raising the minimum wage is good economics

CEO compensation these days is roughly $7,000 an hour (that is, assuming a 40-hour workweek). In fact, CEO-to-average worker pay has increased by a factor of 15 from the 1960s ratio of 20 to 1 to the present whopping 300 to 1. But in some companies it is astronomical. At Chipotle the ratio is 1,522 to 1. Yes, you read it right. That is not a typo. In some firms, the CEO makes nearly 2,000 times as much as the average worker. At Walmart the ratio is 1,133. Do these CEOs deserve their millions? Not by a long shot. Take the CEO of Coca Cola company. He still pockets $25 million. His rival, the CEO of Pepsico writes a check to himself for $22 million. Yet, I have not heard any of the Republican presidential hopefuls suggest that these millions are hurting our exports. A pittance to the coolies hurts the economy, but the millions to their bosses are quite all right.

https://www.pbs.org/newshour/economy/why-raising-the-minimum-wage-is-good-economics

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CrazyMusicLover · 31-35

I don't understand what makes you think that raising minimum wage won't raise the cost of work as well, which will raise the prices of goods and services for everyone. Plus nobody guarantees all employers will actually start paying wages adequate to workers' knowledge and skills. The most probable scenario is that more employers will start to officially hire qualified workers on minimum wage and pay them the rest under the table, which makes them momentarily earn more but get low social insurance for the retirement pension later. Not every business is a big corporation spinning millions every month and this will mostly affect smaller businesses that often actually do it because it's their passion and want to bring something new to people. Higher minimum wage means having to pay higher social insurance and higher healthcare insurance every month.

LordShadowfire · 46-50, M

@CrazyMusicLover https://similarworlds.com/personality/idiots/5023817-There-sure-are-a-lot-of-people-around-here-defending

CrazyMusicLover · 31-35

@LordShadowfire What is your point?

LordShadowfire · 46-50, M

@CrazyMusicLover My point is there Sure are a lot of people defending the insanely high salaries of these rich CEOs. Your argument is literally that because rich people are sсumbаgs, we might as well step aside and let them keep ԁісkіng down poor people without any lube.

CrazyMusicLover · 31-35

@LordShadowfire Which part of

Not every business is a big corporation spinning millions every month and this will mostly affect smaller businesses that often actually do it because it's their passion and want to bring something new to people.

you don't understand?

Solely raising minimum wage won't solve the problem because there are just going to be more people with minimum wage and the corporations will just set the higher prices for the products they sell and services they provide to compensate for the money they will "lose" paying higher wages to their employees. It won't hurt CEOs of big corporations with enormous hierarchy with so called "shit jobs" with minimum wage on the bottom in the least. It will hurt CEOs of small businesses with a few employees like family businesses and self-employed freelancers who will have to pay higher social and healthcare insurance every month.

If there was a way to set a limit on the difference between the income of the CEO and the employees, that would be something else. But in practice, employers always try to find loopholes in how to pay their employees less and earn more.

LordShadowfire · 46-50, M

@CrazyMusicLover

If there was a way to set a limit on the difference between the income of the CEO and the employees, that would be something else. But in practice, employers always try to find loopholes in how to pay their employees less and earn more.

So because rich people are sсumbаgs, we might as well step aside and let them keep ԁісkіng down poor people without any lube.

CrazyMusicLover · 31-35

@LordShadowfire Well, the way would be to set up your own business, do your own thing and offer a new attractive product/service and if you succeed, offer fair pay for your employees but as I said, with raising cost of insurance and taxes it's hard to even start something. To say nothing of competing with big corporations..

LordShadowfire · 46-50, M

@CrazyMusicLover Since nobody wants to pass legislation that would affect big corporations, I agree.

basilfawlty89 · 36-40, M

@LordShadowfire @CrazyMusicLover or we could just turn the corporations and businesses into workers cooperatives and thereby it's democratically managed and workers receive their fair share without shareholders sitting on their arses and stealing the workers surplus value.

SatanBurger · 36-40, F

@LordShadowfire When I posted that quote from the article, my thinking is that if CEOs pay wasn't 7,000 a paycheck, companies could pay a decent minimum wage. It makes me wonder about money black holes like that.

I mean just add that up worldwide to the amount of money that they make. I don't really want to hear that they can't pay livable wages when the upper management makes enough money to get three expensive sports cars a year.

SatanBurger · 36-40, F

@basilfawlty89 I agree, that's the most logical solution. I've actually worked accidentally in places with no management and I prefer those than management. Employees develop their own systems and it often works. Then when those places get management, everything gets screwed in my opinion.

I'm not saying that those places wouldn't have structure but me and some employees have had such a flow that I even question why we have HR and bosses at all.

Aami1 · 26-30, F

@CrazyMusicLover Shhh, OP just wants to sound like a good person and reduce the complexity down to that of a 7 year old trying to work things out.

SatanBurger · 36-40, F

@Aami1 There's economists on both sides of the issue so obviously it's more complicated than even what you make it out to be. I don't think there's harm in talking about an obvious oversight on businesses behalf. I think it's nice to discuss obvious flaws in the system. It's weird how people like you get so so so defensive about discussing issues like it doesn't matter at all. I just find it odd as if it physically hurts you.

I'm sorry you feel insecure though and have to insult my intelligence. I know that comes from a place where you lack control in something. I'm sorry you feel that way about your life and I hope it gets better for you.

LordShadowfire · 46-50, M

@SatanBurger I don't hope that for her at all.

SatanBurger · 36-40, F

@LordShadowfire Yeah she sounds like some of the others on here that disagree with me, they just more want to start a fight. I'm posting this to illustrate a clear issue and it IS an issue regardless of whether they want it to be or not. I'm not understanding why they're finding such offense.