Economics Lesson: CEO pay vs. workers' pay

[jakobeckert]

Thank you for this posting, can I have the sources/the page graph of CEO salary's graph please.

[Ralphdraw3]

@Rexanglorum It is wrong - our societies money and resources are going to the wrong place - people who sit at desks in New York who shuffle money and paper around. Today's CEO makes tons of money whether he/she succeeds or fails (failure is rewarded by lucrative retirement packages and golden parachutes - disgusting).

Our manufacturing base has been destroyed - the middle class is being ruined - the national government is deep in debt as are many states. We have plutocracy of the rich.

[Ralphdraw3]

@Rexanglorum 1) all those people on Wall Street getting the big bonuses don't deserve it and haven't earned it 2) these people making huge salaries haven't invented anything, haven't founded a company, and aren't being productive, they are merely shuffling money around. 3) With these ultra-rich people in our society, we are creating a permanent aristocracy (much as there had been in Europe and other place) not healthy and not democratic.

[dukee155]

Well companies got bigger.

[Geschmolzen]

Another good example of how inflation (expansion of the money supply) transfers wealth from the bottom up

[Ralphdraw3]

We have had little or no inflation for the past decade.

[Geschmolzen]

Part 2 (I'm not sure if you got part 1) as I said inflation is not the rising of prices (that is a side effect) inflation is the creation of money out of thin air. I'll qoute John Keynes (who had nothing but contempt for the working class unlike the two of us) "By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily;....

[Ralphdraw3]

Most economists measure inflation by the increase in prices

[Geschmolzen]

part 3

Because the bank wasn't as desperate to dump its asset to raise capital it can hold out for a higher price and ultimately lets say it makes $120,000 (notice the price of the house still dropped from its previous high) $20,000 was just transfered from the debtor to the creditor.

[Geschmolzen]

Part 3

...and, while the process impoverishes many, it actually enriches some. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose".

Inflation passes wealth from those who consume most of their income and those who save to those who recieve the new money first.

[ApostolypseNow]

I am just kidding Ralph. Thanks for the video. I agree with you 100% It is disgusting, and it kind of reminds me of how the Queen in England is still allowed to basically have more wealth than anyone in the world (She is the real richest person in the world bar none), when we supposedly now live in a civilized and modern world of Republics and Democracy. What a joke this country has become. The Queen should also be stripped of all her wealth since it was obtained illegally.

[Ralphdraw3]

I think what has transferred money up to the top incomes are the huge increases in executive compensation and tax cuts for the very wealthy

[s3tt4h]

I like 2 see the actual contract language of large bank executive employment contracts, circa 2008 which says something to the effect, "Bank execs are entitled to bonus award in the following circumstances, a) during good

years, b) and bad, c) when there is a declared crisis, d) when the company is failing or in danger of receivership, e) when the company is extremely undercapitalized or e) in danger of undercapitalization, f) at tax payer expense, etc ... The language does not exist imo.

[Ralphdraw3]

Bank of America, Like SEC, Also Wants Jury Trial in Bonus Suit

Bloomberg - David Glovin - ‎Oct 9, 2009‎

3 claiming it misled investors about bonus payments while buying Merrill Lynch. On the day the suit was filed, the two sides announced a $33 million ...

[davebeal65]

So, since you aren't and can't run that company, you think the company should pay you more than you deserve, "because you deserve more". We don't get paid what we deserve we get paid what we earn. If you want to make more money, make decisions that make the company more money. Then you'll get promoted and make more money. Repeat process until you are making $20 million.

[Ralphdraw3]

Are you running a company?? (LOL)

[s3tt4h]

@davebeal65 please post the actual contract language of large bank employment contracts, circa 2008 which says something to the effect, "Bank execs are entitled to bonus award in the following circumstances, a) during good years, b) and bad, c) when there is a declared crisis, d) when company is failing or in danger of receivership, e) when the company is extremely undercapitalized or in danger of undercapitalization, f) at tax payer expense, etc ... The language does not exist imo.

[davebeal65]

The reason a CEO make the multiple of money is because he makes decisions that are that many times more important than the worker. The worker say's hey it's beer thirty, I'm going home. It's not my problem, I'm off.

The CEO has to live the job, and he is accountable 24 hours a day. If the worker fucks up it's just another Piece of crap GM car. If the Ceo screws up, none of you have a job. What company are you running where it's a different example? And how much income did you generate?

[lastdaysguitar]

Dave, as someone who BOTH owned my own company AND earned a six figure income working in a 3.2 billion dollar company (and saw CEO's come and go) I can tell you this:

Unlike your implication CEO's often do NOT have either company loyalty or work ethic - MANY just have some great connections.

CEO's often are clueless as to HOW to run their companies and delegate the actual decisions/work.

The attitude of greed vs. worth is the reason America is losing ground failing fast.

Good video Ralph.

[Ralphdraw3]

gone..

