Need vs Greed

In Greed We TrustLet us assume that Mr. Pedro Gonzalez, an average employee at McDonalds works a 40 hour week, 50 weeks per year for a total of 2000 hours. At $8.00 per hour his gross pay is $16,000.00 per year.

Meanwhile, his ultimate boss, the CEO, is paid somewhere around $10 Million per year, or $5000.00 for each of those same 2000 hours. But let’s recognize reality- most CEO’s work long hours some of the time, so let’s assume Mr. CEO puts in an additional 5-600 hours per year doing other stuff. He’s still up over $4000.00 per hour no matter how you cut it. If he worked 4000 hours a year, he’d still be making around $2500. per hour.

Mr. Gonzales and his fellow workers in the fast-food industry are organizing around the idea that they should be paid $15.00 per hour, an income that would allow them to enter the middle class – the backbone of any successful economy.

The fast-food execs are screaming that such a wage increase would mark the end of their business models, eviscerate the market and probably collapse world-wide economies. Indeed, it seems the sky would fall.

Let’s think about all this for a moment. Is there a soul on this earth worth $5000 per hour? Exactly where did this obscenity in remuneration come from? I recall an old expression; “There’s need and there’s greed”. Was this ever more true?

Let me suggest that if Mr. Gonzalez was paid $15.00 per hour and Mr. CEO took a cut all the way down to (say) $3000.00 per hour and then raised the price of a hamburger by 25 cents, the corporation would survive and indeed flourish. Thousands more middle-class families would be spreading their incomes over a wider market, millions more hamburgers would be sold, Mr. CEO would likely get his salary cut back in the form of a bonus and just possibly realize he had helped his country begin to renew itself.

Sounds like a win-win to me. But then I remember the need-greed mantra; given past performance I’m guessing that greed will trump need, and the hell to Mr. Gonzalez.

  1 comment for “Need vs Greed

  1. Gregory Iwan
    November 14, 2013 at 8:46 pm

    Could it be that prices are set not from cost up, but from “needed” return down? Izzatright!

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