Posted by oldtanker on January 06, 2012 at 20:06:25 from (66.228.255.223):
In Reply to: unions posted by mosinee dave on January 06, 2012 at 16:22:30:
This argument involves wages. Some say we need a living wage law. Well I'm not a rocket scientist but I can add and subtract. Lets say we pass a new law requiring that everyone be paid at least 15 an hour. Every company is going to raise thier prices to compensate for the higher cost of producing or marketing a product. So prices will go up to where 15 an hour buys no more than waht 7 an hour will at current prices. If I owned a company and you told me that I was going to have to pay more to make something I would raise my prices to STAY in business and make a PROFIT. You would too. If you didn't you would be gone. Lets say I making something that can be put in a store for 1 dollar. Then you force me to pay my workers more because they went union. To make the same profit I now have to put that in the store for 1.25. Now Joe down the street can make the same thing and can still put it on the shelf for a buck because his workers didn't buy into the union. Now I outsource or close my doors. Pretty simple. And becaue I outsourced I can now put it in the store for .75 cents.....so Joe follows my lead just to stay in business. So the pro union argument fails to add up.
Now if I own stock in one of those companies I should be able to see a profit on my investment in both dividends and in the value of the stocks. You wouldn't put your money in the bank for no interest would you? And investing in stocks is a bigger risk. When you take a bigger risk you get more for your investment most of the time.
Now this stuff about CEO wages. You see nothing wrong with a multi million dollar cantract because a guy can pass a football.....well if a CEO is doing his job why should he not be paid for it? And even if he did take a pay cut and even if the company did plow that into employees pay just how big of a raise would you expect? If the CEO of Wal Mart was to work for free one year it would work out to about 3 cents and hour for each hourly employee. A whole 1.20 a week. WOW! Boy I'd take that......NOT! The idea that worker would really gain form that is propaganda pure and simple. Besides the board and the stock holders have the say in what they are going to pay the CEO. As long as the company is making a profit it's really none of your business. Now don't get me wrong. I think most of em are overpaid but it isn't my business. And the golden parachute is down right wrong when the tax payer foots the bill for it.
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