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+--- Thread: Solving the Welfare burden (/showthread.php?tid=15836)
RE: Solving the Welfare burden - OnoOno - 04-17-2015
quote:IMHO, there should be NO Federal Minimum Wage - no provision of the Constitution even remotely authorizes it. For States, it is up to them, but I balk at the very concept at a government mandated minimum price for anything - labor included.
Originally posted by Kapohocat
quote:
Originally posted by OnoOno
People need to pay their own way. When I was a kid, I worked at the Holiday Inn washing dishes. I was paid $1.35 an hour and paid more taxes then than 40% of Americans do today.
Not disputing your comment, the following is just putting it in another perspective.
The minimum wage was $1.35 in the mid to late 1960's.
According to the inflation calculator online I used, $1.35 equates to $9.44 in 2014 dollars. (1967 - 2014). Hawaii Minimum wage has not kept up with inflation at the current $7.75. And of course Hawaii COL is above national average as we all know.
Additionally back in the day, CEO's made 20 x what the lower paid employees made (not a bad deal then!!), today it is estimated at 300 to one.
Matson CEO - 2012 $2.1M
HEI CEO - 2012 $5.8M
Hawaiian Airlines CEO - 2012 $2.7M
For welfare burden to ease, besides education, and building experience with a skill, the disparity between upper and lower wages needs to decrease by a decent percentage. I am not saying CEO's shouldn't be paid well, they got a big job.
Also by decreasing CEO's salaries and increasing the bottom wages, profits wouldnt take a hit and shareholders would still be happy.
But since companies compete for talented CEO's this probably wont happen but with a handful of companies although Cost Co has managed it! When did CEO's become rock stars? Based on the corporate drama the last 10 years they certainly do not rate it.
From:
http://www.hawaiinewsnow.com/story/22084152/ceo-pay-soars-hei-receives-f-for-executive-pay
Read the article - HEI's ceo wasn't getting glowing reviews for his $5.8M
Market forces, i.e. the collected wisdom/input of all who have "skin" in the game, are, by exponential factors, the best determiner of the value of anything, be it labor or lasagna.
CEO's are paid what they are paid (and most of their "pay" is not salary, but performance-based benefits) because the BOD of that Co feels that he or she is worth it - that their services at the helm will far more than make up for the costs of employment. No BOD of would hire a CEO for, say $50,000,000 if they didn't think his contrubition to the bottom line, i.e. profits, would far outweigh $50,000,000.
For example, if you were confident, based on your past proven track record, that you could bring in an additional $500M in Profits to a company, wouldn't you hold out for 10% or more of that benefit that you will bring? Wouldn't you hold out for as much as you could get, based on who else is available for the job, and how much or little they would take the job for. Nobody, not a farmer, day laborer or CEO would work for less, when they know they can get more.
Rock Star status is a meaningless statement, no insult intended. It has to do with performance measured at the bottom line, and little, if anything else - even in Puna.
Be aware, very, very aware, that ANY outside manipulation of prices, for commodities, service or labor, including CEO intellectual labor, will universally make things worse. Only competition and market forces, and the ability to avail oneself of both, will better one's lot in life - even in Hilo.
Ono - So Fast - So Tasty!