Thursday, January 10, 2013

$20 Everyday McValue menu

It used to bother me that CEOs made lot$ of money.  "They don't deserve that!"  "How much money does one man deserve?"  "He should pay more taxes!".  Sadly, this is what I used to say with my beloved Pro-Union Grandpa shaking his head in the background.  How silly of me.  The reasons CEOs get paid what they get paid is because they take on huge responsibility leading global companies.  This is not the same as the CEOs of Bankster companies that get bailed out by the government *cough AIG, B of A, GM * cough.  Those CEOs don't deserve the chairs they sit in.

Which brings us to a Bloomberg article that claims the whoa is me mantra of a lower wage earner.  I am not attacking this man's character.  He appears to work hard.  But his wage is determined by the marginal revenue product of his labor skills.  See Labor follows the law of supply and demand just like any other aspect of the economy.  This worker's skills are easily replaceable with another worker, thus his wages are lower.  I like these quotes:

Johnson would need about a million hours of work -- or more than a century on the clock -- to earn the $8.75 million that McDonald’s, based in the Chicago suburb of Oak Brook, paid then- CEO Jim Skinner last year.
And he would need two million hours of work to double the CEOs salary!  This is great math.  Here is what I propose, pay everyone equal amount.  From the french fry cook to the CEO.  See how long the company stays in business, and what people want to buy their shares.

Employers are doing more to keep workers from organizing, said Dorothy Sue Cobble, labor professor and historian at Rutgers University in New Jersey. “The numbers of people who get fired for joining a union or trying to organize one has increased dramatically over the last 30 years,” she said.

There is a reason.  Business' don't want to deal with Unions.  They do not (in just about every case) add value to a business or shareholders.

If McDonald's paid its lowest wage earners the same as the CEO, we would all be enjoying the $20 Everyday McValue menu, not the $1 menu that is currently being assaulted by our fearsome President of the Federal Reserve, Mr. Ben "Hellicopter" Bernanke

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