General Discussion
In reply to the discussion: This Chart Should Tell You Why The Rich Are Trying To Kill Off Unions [View all]Trajan
(19,089 posts)And THAT is where our battle lies ..... Giving workers a larger slice of the pie ....
And that slice doesnt necessarily need come directly from CEO pay ... I am not sure whether you can expect to extract CEO pay, and have enough to increase worker wages enough to make an impact ...
Something else is in the mix here - Investors ....
Investors need to realize: It is in their best interest to make sure the marketplace is 'seeded' with income so workers and families have enough wealth to buy their products .... The current system is degenerate, and will unwind until all workers are impoverished ... They need to recognize that they themselves cannot sustain a vibrant economy, and they NEED the lower and middle classes to maintain robust purchasing in order to maintain their own wealth ....
Two points I would add:
1) Stimulus was pumped into the economy in order to 'prime the pump' to help stimulate economic activity - That activity was required because lower and middle class workers feared spending their precious wealth in a down economy ... They cant squander rent money on frivolous purchases, like new washing machines, new cars, etc .... Baby needs shoes? .. Goodwill has them ....
2) The free and easy credit policies in the 90's help mask the paltry income increases by mortgaging home value as a substitute for income wealth ..... Once the credit bubble burst: real family income revealed just how weak it actually was .... Without a credit card to buy a fancy computer; families realized they didnt actually HAVE money enough to buy one, or a car, or durable goods in general.
Corporations object to stimulus spending ? ... fine - PAY FAIR WAGES, and stimulus spending will not be required ... Nor will cheap and easy credit be necessary .... with REAL DECENT wages; families can buy what that wish .... Dell/Ford/Best Buy/Nordstrom's/etc sells more, and producers produce more to meet sales .... EVERYBODY wins ....
Poor wages kill jobs and businesses ..... Without decent wages - small business cannot prosper as their marketplace dries up ....