Remember when
you were a kid in school and your teacher adamantly told you that it was
necessary to learn this excruciating process called mathematics because you
would eventually apply it to your adult life?
Fast forward to you sitting in your boss’s office receiving your annual smack-in-the-face
wage increase. Here we are in the middle
of a minimum wage debate with presidential campaigners talking about the
earnings of CEO’s and hedge fund managers, and you get to go home and tell your
spouse about the so-called generosity of your employer. It's time to dust off the old abacus.
"Kugleramme". Licensed under Public Domain via Wikimedia Commons http://commons.wikimedia.org/wiki/File:Kugleramme.jpg#/media/File:Kugleramme.jpg |
Let’s say
the CEO is an overachiever and works 60 hours a week, while the average
employee works 40 hours a week. I’m
being generous, because my company ‘encourages’ full-time workers to work 39
hours a week with a one hour buffer for early arrivals or late departures. In other words, they schedule us for 39 hours
and expect us to only work 39 hours a week, robbing us of four hours of pay per
month. Arg! Let’s also assume that everyone gets the
benefit of a full-time position, and enjoys the added perk of paid vacation,
receiving pay for all 52 weeks of the year.
Finally, let’s enter a world where all the employees of the company earn
$15 per hour for an annual salary of $31,200.
What a wonderful company this must be!
If our CEO
is also paid for all 52 weeks in a year, he earns approximately $5900 an
hour. That's right, $15 vs $5900. Whoa.
But okay, that’s not greed, that’s just healthy stock market returns,
proving that shareholders approve of what a great job the CEO is doing. That seems fair?
The
average worker in my scenario at $15 an hour is earning 25¢ a minute, while the
CEO is making $98 a minute. Sixty
seconds of work for a worker might buy a phone call, while one second of work for the CEO could buy a fairly substantial sandwich from any
dollar menu in town.
Now let’s
really blow our minds. The state of Washington
currently has the highest minimum wage at $9.47 an hour. This translates to 16¢ a minute. The CEO makes $98 a minute, while the
average worker earns 16¢ in the same amount of time. My mind is blown. How ‘bout yours? Another thing I noticed is that when you
break down the numbers, it doesn’t seem like it would be all that painful to
increase your workers’ wages from 16¢ to 25¢ a minute. Depending on the number of employees working
for the corporation and the number of locations, branches or offices, the
additional cost per item or service could be almost negligible. Additionally, the CEO could take a smaller
earning, still live well, and reduce the cost increase incurred by paying
workers a living wage. Dan Price has
done it.
Some may
read this and reply with a ‘Trickle up Poverty’ remark, or some other such
nonsense about lazy people who want something for nothing. The truth is that the average American needs a
bit more, while the kind folks in charge could do with a bit less. Hillary Clinton can indeed be wealthy and fight for
the financially struggling. Saying she
can’t is like saying I can’t march for Ferguson because I’m white. Puh-lease!
Besides, doesn’t a rising tide lift all boats? I’m asking…
More fun with numbers: