Sunday, March 14, 2004

CEO pay vs. worker pay CNBC had a nice discussion tonight on the inequality of CEO pay vs. average worker pay in the United States. No, sorry, it was not Kudlow and Kramer. It was a nice roundtable discussion that included Paul Krugman. The following chart is taken from Business Week. It displays average CEO compensation in each country as a multiple of average employee compensation for FY 2000. Country CEO Compensation Brazil 57 Venezuela 54 South Africa 51 Argentina 48 Malaysia 47 Mexico 45 Hong Kong 38 Singapore 37 Britain 25 Thailand 23 Australia 22 Netherlands 22 Canada 21 China (Shanghai) 21 Belgium 19 Italy 19 Spain 18 New Zealand 16 France 16 Taiwan 15 Sweden 14 Germany 11 South Korea 11 Switzerland 11 Japan 10 United States 531 This table is, of course, somewhat outdated. The discrepancy has become even larger in the past three years. CNBC displayed a chart on their show (I couldn't find it on their site) that had U.S. CEO's at 541 times average worker pay. That's approximately 10-12 times the discrepancy we find in notably inegalitarian countries like Brazil, Venezuela, Argentina and Mexico. As Krugman noted, CEO compensation in the United States was close to the British model up until 1980, when CEO pay first began to skyrocket. Before my dear reader brands me a communist, I should note that none of this is to say that American CEO's don't deserve it. Who could deny that they work 541 times harder, are 541 times more honest, and 541 times more competent at what they do than the average worker? 10:28:12 PM    comment [] ROFL 7:50:03 PM    comment [] Trivia Time! Can you identify what's wrong with the following excerpt from this weekend's USA Today article entitled "Greenspan sees jobs picking up" (an excerpt that was more or less repeated at the top of the Money section's cover page)? "In all likelihood, employment will begin to increase more quickly before long as output continues to expand," Greenspan said ... Greenspan used similar language last month to describe the job outlook. Since then, the Labor Department reported that businesses created just 21,000 jobs in February -- far below the 200,000-plus needed to reduce the 5.6% jobless rate. The nation has lost more than 2 million jobs since 2000. For a hint, click here. 5:40:38 PM    comment [] Faith-Based Missile Defense System The Daily Kos gives a good rundown of the whole missile defense flap (mentioned here previously). The 2005 FY budget requests $10.2 billion for missile defense and only $46 million for port security grants. One goes to the defense industry and the other goes for middle class jobs. One goes to pipe dreams against phantom threats and the other to real protection against terrorists and their ability to smuggle a nuclear bomb through an American port. One is based on faith, politics and money for cronies, the other on reality, security, and jobs. WWDT reminder: Have you printed out your helpful governmental chart on how to survive a nuclear attack yet? The second step (pictured above) is to go underground as quickly as possible. Ideally you have your own family fall-out shelter. Otherwise, try the basement, or if you don't have a basement, just start digging. 1:34:52 AM    comment [] Ashley visits the Pentagon Ashley Pearson of Lincoln, RI, wrote a letter to the President expressing her concern about the War on Terror -- a letter President Bush read to conclude his State of the Union address: Dear George W. Bush. If there's anything you know, I, Ashley Pearson, age 10, can do to help anyone, please send me a letter and tell me what I can do to save our country. P.S.: If you can send a letter to the troops, please put, "Ashley Pearson believes in you." She was rewarded this week with a visit to the Pentagon, where she was thanked publicly and given a standing ovation. "Ashley understands the importance of freedom, appreciates the strength of men and women who guard and protect us every day, and recognizes the responsibilities of citizenship," Rumsfeld said. [snip] During the question-and-answer session of the town hall meeting, Marine Maj. Jonathan Gackle offered more thanks on behalf of himself and many other men and women in uniform. "Ashley, we want to thank you for what you have done and what you have said in that letter to the president," he said. "And we believe in you, and we love you for being out there." And like Charlie visiting Willie Wonka, she got to bring family with her for a guided tour of the factory given by Donald Rumsfeld himself. (Photos here) Has he won a future recruit for the War on Terror? The girl said she also recognizes that, even with Saddam Hussein in custody, the war on terror goes on, and that she and her generation may some day have to step up to the plate to resume the fight against global terror. Ashley said she's considering joining the military when she grows up, "just to be there to help." Perhaps if she's special, she'll be able to join the men and women of the 303. 12:49:23 AM    comment []

© Copyright 2004 David V. Johnson. Last update: 4/2/04; 12:00:40 AM. This theme is based on the SoundWaves (blue) Manila theme.