“Working folks shouldn’t have to wait year after year for the minimum wage to go up, while CEO pay has never been higher. So here’s an idea that Governor Romney and I actually agreed on last year: let’s tie the minimum wage to the cost of living, so it finally becomes a wage you can live on.” — PRESIDENT OBAMA
In his State of the Union address last night, President Obama surprised Washington with a bold plan to raise the federal minimum wage, arguing that “in the wealthiest nation on Earth, no one who works full-time should have to live in poverty.”
“Today, a full-time worker making the minimum wage earns $14,500 a year. Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line. That’s wrong.”
His proposal would guarantee workers at least $9.00 an hour by 2015—a 25 percent increase over the current $7.25—and index the minimum to inflation so that wages grow in tandem with rising prices. That would allow a full-time worker making the minimum wage to earn $18,720 a year—more than enough to support a family of three, according to the government’s official poverty guidelines.
CEOs make 380 times what the average worker receives in pay. Imagine the comparison to minimum wage workers: 2011 average CEO pay / compensation: $12,935,475 — average American worker pay: $34,053.
AFL-CIO: The ratio of CEO-to-worker pay between CEOs of the S&P 500 Index companies and U.S. workers widened to 380 times in 2011 from 343 times in 2010. Back in 1980, the average large company CEO only received 42 times the average worker’s pay.
CEOs supposedly deserve all this money for increasing shareholder value. However, while the average CEO pay increased 13.9 percent at S&P 500 Index companies in 2011, the S&P 500 Index ended the year at the same level as it started.
…In 2011, average wages increased just 2.8 percent and average worker pay totaled $34,053.