Thursday, December 5, 2013

How Come Imnflation is So One Sided?

       Here's just a few facts of interest. Over the last thirty years or so, our productivity has increased by about 90%, but income for the average family has increased only 8%. Want to know more? Our economy has doubled in size but nearly all of the increase in wealth seems to have preferred a select few over our average family. Those select few, 10%, used to get about a third of the wealth, but now enjoy half of all income. The rest of us get to share the other half. I suppose we should be grateful for that much. Now if only we would forget about raising the minimum wage, that divide can continue.
       Look at the difference between thirty years ago when it comes to CEO income compared to average worker income. CEOs used to get about 20 to 30 times what the average workers got. Nowadays CEOs get 273 times what those same average workers make. So how come this enormous inflation works for CEOs but not for average workers? It's not that workers make so much less, they still make about the same. What happened is CEO pay increased to unimaginable heights. How come? I think it's because CEOs have closer associations with the folks who dole out the money. But the average guy doesn't belong to the same country clubs. By the way, all these facts were mentioned in an editorial by Charles M. Blow in the New York Times today.
       But here's the thing, if we remain on the current course, pretty soon that top 10% will be getting 75% and then 90 % and then probably meet their final goal of 100%. At which point, it will be nearly impossible to determine the number of times a CEO's income will compare to the drones, oops, I mean workers. Seriously, at some point those drones (workers) are gonna get fed up with leftovers and take everything away from the 10%ers. Check your history. It's happened in many societies throughout the history of human social groups. The majority at some point will always demand a fair share. And the 10%ers won't be the ones who decide what fair is.

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