Thank you very much Keith. " ... there have been 6 Republican-initiated shutdowns ..." I am not aware of any other Country in the World that engages in this game of national, economic chicken that represents grave risks to a Country's own financial standing.
Thank you very much Keith. " ... there have been 6 Republican-initiated shutdowns ..." I am not aware of any other Country in the World that engages in this game of national, economic chicken that represents grave risks to a Country's own financial standing.
Bryan I recall back in the 1950s when the head of AT&T received about $250,000 and other CEO compensation was in a moderate range. Now Fortune 500 CEOs ‘earn’ more than 300 times what a median employee receives. Also, they get signing bonuses and departure guarantees. I recall one CEO (female) who failed and received a $40 million departure pat on the back.
There has been no clear correlation between what a CEO ‘earns’ and how a company performs. Compensation is set by the board’s compensation committee, which wouldn’t wish to be ‘mingy’ towards their CEO. As for lawyers and all those in investment banking and similar professions, I find the compensation outrageous.
Among the reasons for income inequality, I’ll focus on just two. I recall, back in my youth, when senior management often had concern for their employees. In the auto and steel industry this was ‘assisted’ by unions in the late 1930s. I have witnessed (I ran a national management consulting company for nearly a decade) that there has been a sharp increase in companies being managed for EPS (quarterly earnings per share) and that employees are treated as widgets to be treated with no respect when possible. I believe that it is essential that there be a significant increase in unionization, especially in the service and technical industry.
Another major reason for this income inequality is that about 70% of our economy is in services. The pay has been low in retail, restaurants, and, especially in child care. This has been somewhat modified in post-pandemic hiring shortages, but the gap between those who seldom suffered pay loss during the pandemic [those able to work remotely] and those who were furloughed or fired is still massive.
Accumulated wealth, whether earned or inherited, is also a major issue in income and, especially, asset inequality. I know the argument why capital gains should be treated at a significantly lower tax level than earned income and I firmly disagree. Also, our tax code provides outrageous advantages to higher income individuals who have lobbyists assist them in working the Congressional system. Will any of this change? Not if McConnell and a number of Republican senators can prevent change.
Keith: that was a superior post and you covered a lot of territory. Thank you in particular for the analysis of the Pandemic Factors. Looking for a detailed economic/ human impact study of Meat Packing Plants in the Midwest 2020-2021 or similar data.
Daniel There are more schemers now and a volatile Internet, but today’s schlemiels might look with envy at the Piggly Wiggly short squeeze in the 1920s.
Thank you very much Keith. " ... there have been 6 Republican-initiated shutdowns ..." I am not aware of any other Country in the World that engages in this game of national, economic chicken that represents grave risks to a Country's own financial standing.
Bryan And that doesn’t include Reagan’s debt hissy fit in the 1980s.
Keith, Off-Topic, but, If you wish to post, the Community may be interested in any insight on pay/income inequality.
Bryan I recall back in the 1950s when the head of AT&T received about $250,000 and other CEO compensation was in a moderate range. Now Fortune 500 CEOs ‘earn’ more than 300 times what a median employee receives. Also, they get signing bonuses and departure guarantees. I recall one CEO (female) who failed and received a $40 million departure pat on the back.
There has been no clear correlation between what a CEO ‘earns’ and how a company performs. Compensation is set by the board’s compensation committee, which wouldn’t wish to be ‘mingy’ towards their CEO. As for lawyers and all those in investment banking and similar professions, I find the compensation outrageous.
Among the reasons for income inequality, I’ll focus on just two. I recall, back in my youth, when senior management often had concern for their employees. In the auto and steel industry this was ‘assisted’ by unions in the late 1930s. I have witnessed (I ran a national management consulting company for nearly a decade) that there has been a sharp increase in companies being managed for EPS (quarterly earnings per share) and that employees are treated as widgets to be treated with no respect when possible. I believe that it is essential that there be a significant increase in unionization, especially in the service and technical industry.
Another major reason for this income inequality is that about 70% of our economy is in services. The pay has been low in retail, restaurants, and, especially in child care. This has been somewhat modified in post-pandemic hiring shortages, but the gap between those who seldom suffered pay loss during the pandemic [those able to work remotely] and those who were furloughed or fired is still massive.
Accumulated wealth, whether earned or inherited, is also a major issue in income and, especially, asset inequality. I know the argument why capital gains should be treated at a significantly lower tax level than earned income and I firmly disagree. Also, our tax code provides outrageous advantages to higher income individuals who have lobbyists assist them in working the Congressional system. Will any of this change? Not if McConnell and a number of Republican senators can prevent change.
Keith: that was a superior post and you covered a lot of territory. Thank you in particular for the analysis of the Pandemic Factors. Looking for a detailed economic/ human impact study of Meat Packing Plants in the Midwest 2020-2021 or similar data.
Short answer is that there are more schemers now.
Extraction Schemes proliferate.
Daniel There are more schemers now and a volatile Internet, but today’s schlemiels might look with envy at the Piggly Wiggly short squeeze in the 1920s.
Thank you for the memory Professor Wheelock. I need to remember ALL the scoundrels.
I, of course was merely pointing out the need to factor corruption and misdeeds into any analysis these days.
But who can forget?