Statistics show wages have been flat for working people over the last 39 years. I can verify our Social Security has remained flat as a pancake for the last 11 years.
At the same time, wages for CEOs and executive level jobs have sky rocketed.
The chart shows that even with the two dips in CEO compensation since the year 2000, they were still making 200 times more than the average worker.
A CEO has more education and theoretically more wisdom than an average worker, but here is the fly in the ointment; can a CEO or an executive do anything or have any worth without a good team of what we call the average worker? I can only surmise here, but a CEO making millions of dollars a year doesn't have to learn how to live on low pay scales. In the ivory towers, the biggest concern is how big the golden parachute will be when the company board members realize he/she no longer has any value to the company. The average worker has to learn how to stretch a dollar to the bursting point just to survive and when the CEO decides a reduction in force is necessary to pump up the bottom line and keep the shareholders happy; the average worker has to worry how he/she can get another job before the unemployment train stops to kick everyone off the passenger car. Unemployment statistics show record low employment at the moment (Those statistics only count those drawing unemployment compensation and do not include those whose unemployment compensation ended and they still could not find a job.), and there are no statistics on how many of those jobs pay a living wage.
The average wage for secretaries currently is $31,125 a year and my experience has been when the department heads are gone and the secretaries run the show, things seemed better and secretaries made less than that back then. Retail clerks make very little. Custodians make little money, yet where would we be without them? The most recent government shutdown showed that even well paid federal workers (average wage $70,000) were struggling for their existence in just over 30 days. A study done during the shutdown found average workers could not cover a $400 emergency. Where does that leave those making far less?
Compensation in our country resembles a pyramid with the highest earners at the top. A pyramid is composed of huge, heavy blocks going up with triangular sides. The wide base of the pyramid holds the weight of the pyramid. In time the pyramid begins to sink under its huge weight. When the pyramid sinks, the top sinks with it. My question is: when will the top begin to realize that their position will collapse when the base does? I cannot help but wonder how close we are to that happening?
Me being around back in what many consider long ago history, I remember the 50's, 60's, 70's when everyone in the working class made good money for the time and the boys at the top did too. The country and the economy worked for everyone. And then in 1981 came a little thing called "trickle down economics." The concept was that businesses paying less taxes and less taxes for the wealthy would stimulate the economy and prosperity would trickle down to society at the bottom of the scale. It did seem to work well for the top, but those at the bottom of the scale are still waiting for it 38 years later.
The common wisdom I have heard is if people go to college they will get better jobs and better wages. Below are some interesting statistics:
If you are still reading this, I rest my case.
Copyright Bill Weber 2006-2019 and beyond.
The chart shows that even with the two dips in CEO compensation since the year 2000, they were still making 200 times more than the average worker.
A CEO has more education and theoretically more wisdom than an average worker, but here is the fly in the ointment; can a CEO or an executive do anything or have any worth without a good team of what we call the average worker? I can only surmise here, but a CEO making millions of dollars a year doesn't have to learn how to live on low pay scales. In the ivory towers, the biggest concern is how big the golden parachute will be when the company board members realize he/she no longer has any value to the company. The average worker has to learn how to stretch a dollar to the bursting point just to survive and when the CEO decides a reduction in force is necessary to pump up the bottom line and keep the shareholders happy; the average worker has to worry how he/she can get another job before the unemployment train stops to kick everyone off the passenger car. Unemployment statistics show record low employment at the moment (Those statistics only count those drawing unemployment compensation and do not include those whose unemployment compensation ended and they still could not find a job.), and there are no statistics on how many of those jobs pay a living wage.
The average wage for secretaries currently is $31,125 a year and my experience has been when the department heads are gone and the secretaries run the show, things seemed better and secretaries made less than that back then. Retail clerks make very little. Custodians make little money, yet where would we be without them? The most recent government shutdown showed that even well paid federal workers (average wage $70,000) were struggling for their existence in just over 30 days. A study done during the shutdown found average workers could not cover a $400 emergency. Where does that leave those making far less?
Compensation in our country resembles a pyramid with the highest earners at the top. A pyramid is composed of huge, heavy blocks going up with triangular sides. The wide base of the pyramid holds the weight of the pyramid. In time the pyramid begins to sink under its huge weight. When the pyramid sinks, the top sinks with it. My question is: when will the top begin to realize that their position will collapse when the base does? I cannot help but wonder how close we are to that happening?
Me being around back in what many consider long ago history, I remember the 50's, 60's, 70's when everyone in the working class made good money for the time and the boys at the top did too. The country and the economy worked for everyone. And then in 1981 came a little thing called "trickle down economics." The concept was that businesses paying less taxes and less taxes for the wealthy would stimulate the economy and prosperity would trickle down to society at the bottom of the scale. It did seem to work well for the top, but those at the bottom of the scale are still waiting for it 38 years later.
The common wisdom I have heard is if people go to college they will get better jobs and better wages. Below are some interesting statistics:
If you are still reading this, I rest my case.
Copyright Bill Weber 2006-2019 and beyond.
No comments:
Post a Comment