Corporate greed has been killing the middle class for decades. Executives have been rewarding themselves with yearly million dollar plus bonuses while the true workers usually don’t see anything. Corporations have the desire to maximize their profits which they tend to pass on as a cost to their employees by reducing or simply eliminating benefits. Sometimes companies will move their operations overseas and pay pennies per hour to foreign workers just to squeeze out every dollar.
This type of practice is self-destructive and hurts the economy. When the middle class is broke and can no longer purchase essential items, that in turn hurts businesses that rely on that source of income. Having corporations pay their fair share makes economic sense and ensures stability in the country.
When the banks were bailed out of a financial crisis in late 2008 with taxpayer money, they turned some of that into bonuses for the very people who caused it. Some of the money was allocated to lower level employees, which they claimed was to retain them so they wouldn’t leave the company and go to competitors. However, a large amount of the cash was given to execs simply due to greed.
This greed has increased the gap between regular workers and executives. Growth in pay has slowed tremendously for the middle class, while the people at the top continue to reward themselves with multi million dollar bonuses. Logically speaking, the middle class does most of the work so shouldn’t they reap better rewards? Sadly that is not how it works and there are many excuses given to why.
A common excuse is that the rich are job creators since they are the ones who employ the people who do the work for them. There are many exceptions to that however, like start-ups, family businesses, governmental jobs, and social programs to help people. These exist without the rich leaders forming companies themselves.
There have been laws introduced in the US and other countries that limit how much a CEO can make over their normal employees. These fail due to lobbying that they will end up hurting the businesses and a variety of reasons given range from leaving the country to shutting down completely.
When a single person in a company makes more in a day than nearly any other worker does in a year, that is a huge problem that needs addressed. It can be spun however they choose, but it is simply stupid and greedy. CEO’s do deserve to be paid more, but not the rate at what is happening currently.
- America’s Middle Class Is Getting Squeezed Out
- Bankers Reaped Lavish Bonuses During Bailouts
- $1.6B Of Bank Bailout Went To Execs
- Maximum Wage! How much CEOs earn an hour