Sounds good but, isn’t this putting the cart before the horse? And…this better be written very carefully because, there are some seasonal workers, among others working for the Trump family.
Cart before the horse?
Chart after chart illustrates increases in corporate profit while there is a continual decrease in the average American wage earner’s compensation.
CEOs continue to be well taken care of to the tune of up to 300% and more compared to the average employee.
How are we going to do that when, Wall Street demands increased corporate profit every quarter? A stock could declare increased profit quarter after quarter as investors eat up increased stock price. As soon as they declare an even number compared to the last or, worse yet profits drop…..so goes the stock.
What happens then? The CEO usually continues as is, and the person who makes an obscene amount of money looks at the expense sheet.
Wow! Look at the biggest expense! Freeze it, immediately. That gigantic expense is payroll. The people responsible for the day to day operations are the big negative ledger entry. Well, it is a quantity of people; The employees.
The CEO, and Senior Executive payroll entry is deemed a necessary expense. Really? At 300% or more of any one of those listed as a bother. The employee.
It becomes necessary to initiate a hiring freeze, and a wage containment at that level. Go ahead, and give that long time employee earning $10.00/hr. a 2.5% raise but, that’s it. Don’t overdo that hourly increase. That’s our biggest expense. It is the easiest expense to cut so, the way out is the easy way.
The necessary cuts are made the easy way. The CEO, and Senior Executives many times receive an easy way payroll reward.
The emphasis on corporate profits is so intensely high, and Senior Executive compensation is also as intense, and so far out of the economical climate where they live ‘high on the hog’ in any comparison to the average American employee, considered the big negative on the expense ledger.
Bottom line, The corporations and Senior Executives are over paid. Wall Street has to amend the way it rewards the stocks of companies who maintain a profit for the entire economic climate.
Wall Street must understand that corporations have more profit than deserved in recent years because, in this economic climate they have made their profits on the backs of their employees.
In other words, the only reason they have the profit they do is because, employees are not paid their fair share.
Wall Street, and individual companies must readjust to new expectations as the payroll expense becomes fairly compensated.
Calculations must be based on, all in on a fair deal.
What we don’t need is a new minimum wage. What we do need are companies well vested in those involved with its’ day to day operation.
Buy American, Hire American. I’ve dealt with the Hire American part of the decree.
Who is going to deal with Buy American? One of the pre-existing necessities would be factories who manufacture product right here at home. Factories with management that understand they were never due the obscene profits shown off on Wall Street today. They’re not the real profits. They are based on the current wages paid in this economic environment.
There needs to be common recognition that Senior Executives were never meant to be given the store while the ‘slaves’ labor.
President Trump has taken the easy way in declaring Buy American, Hire American with an Executive Order. Sounds good until you realize he’s done little to make Buy American, Hire American functional. That’s hard work.