It looks like the Government and Union control in the U.S. has certainly hampered our ability to stabilize wages and perks in this country. When the top executives are paid 331 times more than their workers and then underpay their workers, the people need to stop and analyze how we can correct this inequity. The economist must take a hard look at reality and see how we need to take the genie out of the bottle and adjust for inflation so that people and the executives can enjoy the fruits of their labor, equally. These CEO’s would not be making these high salaries if they did not have the workers to provide the skills for the jobs. A company’s most valuable resource is its workers. There is growing evidence that a deep and widening schism has been developing between top managers and the workers in this country.
In the 1970’s, executives were paid 30 or 40 times what their workers were making. Now in some companies it is 331 times more than the employees. So the scales of pay are out of balance. The amount that is floating now is $15 per hour which is fine for a skilled worker. The rule that needs to be applied to the McDonald’s. etc., companies should have different levels of pay – such as a starting pay for youngsters, one-year, two-year, etc., in order to reach the $15 per hour amount. The companies in the U.S. need to work with each other to compare the scale of wages to stay in line from the bottom to the top.
Another problem is the unions. The government pay is totally out of line compared to the private sector. This certainly needs to be adjusted. Obama’s State of the Nation address only added to the confusion of inequality. In order to correct the inequality we have to look at the top and the bottom for comparison purposes. Obama blurred the distinctions between inequality, poverty, and opportunity. His statement that if we just gave poor people more opportunity to succeed, their basic line goes, and, poof, inequality goes out the window.
This is just a typical politicians “magic” factor. The offensive that needs to be put at the top of the list is the “rigged” factor. This is the capacity of the rich to be able to buy candidates and elections. Obama walked around this factor entirely.
Companies all need to look and work with each other to correct the pay inequity instead of waiting for the government to mandate a correction. If that happens, it will all go to hell in a hand basket. The companies need to take a lead in this direction. Leading is showing the way. Managing is directing and controlling. Employees want leadership. They can get by without a manager and still get the job done.
Also see Class Warfare dated January 24, 2014 and Class Warfare III dated June 10, 2014.