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Maraya1969

(22,441 posts)
Tue Sep 25, 2012, 01:22 PM Sep 2012

I have an idea about how to fix the CEO/worker wage disparity and maybe some others have ideas also?

Last edited Tue Sep 25, 2012, 02:08 PM - Edit history (1)

First off please don’t just say, “It won’t work” unless you have a suggestion to place after it or an explanation that could be helpful. I am just throwing out an idea here and hopefully it will get other people’s ideas up or other people to start thinking about how to solve this problem that we have in our country.

I will limit this argument to food stamps for now.

Doesn’t it seem like the person’s company should be written down in the food stamp process and that said company should be given a bill by the state governments for the amount that the government gave said company’s employee if the government finds out that that said company indeed has enough money to pay the employee for his or her own food?

That way Starbucks, that made a profit of 6.2 billion in 2010 and paid its CEO 26 million that year would be responsible for the Starbucks employee, (who makes $8.77/hour) who receives $150/month for food from the government.

It would have to be made a law of course but I think it is only fair.

Editing to add that it might be a black eye on the company that would work to make them increase their employees wages. Not many people that I speak to know that Walmart employees are on food stamps for example. But if the government gets involved it might become more widely known and companies might just have to increase their wages or lose customers, (then again Walmart still seems to be doing good but their prices are obscenely low)

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abelenkpe

(9,933 posts)
2. Why are businesses that cost communities for not providing
Tue Sep 25, 2012, 01:33 PM
Sep 2012

A wage that covers food and healthcare not seen as moochers?

robinlynne

(15,481 posts)
3. Costco has the perfect solution. The difference between the highest paid worker (CEO) and thelowest
Tue Sep 25, 2012, 01:49 PM
Sep 2012

paid worker can never be more than 12 times. period. if the CEo wants a raise, he must give a raise to the janitor.
the results: happy workers, high productivity, lots of profit, business growth, easily attracts good workers who stay long term, nobody quits.

Maraya1969

(22,441 posts)
7. That is the way it was back in the 60's and before when there was not "class warfare".
Tue Sep 25, 2012, 01:57 PM
Sep 2012

I think Panara Bread might pay its employees well although I am not sure. I know you are not supposed to tip and if you do they give it to charity.

We need to find a good progressive congress person who is willing to bring some sort of legislation up or start a petition or something.

OneGrassRoot

(22,917 posts)
8. That's my focus and it seems like common sense to me.
Tue Sep 25, 2012, 01:59 PM
Sep 2012

They employ such limits in Europe and it seems to be working fine.

There is a knee-jerk response by many people -- right and left -- to the word "limit."

I don't understand it, personally. When there is obscene, wasteful wealth, no one should go hungry, without healthcare, without shelter.

If that means limiting greed, so be it.

hughee99

(16,113 posts)
11. According to this, the average Costco worker makes about $45k
Tue Sep 25, 2012, 02:26 PM
Sep 2012

James Sinegal made $350k last year (about 8 times as much)... and his total compensation was 2.2 million (about 49 times as much).

By comparison, both Steve Ballmer and Warren Buffett were closer to their own employees in both regular salary and total compensation. Both their companies made far more in profit and neither made as much in total compensation.

http://money.cnn.com/magazines/fortune/fortune500/2012/ceo-pay-ratios/

 

Egalitarian Thug

(12,448 posts)
6. Definitely a step in the right direction, a modest start.
Tue Sep 25, 2012, 01:53 PM
Sep 2012

I wonder however if this could get by our Congress. Obviously the GOP would oppose it, but I also think that there are too many "business friendly" Democrats for this to get out of committee.

Do you think this would be better than a significant raise in the minimum wage? The current rate of $7.75 is ridiculously low. In your example, raising it a mere dollar per hour would exceed the charge to $tarbucks and has the added benefit of avoiding the intrusion and stigma associated with food stamps.

One of the effects of the vanishing middle class is that ever more people are pushed down toward the low end of the income curve. One of the more relevant aspects of the last wage survey I saw was the mode of the data. While the mean wage declined somewhat to forty-something thousand, the most common wage was in the neighborhood of $26,000. This seems to indicate that a minority of people are making significant gains while a much larger majority are suffering major losses in their incomes. That's the problem with focusing entirely on averages, it's the old "Bill Gates walks into a room of 10,000 unemployed people and suddenly everyone's a millionaire on average" scenario.

As we move closer to a situation where minimum wage is becoming the prevailing wage, raising the floor becomes more and more important. Of course raising the minimum wage would be just as difficult to get through Congress as you idea would.

Maraya1969

(22,441 posts)
9. Hopefully if you made them pay for the food stamps they might just decide to pay their employees
Tue Sep 25, 2012, 02:02 PM
Sep 2012

better. It would be a big black eye on a company to be known as one who has to pay the food stamp office.

And the only problem with the minimum wage is it is sooo minimum. I supposed you have to start somewhere though.

Maybe the idea is with companies like Costco. I shop there and maybe I'll shop there more now that I know how they pay their employees. I don't shop at Walmart but I end up at Walgreens for my prescriptions. (hint - I could get my prescriptions at Costco)

 

SheilaT

(23,156 posts)
10. It's an interesting idea.
Tue Sep 25, 2012, 02:14 PM
Sep 2012

I just can't think of a good way to enforce it, what kind of laws would need to be passed, but it certainly has possibilities.

Keep in mind, that many members of the military also qualify for food stamps.

Also, I have no idea what percentage of the food stamp users are not employed.

Maraya1969

(22,441 posts)
12. This is only for the huge number of people who are employeed and have to collect
Tue Sep 25, 2012, 02:29 PM
Sep 2012

food stamps just to make ends meet. Another of my friends works at Walgreens and she has been working there for years. I don't know her wage but she told me she gets food stamps. That is just not right. To work at a company for years and the government still has to give you assistance! Why isn't Walgreens paying her enough? I happen to know a lot of people at this one Walgreens. The one who told me what she is paid said she gets a little over $10/hour and she has been there 10 years! And they don't want managerial jobs because then they just work you to death and you end up getting less per hour!

It is just wrong. Flat out wrong.

Oh and it would not concern the military of course. They are already being paid by the government.

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