This Economist Just Solved Income Inequality In One Simple, Easy To Understand Facebook Post

mister-moneybags

The old standard argument from companies and CEOs who don’t want to raise the minimum wage has been “it will kill jobs!”  Which, of course, scares the living daylights out of anyone and everyone who can’t think for themselves about this issue, and doesn’t seem to quite understand that this argument is full of sh*t.

For instance, recently, Dunkin’ Donuts’ CEO Nigel Travis told CNN that raising the minimum wage will “affect small businesses and franchises,” and that it would keep the company from hiring more employees.

Common sense? More money in people’s pockets = More money to spend = More revenue = More hiring… but, that’s just common sense, and really, who needs any of that?

One person who is full of knowledge and common sense on this topic is Economist Robert Reich.

Reich just called out Nigel Travis on his Facebook page and exposed him for the liar and greedy person that he really is. He said:

“Dunkin’ Brands CEO Nigel Travis (pictured below) is calling the decision to raise the hourly minimum wage for New York fast food workers from the current $8.75 to $15 statewide in 2021 “absolutely outrageous.” This “sudden increase,” Travis declared in a recent CNN interview, will hurt the people who run Dunkin’ franchises. Travis has enjoyed a bit of a “sudden” pay hike himself. He made $10.2 million last year — over double his take-home the year before — thereby upping his personal pay rate (assuming he works 50 hours a week) to $4,000 an hour. Travis says the minimum wage hike will mean “less hiring” at Dunkin’ Donuts, adding that “I don’t want to sound threatening.”

Then Reich explained a simple strategy that would combat this staggering inequality between those at the top in the company and those at the bottom working hard to produce all the revenue.

Reich writes:

“One way to reduce the staggering ratio between CEO pay and the pay of their workers would be through a corporate tax that rose with that ratio: Companies with higher CEO pay relative to their median workers would face a higher tax rate; companies with low ratios would pay a lower rate. The first step would be for companies to disclose that ratio. The 2010 Dodd-Frank Act required companies to do so, but the Securities and Exchange Commission has dragged its feet on the requirement because of intense corporate lobbying. Tomorrow, at an open meeting, the SEC votes on a proposal for such disclosure.”

If this were to happen, it would more than encourage companies to climb on board with paying better wages. That is, of course, if the companies want to pay a better tax rate. If they want to pay through the nose to the IRS as a company just to make sure their CEO salary is as high as possible with no regards to the people who work hard to keep the company afloat, well, then, that’s up to them.

It’s a basic proposal that will keep pay fair across the board. If paying a worker $15/hour so they can pay their bills and get off of government assistance “prevents hiring,” then why doesn’t paying yourself $4000+/hr seem to have the same effect? You see, it doesn’t, because it’s a lie. These CEO’s want the money for themselves and see their low wage working employees as pawns in their scheme to keep profit high and their salaries higher.

Hopefully, the SEC will vote to approve this proposal that would make the pay ratio transparent. That way we can all see, once and for all, how greedy some of these companies are and expose their lies and push for a living wage for everyone who works hard.

Reprinted with permission from Addicting Info