CEO Pay vs. Worker's Salaries, Gun Violence, Problems at Veterans Affairs and a Naked Girl on a Rug

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JL
                                                         

CEO Pay and Workers' Raises

Why are the CEOs of big corporations paid so much?  The average CEO now makes 257 times the national average salary!  An Associated Press article by Josh Boak that recently appeared in the Palm Beach Post suggested four reasons for their being so well compensated.

Evaluating CEO pay ain't simple

First, much of their pay is in their company’s stock, which is taxed more favorably than just their salary.  Secondly, there is pressure on companies to pay their CEOs just as much, if not more, than the CEOs of competing, peer, businesses.  And of course, the other guy won’t stand for this, so he gets a raise too. And around it goes.  Third, some companies want to elevate their CEOs to the status of the “superstars” found in the sports world and show business, a level necessary to compete in global markets.  So they pay them like “superstars.”  And finally, Boards of Directors are traditionally friendly to CEOs and will defer to their wishes and supposedly greater knowledge of the company’s operations, and of course, CEOs are influential in the selection of Directors, some of whom were or are CEOs themselves.

On the other side of the coin, working people are finding it harder and harder to even get a raise.  The article offers four reasons for this as well.

First, technological advances and computerization have reduced the number of jobs available, so there is no need to raise salaries so long as there are job applicants at the door who would be glad to take the job, regardless of what it pays.  Secondly, unions, which used to look out for the welfare of their members, have shrunk in size and the ones that remain ain’t what they used to be.  Third, outsourcing of many jobs to low wage countries has a depressing effect on wages paid in the United States.  And finally, over the past five years, inflation has averaged an insignificant 1.6% annually.  This has removed what has always been a major factor in justifying salary increases.

In dealing with income inequality, all of this has to be addressed. 

First, in regard to the pay of CEOs, there is little that government regulation can do other than look more carefully into the perks that CEOs get, including stock in their company.  Any other changes in that area must come from any stockholders and Directors who might be interested in making changes, and if the company is making money, that will not occur.  If the company is not doing well, of course, there won’t be a problem since the CEO will probably then be fired.  If the Board then decides that the solution would be to pay a new CEO significantly more than the old one was making, the problem will persist.

On the other side of the coin, in dealing with wages which actually are decreasing when the present value of the dollar is factored in, 

(1) we can hope that advances in technology may over time develop new jobs with higher wages, 

(2) we can hope that inflation will remain under control because salary increases resulting from runaway inflation would be meaningless but most significantly, 

(3) the outsourcing of jobs to low wage countries must stop.  There are simple ways to do this. Corporate tax rates should include a sliding scale reflecting the degree which a business’ profits result from outsourced jobs. This should make it unprofitable for any American company to manufacture their products out of the country, or to outsource their service functions.  Corporations which do everything with American labor within the United States would pay the lowest corporate tax rate in the world, and should thrive.  Those that do not are welcome to be taxed out of business.  Finally, all taxation should be based on a company’s total profit picture, including profits resulting from its overseas-based operation.  The Cayman Islands, the Bahamas and Switzerland should be for vacations and not offshore shells used to avoid taxation.  Instituting these measures would solve the problem of jobs, and actually provide salary increases for working people.  True, prices for much of what we buy may increase but that is the price which must be paid to save our economy.

The imports carried on container ships represent jobs lost in this country

And if such a plan would make American-made products non-competitive with products brought in from overseas, we should restrict the amount of such products which are imported by limiting the dollar amount of such imports from a given country to no more than the dollar amount of American-made exports sold to that country.   

While "free trade" is good for the world's economy, it should always take place on a two way street, with equal traffic flowing in both directions.  Otherwise, "free trade" is not "free" but actually very costly to the American working person.  

 

If we do all of this, when my 2008 Japanese car wears out, I will purchase an American-made vehicle!
Jack Lippman



                                                          

Your Help is Needed if We are Ever to Control Gun Violence

www.everytown.org is a website where the evils made possible by the easy availability in this country of weapons are clearly documented.  A follower of this blog suggested that we help spread the word and we are glad to do so.

Right now, everytown.org is urging people to send a postal card to their Congressmen and Governors (their website makes it easy for you to do so online) at the request of Richard Martinez, whose son was one of those killed last week in the shootings in Santa Barbara, CA.  The site quotes Martinez as saying: “Today, I'm going to ask every person I can find to send a postcard to every politician they can think of with three words on it: Not One More. People are looking for something to do. I'm asking people to stand up for something. Enough is enough."

