Everyone would have more money to spend, and that would improve sales for business.
Right now, we're hearing that Walmart is experiencing slower sales, and that's because after decades of barely making it, everyone is now tapped out. They just don't have anything extra to spend, so they buy the necessities, and even then some do without because they can't afford it.
These CEO's are very short sighted, they don't seem to get this basic fact of economics. It would take a few months for them to catch up, but they would indeed catch up.
I'm sick and tired of hearing how these CEO's must be paid huge salaries, because the company couldn't get good people otherwise. Well, if they can't understand how our consumer oriented economy works, they aren't good and shouldn't be in that position.
Over the last year or so, I've read about small businesses that pay their employees well, provide good health care and benefits for them, and guess what--they're making a lot of money! Happy employees work more efficiently, and take the extra effort to improve bottom line profits for their employers, because they know they are appreciated and they want the company to do well.
You walk into a Walmart, and their employees aren't happy, you can see it in their faces. They have a dead end, low wage, no benefit, crap job and they know it. And Walmart is going to get less than 100% from most of them, because they're stressed out about how they're going to pay bills, put food on the table, get braces for the kid, etc. You can't perform at your best carrying around those burdens.
Years ago, I had one of the company partners ask me why we didn't have better people working for us. I asked him if he'd seen the payroll budget, and he hadn't. I showed him how much was budgeted for payroll, benefits, etc., and told him we basically had what we deserved.
In his region, payroll was increased and we were able to hire better people. Profits improved. Instead of having people who barely got by doing their job, we had people who excelled at their jobs.
Congress makes about $174,000 a year, and most of them are millionaires. How does that work? It's way past time to get some average Americans in Congress who understand what it's really like to try to get by these days. When that happens, things might get better for everyone. The way it is now, Congress for the most part is so out of touch and compromised they may as well live on another planet.
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