Why Higher Wages Benefit Everyone


Conservatives like to defend the ultra wealthy corporate CEOs and their lovely money, pandering for donations.  Don’t get me wrong, I agree.  It’s their money.  They earned it.  Why not fight to keep as much as possible.


We have a consumer driven society and culture.  To think we have any other economy is to have your eyes fused shut.  The reason we’re in such deep you  know what now is because people aren’t going out and spending.

One of the reasons people aren’t spending is because real, actual wages, once inflation is factored out, have grown only 6% for the average person – since 1985.  Right now people are making less than they were several years ago.  When you factor in inflation for ongoing high gas prices, people don’t have much money to spend.

Corporate CEOS and executives have seen over a 300% increase in their salaries in the past decade.  Right now major corporations are sitting on about $2 trillion in cold hard cash.

I would like to advocate some redistribute of that wealth and those very high salaries – to their rank and file employees.  No, not for socialist reasons, but for cold hard capitalism.

Let’s say, for the sake of argument, that there are “X” number of corporate execs – say 10.  There are 100 people working for those 10 execs.  If the execs take home their salary, they buy 10 new refrigerators, maybe 10 new cars, built 10 new homes.  That’s great.  They deserve it.


If the corporate brains would use those brains and take just a 200% salary increase instead of 300%, and put that 100% increase back as much higher wages for their employees, instead of 10 widgets, stoves, cars, etc, maybe those 100 employees will go out and buy 70 new refrigerators, 90 new widgets, and 50 new cars.

What happens when Corporate “X”, who has “redistributed” that third of the corporate exec pay gets paid back?  Say Corporate “X” makes squirrel cages to power refrigerators.  While they were only selling a dozen squirrel cages, previous to their raises, now, because their employees are going out and spending all that money they are now making, orders for new squirrel cages increase from a dozen to five dozen.  They must hire two additional employees.  Those two employees go out and buy something, causing Corporate “Z” to hire four new people.

It is so darn simple.

When you sit on cash, it just sits there.  When you spread it around like papa cow excreta, it causes things to grow.  When you grow roses, it’s called fertilizer.

You can’t grow roses in soil that is lacking in nutrients.  They must be nourished, watered, fed, pruned, fed, fertilized, watered, fed, watered, dusted for bugs, watered, fed, pruned, cut, watered, dusted for more bugs, watered, etc.

Our consumer economy is just like that.  It’s perfectly acceptable for corporate execs to get big bucks.  But, if just a percentage of those big bucks were poured back into paying their rank and file, “average” workers more, these bucks that were spent would eventually find their way back into the company through a growing economy.

During “normal” times, when rational conservatives are in charge, “normal” people comprehend that, in order for an economy to grow, money must be reinvested.  Yes, these are frightening times, but someone, somewhere, needs to have the courage to go ahead and start having a little faith in themselves. Until this happens, we’re doomed to abject misery.

It’s not about class warfare, but having enough faith in this nation to try “reinvesting” in human resources – your employees.  One of the reasons we’re in such shape is because business went south to Mexico, to pay a worker an entire day what they were paying here for an hour.  Sure, it’s a good idea for the corporate bottom line, but we’re now reaping that bottom line – we’re nearly in a depression.

Please, enjoy all that money.  You’ve earned it.  But, if you were to spread it around a little, you’d earn even more.  Since it is obvious there is no morality involved here, let’s just appeal to the bottom line – greed.  You spread the money around, paying employees more, and they spend, and you make more – eventually.

How difficult a concept is this?