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quote:
Originally posted by geochem
Must be something wrong with a system that pays someone else more than me. Can't be because they work harder, or are smarter, or are worth more to their company than I am to my employer.
There are more intelligent people, and harder working people. But a company bases pay on different measures. For their labor force they will calculate their workers wages down to the hundredth of a penny per hour based on output of product. For the company's executives, that's not possible as they do not create anything, so they are paid on a comparative basis to what executives at other companies are paid. If the CEO of XYZ Corp gets $24 million a year, ABC Corp will pay their CEO $25 million. There is no other basis in reality for those salaries. Their measure of success is how much they are paid, because what else is there to measure? Nothing.
Now what if these CEO's were paid $15 million each? Would it change their lifestyle? Would they have to make any changes in their lives at all?
Many shareholders are trying to get corporation boards to vote down these ridiculous salaries, as they are the biggest drain on company profits. Don't think corporations can find anyone to take that CEO job for less? Think again. When the world economy tanked in 2008 companies started to let go of their CFOs CIOs etc because they found applicants waiting in line to work at those positions for 1/2 the cost. CEOs continue to command the high salary because they can, but only until one or two large companies are successful with lower paid, highly qualified CEOs. There are people standing in line to take those jobs.
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
The issue of rising prices is bigger then just overzealous unions and over paid CEOs. Although one must wonder why the economy is such that those unions and CEOs dont face stiffer competition driving prices down, that is related to the big issue. Everything we are talking about has one thing in common, money. What is money? Who controls it? Who makes it? Who benefits from it after it is made? What effect does making lots and lots of money and giving it to the well connected have on the economy and on prices?
These are the questions behind all these issues that need to be answered.
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to answer your question we need to go off island to the FED.
It has been pumping money (liquidity) into the system for the last 5 years....to cover the 2007 bank losses and the resulting shock to the system.
The Fed is the only entity printing or creating money in this country they also set interest rates they will pay on this printed/ manufactured money until it comes due currently at less than 1% "cheap money"
last I read we were printing $65 - $85 million a month into the financial system "bubble"
so for five years the money supply has been increased by that amount - making the cash in circulation less valuable. "FIAT money"
A hall mark of the fiat economy cycle is implosion when looses trust (bank run)
The average cycle of FIAT economies being 27-40 years depending on the pundit - the first was a chinese dynasty -
http://www.ronpaulforums.com/showthread....s-27-Years
Some ceos making the news because they are being paid in bitcoin .....
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The argument that raising the minimum wage will kill small business is one that has been used for as long as there has been a minimum wage. It hasn't happened yet because it isn't true. It sounds like sound economics but true economists have found repeatedly that just the opposite is true. When people have more money and aren't just surviving they buy more which is good for all business. Granted the small business owners have to pay a few employees more but when there is more discretionary income in a community statistics show that, providing the small businesses are providing a service or product that is needed, the increase in sales more than offsets the increased operating expense. What is killing small business are the corporations who deliberately set out to destroy competition by dealing in volume, often at an initial loss they can absorb and paying low wages so their employees don't have discretionary income to spend in the community.
life is short. enjoy it
life is short. enjoy it
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Since were talking about CEO's and their pay I thought I would put this bit of news today.
GM NAMES FIRST FEMALE CEO: General Motors’ board of directors on Tuesday elected Mary Barra to become CEO—the first woman to lead GM or a major automaker ever. (The news comes a day after Washington sold its final shares in GM.) Barra joined GM at 18, rising through the ranks to become heir apparent as executive vice president. Chief Dan Akerson will retire several months early after his wife was diagnosed with advanced cancer, according to a statement.
So she started at age 18 at GM. Like many CEO's they worked their way to the top of the food chain where the weaker were weeded out. I say good for her. Should we limit her pay? Yep, Just as I thought we do live in America.
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Here's a link to an article that compares CEO pay to worker's pay. A couple of examples cited:
* In the last 5 years the average CEO pay has gone up 109%, worker pay 10%
* A worker at McDonalds would have to work nearly 4 MONTHS of OVERTIME pay to equal one HOUR of pay for their CEO (that CEO must be a whole lot smarter and work a whole lot harder than his employees):
http://www.nerdwallet.com/blog/investing...r-ceo-pay/
"I'm at that stage in life where I stay out of discussions. Even if you say 1+1=5, you're right - have fun." - Keanu Reeves
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Perhaps when the government takes over these business and nationalizes them then we can argue as to how much a CEO is worth.
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If we dont pay back the chinese - that just may happen - grin
They hold a lot of paper - a default would be ugly and we sure are in the geographical cross hairs if you will.
They (the chinese) do have an affinity for Hawaii - Hong Kong seems to be doing o.k.
If they got us and Taiwan maybe they'd forgive the rest of the debt.
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terracore says "Since you didn't address the points I raised I must assume they are correct."
You might benefit from a book on basic logic before you claim to be 'correct'. If you want me to address a point you raise, skip the attacks and snide remarks.
Russell
Russell
Just read another article about another state that is about to raise their minimum wage. Washington State I believe is raising the minimum wage to $15 an hour by April 1st 2015. This is the fairest wage increase yet, Hawaii may be raising the minimum wage to $10 an hour by 2018(haha). Cost of living is a joke right now especially here in the Welfare capital of the nation(Puna). Also the larger businesses of 500 employees or more(walmarts, Burgerkings,ect) will have to make these changes first.
P.S. Curious to know what you folks think the minimum wage should be in our great state of Aloha? OR How high should it be moved so we can get folks off the welfare system and back to work?. Or maybe their just aren't enough jobs for the population growth in Puna that the state would rather have more on welfare than the minimum?. Maybe the current wage, insurance, workers comp, ect is already to hard to pay for most businesses?. Maybe the state could lower things like county housing benefits to say something affordable like $500 a month?. Would this help or hurt the minimum wage workers?. Anyway Hawaii is slow in this recovery process as well.
