Corporate Executives Behaving Badly.

OMAHA, NE – Some of the most anti-middle class aspects of capitalism are the people in charge of our largest corporations.  The same people who only care about themselves, their salary and the dividends for the stock holders.  When will we start developing a corporate culture that cares about the people doing the labor?   The same people who do the work are also the same people doing the great majority of consuming. We have a minimum wage because we know companies would pay our American workers even less if given the chance.  Perhaps it is time to pass a maximum wage law for those who gives themselves and others ridiculous salaries and pay raises at the detriment of their own workers, their own company and our nation’s economy.

Let’s take for example, Hostess Brands  a large corporation now closing its doors. Company executives blame the Union, even though the Union took a pay cut. But, the companies executives took anywhere from 80% to 300% raises in their salaries.  Who bankrupted the Hostess maker, again? It sure wasn’t the Union.  They were willing to take pay cuts and in fact had already received pay cuts, while the executives were not willing to sacrifice in the same manner to save their company nor their workers.

In recent years, during tougher economic times, there has been a chilling trend of CEO’s receiving ridiculously high rates of pay while their employees receive pay cuts, or loose their jobs when the company crashes. At Caterpillar, they froze workers’ pay and boosted the CEO’s pay to a ridiculous $17 million. Perhaps it is time to create a maximum wage law and actually give all that wealth a real chance at “trickling down”.

As the President and Congress fight over the Fiscal Cliff, various CEO’s of our nation’s largest corporations are pushing their agenda on a budget deficit their corporate welfare culture helped create in the first place. These rich corporations collectively bargained to have their tax rate reduced to “ZERO” and now they want to dictate how a budget deficit they helped create will be solved at taxpayers expense. They want the government to cut Social Security, Medicare and Medicaid while they continue take corporate welfare funds from the government.

Perhaps it is time to pass laws or incentives at the Federal level to steer companies into becoming more like Costco and other companies with strong, pro-employee models that still ensure a sounds profitable base.

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Editor for Corporations Behaving Badly.

4 Responses to Corporate Executives Behaving Badly.

  1. Robert says:

    Have you not done studies? Over the past 50-60 years or more, our congress has passed 1000s of bills/regulations a year. During that time our government has grown and become more socialist. At this same rate the middle class has shrunk, we’ve become a government of big business, health care cost have gone up along with health ins, and the amount of people who depend on the government keeps increasing. The problem doesn’t lie with corporations alone, but the congressmen who pass regulations helping big business. Corporations have lobbyist. These bills are past because of these lobbyist. Yet now we have a “do nothing congress” which in some ways I am grateful for. They’re not caving into these regulations and bills that stifle small businesses.
    Government needs to only step in when corporations abuse their power, get too large, or hurt people. Today though, our government says they are against these type of corporations, but they’re not. We believe these politicians, but they pass the bills that enable these companies to have a stronghold on their field of business, hinder competition, and allows these corporations to make more money for their CEOs.
    Too much socialism such as in the USSR (yes it was socialism to the extreme and not communist by definition), and the middle class shrinks more. In the USSR they had only the very very wealthy politicians, and lower class. There was no middle. We need a government that knows how to balance it, not corrupt it. It was never capitalism or socialism that was bad, but only when bad people get into power. They can make anything bad.
    We argue it’s big businesses and the 1% that needs to pay more of “their share” and never consider that if we did our government would still be and go further into debt. You could tax each of the 1% 100% of everything they make over 1 million a year, and even then our government would have a deficit. Out government needs to spend less, and remove the laws they have passed that helps the big companies why hurting an individual from creating a small business that one day could compete.
    I’d rather fix capitalism than go to socialism, but if we’re going to be socialist realize it has the same evils if the people in power do it for power. Look up the Curley Effect. That was someone who wanted to stay in power under the promise of helping poor, but what he did was use it to buy votes, chase wealthy away, and in the end there wasn’t anything left to help people.

    • Ken R says:

      Actually, the articles links to news articles or studies. The links are embedded in the articles, thank you very much.

    • Ken R says:

      First of all, the government doing it jobs of regulating commerce doesn’t mean it is becoming more socialist. The fact that the USSR’s leaders controlled everything made them a dictatorship. They were socialist in name only. There is something called Democratic Socialism, see Europe’s Western Democracies for that. The cost of healthcare has gone up because not everyone has the money to pay for the medical care they need, so hospitals go unpaid, raising their prices to make up for the losses. I get the fact that the problem isn’t with corporations alone, that’s why I advocate electing politicians who support what I believe. Most of them are Democrats. I don’t just believe that the rich should pay their fair share in income taxes, I also believe we can raise enough revenue by making the rich pay a wall street transaction tax as well. We could raise $350 billion with a wall street transaction tax which would cut our $700 billion deficit in half. Making the rich pay their fair share and cutting the defense budget would give us a surplus once again. But Republicans block every effort to raise revenues, while Democrats would at least agree to cuts if the GOP would just agree to a revenue increase. Unfortunately our President is black and the GOP can’t handle that. Government only needs to step in when corporations are abusing their power, get too large, or hurt people? Hello! Wake the hell up! They are abusing their power! They are too large! They are hurting people! Cutting pay and hours is hurting people! You’d rather fix capitalism, than go to socialism? Raising the minimum wage, capping executive pay, reversing Citizens United is FIXING CAPITALISM, IT IS NOT SOCIALIST!

  2. Pingback: Time to Balance the Ratio of Executive Pay with Minimum Wage Earners | Progressive Oasis

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