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Old 12-03-2012, 05:43 PM   #104
chiefzilla1501 chiefzilla1501 is offline
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Quote:
Originally Posted by Fish View Post
Huh? I don't understand what you mean. Why would I need my paycheck signed by a poor person? That doesn't make any sense.

Here's what I see:

Corporations have been given massive tax breaks and lack of regulation for several decades. It went way up under Reagon, slightly down under Clinton, then way back up under Bush. All this was done with the idea that these corporations would better grow the economy better without oversight from the government.

But what's happened?

Instead of creating jobs, or reinvesting money, or expanding US development, these corporations have instead created the greatest income inequality that the world has ever seen.

CEO-to-worker compensation ratio, with options granted and options realized,1965–2011


Source: http://www.epi.org/publication/ib331...top-1-percent/

From 1978 to 2011, CEO compensation increased more than 725 percent, a rise substantially greater than stock market growth and the painfully slow 5.7 percent growth in worker compensation over the same period.

Using a measure of CEO compensation that includes the value of stock options granted to an executive, the CEO-to-worker compensation ratio was 18.3-to-1 in 1965, peaked at 411.3-to-1 in 2000, and sits at 209.4-to-1 in 2011.

Using an alternative measure of CEO compensation that includes the value of stock options exercised in a given year, CEOs earned 20.1 times more than typical workers in 1965, 383.4 times more in 2000, and 231.0 times more in 2011.

So yes, corporations get credit for growing the economy around the turn of the century. But what can you say they've done since then?

They've had an incredible advantage for a long time. So why are we in an economic crisis? We've given corporations all these incentives, yet when things get tough, they have mass layoffs and hoard the money, while retaining executive pay that's well over 200% than its workers.

I'll ask you the same question that blaise never could or would answer.... How is this practice good for America? In what ways does this type of capitalism help the US economy?
Capitalism is great for the US economy. In my opinion, the private sector SHOULD be the engine of the economy, but not if corporate greed leads to executives hoarding cash. Which is what's happening today.

I don't know why this is a hard concept for people to grasp. Executive compensation is a COST, not an expense. Which means that when executive compensation goes up, cost goes up. It is hypocritical for businesses to cut costs across the board, then significantly jack up compensation costs for a few. The kicker is... while investing a million dollar in new technology is an expense that improves your chances of making more revenue, investing a million dollars in a CEO bonus gives you the same CEO you had 10 years ago, but for a higher cost. And raising executive compensation to astronomical heights during a recession is just outrageous -- compensation should be performance-based, not reward those who lose.

This isn't good for America. And it's not because corporations are "evil." I support corporations, but they have to stop serving the interest of the executives who run it and go back to serving the interest of the corporations those executives are supposed to be representing.
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