Maximum Wage

A big point of contention in this country is the financial disposition of the nation.  1% of the nation owns a large portion of the country and the top 10% owns over 90% of the nation as a whole.  See the diagram below to see the disparityof wealth in America.

That's cool, I liked Georgia, anyway.

But free marketers say that there’s nothing we can do about it.  If you do a good job, you should get paid and paid well…or at least you should if you’re a CEO.  They claim that doing anything about it would violate the freedoms of the wealthy and would ruin the free market.

We created a minimum wage to ‘help’ the poor class.  It does more to damage small business, you know the least wealthy businesses, than it does to harm big business who runs the country, you know the business owned by that aforementioned 10%

So why can’t we institute a Maximum Wage?  You have to be paid $7.25 an hour, minimum.  So how about a nice calm…$40.25 an hour, maximum.

Put a moratorium on hours workable as well; no person can work more than 16 hours without an 8 hour break.  So if you pay a CEO maximum wage for 16 hours a day, every day-7 days a week, year-round, including overtime…then you achieve the maximum wage for a salaried official.

So regular time for 40 at $40.25 equals out to $1610 a week; add in the overtime at $4347 for time and a half of $40.25 over 72 hours.

That means that the maximum yearly wage would be $309,764.  This will include bonuses, so no salary of $300k and then a $4 million bonus, or anything like that.

Let’s look at Fannie Mae and Freddie Mac’s CEOs as a comparison.  They each make $900,000 and then get paid $2.4 million in bonuses.  This is as they ask Congress to give them more money because they can’t make the business profitable enough to stay out of bankruptcy.

So if we assume they had the same losses in 2011 as they did in 2010, that means that Fannie Mae lost $14 billion dollars, even thought they posted an income of $153.8 billion.  That means that their operating expenses were in excess of $167 billion dollars.

So if we cut the CEO of Fannie Mae, Mike Williams, down to $309,764 a year in salary…we just saved the company $2,990,236.  That’s almost 3 million dollars!

So if we assume that the executive board makes 75% of the CEO’s salary and bonuses, that would be about $2.5 million dollars per person.  If we assume an executive board of 10 people, plus the CEO; and we cut that board down from 2.5 million to $300 thousand, then we save 2.2 million dollars, per person.

With just the executive board we’d save the company $24,990,236, that’s roughly $25 million dollars.  It’s not quite 14 billion, but it’s a step in the right direction.  Imagine how many people there make over $300 thousand dollars already, that would all end.

Now we make lobbying illegal like I said in the last post and we also save them another few million.  Before you know it…Fannie Mae and Freddie Mac will be profitable again!

~RCS

Or else they’ll fold and we can replace them with something that really works.  Either way’s cool with me.

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2 Comments (+add yours?)

  1. kyledavidsmith
    Nov 29, 2011 @ 16:43:30

    I like the idea, it’s just too bad the millionaires in congress will never pass it. The problem with solving income inequality through legislation is that anything viable will harm the people that have to sign off on it.

    Reply

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