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By Rachel Goldfarb, originally published on Next New Deal

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Study: The Higher the Pay, the Worse the CEO (Vocativ)

Daniel Edward Rosen looks at a study from the University of Utah, which shows that companies that pay CEOs more than $20 million a year have average annual losses over $1 billion.

  • Roosevelt Take: Roosevelt Institute Fellow and Director of Research Susan Holmberg and Campus Network alumna Lydia Austin look at additional ways high CEO pay distorts the economy.

Chicago Aldermen Want a $15 Minimum Wage in Their City, Too (In These Times)

Progressives in Chicago are pushing their own minimum wage increase, reports Ethan Corey, and the popular measure would be implemented much more quickly than Seattle's.

  • Roosevelt Take: Roosevelt Institute President and CEO Felicia Wong says increasing the minimum wage is a powerful step to promote democracy.

A Small Increase in Inflation Squeezes U.S. Workers (NYT)

Neil Irwin reports that average wages have fallen 0.1 percent in the past year when inflation is taken into account, so while the economy may be improving, workers are still struggling.

The Big Freeze on Hiring (WaPo)

Companies are taking longer than ever to fill open jobs, and Catherine Rampell suspects their reluctance is due to continued uncertainty about the health of the economy.

Domestic Workers, Domestic Cargo (The Baffler)

Ned Resnikoff reviews Sheila Bapat's new book on domestic workers' rights and ties their struggle to other low-wage service jobs that are similarly disparaged as not "real jobs."

Critics Warn Starbucks Employees to Read the Fine Print of New Tuition Plan (ThinkProgress)

Alan Pyke speaks to education experts, who critique the Starbucks program for restricting tuition assistance to a single online university, with no options for in-person classes.

U.S. Reaches $968 Million Mortgage Settlement With SunTrust (WSJ)

Alan Zibel and Andrew R. Johnson report on SunTrust's settlement, the latest attempt to penalize banks for abusive mortgage practices. $500 million is reserved to help underwater homeowners.


Originally posted to Daily Kos Economics on Wed Jun 18, 2014 at 05:07 AM PDT.

Also republished by Daily Kos.

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Comment Preferences

  •  Hope I'm not double posting here (3+ / 0-)
    Recommended by:
    Words In Action, jbsoul, Amber6541

    Thought I'd posted but it didn't go through.

    I'm particularly intrigued by the high pay poor performance study.  Too bad it only goes up to 2011 because I think it has gotten worse since then.

    •  Are you suggesting (2+ / 0-)
      Recommended by:
      jbsoul, a2nite

      income inequality is getting even worse?

      Why, of course it is. It's going to take massive economic reform to change the trajectory on the concentration of income, wealth, capital.

      I've never left a blank space on a ballot... but I will not vote for someone [who vows] to spy on me. I will not do it. - dclawyer06

      Trust, but verify. - Reagan
      Vote, but Occupy. - commonmass

      by Words In Action on Wed Jun 18, 2014 at 08:31:38 AM PDT

      [ Parent ]

  •  The Big Freeze on Hiring (4+ / 0-)
    Recommended by:
    jbsoul, llywrch, Amber6541, Pale Jenova

    As Economist Michal Kalecki said (1942) the wealthy do not like full employment.

    Economist Michal Kalecki, "Political Aspects of Full Employment"

    "Under a laissez-faire system the level of employment depends to a
    great extent on the so-called state of confidence. This gives the
    wealthy a powerful indirect control over government policy:
    Everything which may shake the state of confidence must be
    carefully avoided because it would cause an economic crisis. But once
    the government learns the trick of increasing employment by its own
    purchases, this powerful controlling device loses its effectiveness.
    Hence budget deficits necessary to carry out government intervention
    must be regarded as perilous. The social function of the doctrine of
    'sound finance' is to make the level of employment dependent on the
    state of confidence." (Uncertainty)
    Kalecki stressed that full employment would always be resisted by
    the wealthy because of its upward pressure on wages and consequent
    squeeze on profits. According to Malcom Sawyer, "Kalecki had established
    the lack of effective demand as the major cause of low economic
    activity and unemployment in the early 1930s, and it can be said that he
    did so about three years prior to Keynes." But Kalecki clearly believed
    that the obstacles to full employment under capitalism were
    significantly political; resistance from capitalists (wealthy). Kalecki observed
    that full employment also raises the political and economic power of the
    working class which would prompt the wealthy to attempt to constrain
    this power by bringing full employment to an abrupt end.

    You Don't Happen To Make It. You Make It Happen !

    by jeffrey789 on Wed Jun 18, 2014 at 09:36:39 AM PDT

  •  The Higher the Pay, the Worse the CEO (6+ / 0-)

    CEOs are normally not inventors of major industries. They are basically hired hands who have politicked their way into corporate power. They are just another worker unless they created the industry. True entrepreneurs deserve to profit from their risk-taking. CEOs who have not been the primary force behind creating an industry do not deserve more that 10 to 15 times what an average worker makes in the corporation. They can be replaced just like any other worker. They have done nothing to make jobs and a better economy. In many cases greedy executives give themselves raises and bonuses when their company is going bankrupt. Witness the greed in Enron for example. GM,...and a host of other corporations have CEOs that are given outlandish salaries despite their corporations losing money.

    Basically, it is greed that comes with power to name one's own salary that causes the Exxon Mobil CEO to give himself a 400 million dollar retirement package. Simply put, he is not worth any thing more than a retirement package like government chiefs get. Government executives are allowed 80 percent of their regular salary which is controlled by law so as not to be unduly exorbitant. There is no control over the greed of CEOs in the USA. Some nations have restrictions on how much compensation a CEO can be paid.”

    You Don't Happen To Make It. You Make It Happen !

    by jeffrey789 on Wed Jun 18, 2014 at 09:39:21 AM PDT

    •  Working for Enron (1+ / 0-)
      Recommended by:
      jeffrey789

      (in an executive capacity) was like playing Monopoly with real money, except you didn't have to pony up any of your own.  

      I'm living in America, and in America you're on your own. America's not a country. It's just a business.

      by CFAmick on Wed Jun 18, 2014 at 08:18:05 PM PDT

      [ Parent ]

  •  Assclowns of the Week #99 (0+ / 0-)

    If you like your political news and satire NSFW, then you don’t want to miss Assclowns of the Week #99: Dr. Strangehate edition. On the spit this week: Rick Perry, Dick & Liz Cheney, the MSM, Pat Robertson, and much, much more.

    JP
    www.welcomebacktopottersville.blogspot.com

    Defending bad taste and liberalism since 2005.

    by jurassicpork on Wed Jun 18, 2014 at 08:22:42 PM PDT

  •  The fix is in for CEO pay (0+ / 0-)

    I voted Tuesday, May 6, 2014 because it is my right, my responsibility and because my parents moved from Alabama to Ohio to vote. Unfortunately, the republicons want to turn Ohio into Alabama.

    by a2nite on Thu Jun 19, 2014 at 03:35:55 AM PDT

  •  Starbucks deal still very good (0+ / 0-)

    You won't find a similar deal from, say, Taco Bell. So it's only one school, and it's online. Who cares? All you need on your resume is that you have a college degree. And you can get one without going $30,000 in debt. So go for it!

    And God said, "Let there be light"; and with a Big Bang, there was light. And God said "Ow! Ow My eyes!" and in a flash God separated light from darkness. "Whew! Now that's better. Now where was I. Oh yea . . ."

    by Pale Jenova on Thu Jun 19, 2014 at 06:44:42 AM PDT

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