[erkd1]

"An imbalance between rich and poor is the oldest and most fatal ailment of all republics"

~Plato

Great vid Ralphdraw3, 5 stars

[Ralphdraw3]

make another account;

deleted

[Ralphdraw3]

try to make A-N-Y icon... LOL

[TNC420EatsShit]

Are you fucking kidding me? When people make over $20 million a year, they're working harder than you could ever imagine. What's the point of them working their ass off if they have dumb fuck Coors Light drinking blue collar pieces of shit like you benefiting from it? Learn how to make money asshole, and you just might earn $20 million a year before you die. You worthless fuck.

[kentuckykevin]

Your inability to articulate your point or speak intelligently regarding this matter with out using an expletive, demonstrates your immense ignorance. Pick up a dictionary or thesaurus and memorize some five letter plus words so your prepared the next time you feel loquacious or have the desire to demagogue.

[kentuckykevin]

Your inability to articulate your point or speak intelligently regarding this matter with out using an expletive, demonstrates your immense ignorance. Pick up a dictionary or thesaurus and memorize some five letter plus words so your prepared the next time you feel loquacious or have the desire to demagogue.

[Ralphdraw3]

icon goes too laziness and ignorance, dummy...

[ubuibiok]

1980 climb = S&L Junk Bounds and Bank Failure, the Dip is Regulation then the next Climb is CDS after the fall of ENRON .

Most investor go for the up Value, reinforced by the ever changing work force in the company. I always use to go for the Divined Yield that would recover my investment expenses in 10 years or less. I wish that were true Today, but it's not, If you have zero influence in the company, then your gambling and the House wins. The best stocks to have are not publicly traded

[justl00king69]

The reason there isn't a large public outrage over this is because the economy can't afford it. Let's talk in 10 years, if the economy has been balanced again you might hear: "There was xx article in xx, xx and xx newspaper xx years ago that showed this". I've seen it so often it's ridiculous. Then when it happens, and a large institution gets the ball rolling, only 'then' will people start caring because others initiated it. But that's a different topic.

[KamikazeKoscki]

who don't want to go along with all the corruption. NWO is here, Nazi days are back, we are in serious trouble.

[KamikazeKoscki]

Excellent Graph! My CEO was making 5 billion and NO workers compensation then I was having to spend my own money on lawyers & health care, losing my home, 401K, pension, everything. Our justice system is corrupt, too many republicans judges sabotaging cases. I still have been in court 7 years now. It's disgusting, why so many judges are siding with corrupt corruption. My first appeal cost me $50,000 and now I have to pay another 50,000. Rothchilds with the help of CIA & FBI are killing people

[Boomer1949]

What the industry demands is that the CEO increase the stock price, doesn't matter how its done, cut workers, make workers work more hours, cut pay or benifits, anything to make it look like the co is making a profit, quarter after quarter. The stock market has driven this economy off the cliff.

[qanazir]

Is the value of the CEO's work really that much greater?

It seems as if they are just exploiting their position to grab all the money they can get their hands on.

[WadeBlazingame34]

qanazir: That's precisely what's going on. They're looting the value out of our businesses. They should be in jail.

[Boomer1949]

I think they do care they are being ripped off but with the conditioning that has been put into place, with Temp workers being hired and your fired, or closing the place down and shipping your job off shore, no one wanted to rock the boat too hard or complain too loudly. Of course now when I hear of some big ass place going under, I don't cry too hard for the CEO and I know that somewhere that worker will find a way to make a living..not so with the CEO.

[Ralphdraw3]

I am amazed that there isn't more outrage over this. Most of these CEO's didn't found the company or invent a new product - they are are just carrying on the business. They aren't Henry Ford or Thomas Edison or Alexander Graham Bell etc..

[justl00king69]

The outrage exists on a global scale. It always has. Which blue collar does not ever watch his boss (if they ever even get to see him/her) in despise when they are working hard, and see them take 2 hour lunch breaks sipping champagne or whatnot while knowing they get paid more a day than they do a month at times.. But then there's the catch, what are they supposed to do about it that does not endanger their job?

[Ralphdraw3]

I think that marginal tax rates at the upper levels ought to be raised again.

Say someone making over $20 million a year should pay at a tax rate of 40% or so.

[justl00king69]

Sounds like a good idea. But I doubt it will ever happen. It's the people making this kind of money that have the power to make or break others' political careers. That's one of the base principals leading to the saying 'Money makes the world go round' these days, imo.

[TNC420EatsShit]

Are you fucking kidding me? When people make over $20 million a year, they're working harder than you could ever imagine. What's the point of them working their ass off if they have dumb fuck Coors Light drinking blue collar pieces of shit like you benefiting from it? Learn how to make money asshole, and you just might earn $20 million a year before your die. You worthless fuck.

[s3tt4h]

@TNC420EatsShit the problem with over-paying execs during an economic crisis, is they become resentful and like the same asshats who ruin corporations and then fail to take responsibility for failure of those firms. ... put their hand out, like asshats, and expect to socialize corporate losses, or worse, put the debt burden on accidental tourists who happen by the bank or firm. Their debts become like a hot potato. They grow desperate, disconnected from reality of their own failure & resentful.