The “Paid-What-You’re-Worth” Myth

[Crewleader]

Thursday, March 13, 2014

By Robert Reich

It’s often assumed that people are paid what they’re worth. According to this logic, minimum wage workers aren’t worth more than the $7.25 an hour they now receive. If they were worth more, they’d earn more. Any attempt to force employers to pay them more will only kill jobs.

According to this same logic, CEOs of big companies are worth their giant compensation packages, now averaging 300 times pay of the typical American worker. They must be worth it or they wouldn’t be paid this much. Any attempt to limit their pay is fruitless because their pay will only take some other form.

"Paid-what-you’re-worth" is a dangerous myth.

Fifty years ago, when General Motors was the largest employer in America, the typical GM worker got paid $35 an hour in today’s dollars. Today, America’s largest employer is Walmart, and the typical Walmart workers earns $8.80 an hour.

http://robertreich.org/post/79512527145

[Curmudgeoness]

1. This is probably the most incredible stat in the piece...

According to the Institute for Policy Studies, the $26.7 billion of bonuses Wall Street banks paid out last year would be enough to more than double the pay of every one of America’s 1,085,000 full-time minimum wage workers.

The remainder of the $83 billion of hidden subsidy going to those same banks would almost be enough to double what the government now provides low-wage workers in the form of wage subsidies under the Earned Income Tax Credit.

That just blows me away.

[truebluegreen]

2. Seem to recall a study not so long ago (in the UK?)

that showed trash collectors were worth much more to society than bankers. Perhaps Wall Streeters and their fan boys should address that.

[Adam051188]

3. wall street should have some interesting times ahead if i'm not mistaken

most people in the "baby boomer" generation who are not planning on working until they die have savings in the form of a stock portfolio known as a "401k", am I right so far? I'm aware that the federal reserve just prints money whenever and however it feels like it totally separate from any other authority, but that money that those...."people...." on wall street give themselves comes from somewhere. what happens when these retiring people start calling on those savings? maybe just print the money? I don't know. It all seems so inane but I guess that's life in a nation that operates 13 Nimitz class aircraft carriers during non-wartimes. you get to do inane things and people just go along with it. can't pay people too much though, then they start saving money and having a little free time and not being totally under control. it doesn't matter what you're worth. if you aren't "ruling class" you are either "1% class" which benefits from the ruling class policy and act as metaphorical prison guards/slave drivers to the "subsistence class" which is typically beaten down and brain dead to the point where they don't understand much that isn't explained in small slow words.

[starroute]

4. This is why they're desperate to privatize Social Security

They've known for years that the Boomers would be withdrawing their investments -- and their only hope to keep propping up the Ponzi scheme is to have all the active workers' contributions that now go into the Social Security Trust Fund be diverted to Wall Street instead.

[awoke_in_2003]

5. Garbage men and plumbers...

contribute greatly to the health of the population.

[truebluegreen]

7. Yep. Whereas banksters eff with the system for money,

to the detriment of the population as a whole.

[Scuba]

6. If "Paid-What-You're-Worth" was real, Paris Hilton would be broke and the maids who cleaned ....

... all those hotel rooms would be wealthy.

[In_The_Wind]

8. If I was paid what I'm worth, I'd be eating Eggs Benedict this morning,

instead of cereal.

[Ikonoklast]

9. Cereal is better for you anyway. Your heart will thank you.

As long as it isn't that sugary kid's stuff.