Minimum wage vs. CEO pay: things that never increase vs. things that increase exponentially

“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.

via benjaminlandy

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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.[2] Back in 1980, the average large company CEO only received 42 times the average worker’s pay.[3]

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.[4]

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4 thoughts on “Minimum wage vs. CEO pay: things that never increase vs. things that increase exponentially

  1. Min.wage in Ontario Canada is $10.25.
    Do you know how f-ing hard it is to pay $82 a day to someone who never worked before?

  2. if you did a little research you would find that virtually every study on raising the minimum wage destroys jobs and businesses. the minimum wage has always been and will always be targeted to starter employees, such as teenagers and immigrants, summer jobs (college students) and secondary household earners (second incomes under the same roof). these jobs are almost always in highly competitive business climates where the profit margin is razor thin and any increase in costs results in people going out of business. minimum wage was never and will never support a family or an individual. to make that link is to be dishonest and irrelevant.

    • If a business owner can’t afford to pay a worker minimum wage to do the work that makes his business run he has a poor business model or management. And if the minimum wage is raised for everyone equally in a ‘competitive business climate’ it wouldn’t make a difference between company A or company B since they both will see the identical increase in cost. Also if the profit margin is “razor thin” in these minimum wage industries, (fast food, big box retail) why are companies like Wal*Mart, McDonalds, etc. able to flourish into billion dollar global conglomerates?

  3. and why in the world would you use a labor union as a source? talk about a conflict of interest! labor union wages are directly tied to minimum wage levels. whenever a labor union talks a city, county, state or country into raising the minimum wage, it automatically raises every worker’s pay and therefore every monthly union dues payment. you need to use sources and studies that are completely independent.

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