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Forget the minimum wage, what about a maximum
wage? Just how much is too much in an age where the rich get richer
faster than ever? Isn't it a public policy question if Michael
Eisner can still make $300 million in a year -- and then convert
his other $100 million of salary into $1,000 raise for every other
Disney employee?
The Wall Street Journal reports that executives
no longer feel a social stigma in making a salary 200 times that
of the average employee. Stockholders don't seem to mind either
(especially when markets keep going up and up and up). And surely
it's just a coincidence that as the percentage of union members
goes down, the wealth of upper managers skyrockets.
The problem with these worsening income disparities,
and the solutions to them, do not involve law or government or
some sort of idealistic socialist society. They involve psychology.
We have met the enemy and it's us -- our attitudes,
our education, our devolution from citizens to consumers.
The truth is out there.
Capitalism is not what it's cracked up to be.
***
History really could not be more clear on two
economic points.
First, free enterprise capitalism grows in
its abuses until checked by government, including child labor,
health and safety, a 40-hour week, a minimum wage, and environmental
protection. When you hear Republican politicians declare the government
needs to steer clear of business, take it with a grain of salt.
It's like a fish repudiating water.
Secondly, and perhaps more importantly, nothing
gets done, nothing, nothing at all, unless somebody makes money
off it. The greatest industrial explosion of the century (the
US in WWII) came about because FDR knew this fact, guaranteed
10 percent profits, and created an environment where the more
you worked, the more you made.
This is capitalism as I learned it in the hay
fields of Ohio. Forget overtime or time and a half -- the more
you worked, the more you made. Could not be more simple. It wasn't
until many years later that I found out there was an entire caste
of people who let their money make their money, and later still
that I learned the elite's way of doing things was favored under
law and taxes and government regulations.
Unfortunately for the liberal do-gooders of
the world, the rich are petulant in their ways, and every attempt
at confiscatory taxes, or luxury taxes, or whatever, has not worked
-- and has in fact, led to their discomfort trickling down (to
laid-off yacht builders, for instance). Wealth trickles down in
prosperity, as Reagan swore it would; hard times (as in inflation,
as nothing is worse to the rich than having the value of their
wealth go down) trickles down, too.
What makes this recent economic boom so interesting
is the fact prosperity isn't trickling down like it used to. But
don't get nostalgic for the good old days of Reagan; economists
say for the bottom 20 percent, incomes haven't improved since
Nixon.
***
Americans at the bottom of the economic pecking
order haven't received a raw deal as much as simple old sales
job. Working together for common gain sounds communistic or, down
here in the South, downright union-like. Be a cowboy capitalist
-- make your own deal. Be your own free agent. Cling to the opportunity
of greater reward; it's the same sales pitch that worked so well
for Christianity.
Now to liberals, the great equalizer is education.
This must be considered one of the greatest crocks of all time,
considering education is based on property taxes, which means
wealthy areas will always have better schools.
Any discussion of economic disparity nowadays
always carries a racial component, but I go back to two lines
from Warren Beatty's "Bulworth," a movie that I loved but that
was to hip-hop for mainsteam white America.
First, poor white folks have more in common
with black folks than rich white folks. Secondly, blacks moved
from the rural south to inner cities for jobs. They weren't great
jobs, but they were at least jobs, and black families and black
society held together while those jobs were available. Those jobs
evaporated; that problems followed is hardly a surprise. The folks
making the economic decisions don't live in the areas where the
consequences occur; safe in their gated communities, they continue
to make more money and continue to complain about the people who
aren't.
Final story to sum all this up. On the Delmarva
peninsula, it's hard to find a job worse than being a chicken
catcher (the folks who have to round up the escapees from trucks
and make sure they make it to the executioner processing line).
These people, making barely more than minimum wage, are trying
to form a union.
You can probably guess the response from Frank
Perdue, famous for his slogan "it takes a tough man to make a
tender chicken." Replace the chicken catchers with machines. Instead
of paying employees something closer to a living wage, he'd rather
pay (and I'm not making this up) nearly $1 million per machine.
Think about that the next time you buy a chicken.
If you let the rich get away with petulance, in terms of voting
with your dollars, you'll get what you deserve.
Money has replaced votes in the political arena,
which means we need to move our votes into the monetary arena.
Something the rich has known for a long time also works for the
poor.
Money talks.
***
G.L. Marshall does indeed believe that money
talks. It says goodbye.
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