inequality is to cut the top level executives pay dramatically to reduce the inequality between their pay and their average employees pay. This would give more money to the poor and the middle class directly. Funneling it through the government via taxes never works out well for anyone especially the middle class. If the poor and middle class earn more they will in turn pay more tax to the government and thus solve all our economic problems. We just need the top 10% to let go of some of their money and stop being so greedy and selfish. 

This approach of paying the worker more has worked in the past to make fortunes for the auto companies. 

 "$5 a Day – the famous $5/day wage, instituted in 1914, was approached by few workers, but it helped limit the turnover of 300%; the higher overall wage also allowed workers to purchase the product that they were manufacturing (analogy to Bush directives for Americans to do their “patriotic duty” and purchase stuff in reaction to Sept. 11)"

Creating charity organizations like the Bill and Melinda Gates Foundation is just another way they can avoid be taxed and look like they actually are doing something to help the world, when the employees in their production stream are the ones who could benefit the most from their help and in turn the businesses and people in their communities would benefit. 

When you have more than even your children can spend in a lifetime isn't it time to rethink how you're paying your employees and your supply chain partners and their employees? 

Now I don't think any executive is going to willingly take a pay cut so my solution is that we all walk out of our jobs on Thanksgiving and no one goes back to work until the wealth is redistributed properly. We the people have the power, but fear keeps us from doing the one thing that could change the situation. This was the power of unions, they got us the 40 hour work week and safe work environments, things other countries still don't have (garment workers still dying in sweatshops in Bangladesh, those sweatshops used to be here in America before unions). Why do you think the capitalists and politicians worked so hard to bust the unions? Why do you think union workers still have decent wages and retirement plans that are actually funded? 

We need to adapt the Big Bill Haywood approach to equality, start a revolution and get this greed back under control. 

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!