Among the kinds of information provided on www.everytown.org is the fact that

Yet legislators in state capitals and in Washington are still afraid that pushing hard for gun control measures such as thorough background checks might cost them their jobs due to the power of the NRA-led gun manufacturing lobby.  The Second Amendment, despite its heinous misinterpretation by the Supreme Court, was never intended to justify the carnage sweeping America.  Check out the information on www.everytown.org.  And honor the memory of his son by following Richard Martinez’ request that you send that post card.  Pass on the message: “Not One More.”  Today.  Right Now!  Visit the web site to send your card.

JL

                                                       


 The VA and Bureaucracy

VA Headquarters in Washington

The expanding bad news about what has been going on at the Department of Veterans Affairs is nothing new.  The VA suffers from the ills which come with chronic bureaucracy.  Almost all public organizations are prone to this malady.  Private ones are less susceptible to it because a profit motive is involved there and failure to perform is usually not tolerated once discovered.

Government bureaucrats, particularly those at the senior higher salaried "career" levels, are usually very comfortable and self-assured in what they do.  Unless they steal or fail to bathe, their job is usually a lifetime one.  The salary, once inferior to what they might earn in a private sector job, is now relatively generous, as are their health and retirement plans.  Their superiors, and those who should be checking up on them, are in the same boat and generally, there is a collegial attitude among them.  “You watch my backside and I’ll watch yours, fellow Bureaucrat.”  The benefits of this way of doing business is reflected in the comfortable standard of living and numerous cultural benefits available for those of these senior people fortunate enough to live in the Washington, DC area.

 

Kennedy Center in Washington

  Phoenix VA Hospital

The problem comes to a head when an agency like the VA fails to perform and its bureaucracy puts its own preservation ahead of its mission.  That bears repeating.  The problem comes to a head when an agency like the VA fails to perform and its bureaucracy puts its own preservation ahead of its mission.

And when that mission involves providing  medical care for veterans, failure to do so is far more serious than something like a delay in processing an application for a research grant or resolving an issue with a tax return.  That's what happened at those VA hospitals run by the Veterans Health Administration, part of the Department of Veterans Affairs, which were unable to adequately provide service for all of the veterans coming to them.  They put the bureaucracy ahead of the mission.  They hid the problem in order to cover their asses. (See picture of Naked Girl on a Rug further down on this posting in which she doesn't cover her ass.)




Even at a lower level, when folks have to interact with "bureaucrats" face to face, one can sometimes sense the complacency of many of these people. Note the attitude of the career people behind the counter at Motor Vehicle offices or at almost any government agency.  And this smugness, masked with scripted false smiles, extends into their back offices and upward through their hierarchy.  (The Armed Forces also suffer from this malady as well, but it is universally excusable there because they are involved in providing national security and putting their lives on the line.)  

You saw this attitude in the demeanor of the Department of Veterans Affairs officials called to testify before Congressional committees.  Supposed "servants of the people" behaved as if their exalted position put them on a level far removed from that of ordinary mortals, where they manifested wonderment at their even being questioned as to what they do.  Outrage on the part of some of the Congressmen on the committee was very understandable.

 

Of course, most government employees (even those at the VA) are dedicated to their jobs and perform them quite well.  There are those, however, who seem to feel so comfortable in their positions that they "let things slide" as they work their way toward retirement. And although the existing oversight process involving inspector generals and legislators usually works, it does so very slowly.   

The situation at the VA must be remedied, and quickly.   Appointment of a replacement for Secretary Shinseki is just the first step.  In any solution, there must be greater emphasis on a level of accountability which must extend far beyond lip service, and such emphasis should be extended to other Government agencies as well.  The question of whether the Department of Veterans Affairs, particularly in regard to its medical functions, is adequately funded must be addressed.  That may be behind the reason for those long waiting lists in the first place.

GOP leaders (such as Paul Ryan) should not politicize this issue.  Criticism of the Department of Veterans Affairs was bipartisan and the President did "dump" General Shinseki from his job.

The alternative to this is to succumb to those critics of government who will not hesitate to use what has occurred at the VA as justification to try to broadly reduce the role of government in our lives and privatize as many government functions as possible.  Such politicization of the problem at the VA would not be a good thing.

JL


                                                                            

Naked Girl on a Rug                                                  

The "Blog Posting Alert" I sent out announcing this posting promised a picture of a"Naked Girl on a Rug."  Of course, we wouldn't want to disappoint anyone, but it was done just to see if it would increase the number of "hits" on the blog.  Here's the picture.

 
JL


                                                         




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