More Unequal Than Ever

A few days ago, I wrote about the actions of corporation managements skewing the reward system so badly that massive inequality has been the result. Researchers noted that:

"Because of the inequality in the United States, even though our per-capita income is higher than many countries, our low-income families are not better off than those in other places where per-capita income is lower."

Two recent reports seem to bear out this analysis. In the first, the IRS reports that, for the first time since the Second World War, overall incomes declined for two consecutive years (2001 and 2002).

"[G]ross income reported to the agency fell 5.1 percent to $6.0 trillion in 2002, the most recent year for which data is available, down from $6.35 trillion in 2000. Because of population growth, average income fell even more, by 5.7 percent, and adjusted for inflation the decline was 9.2 percent."

And yet, on the very same day it was reported that average salaries for CEOs had risen 15% last year, after an average increase of 9.5% in 2002. And, of course, the bigger the paycheck, the bigger the raise:

"n comparing 2002 and 2003 compensation, the survey studied more than 1,400 chief executives who occupied their posts in both years ... Among the 372 companies in the survey that are listed on the Standard Poor's 500-stock index, median compensation for chief executives rose 22.2 percent. Of the 1,059 remaining chief executives, the median increase was 13.1 percent. Taken together, the increase was 15 percent."

As the researchers say in their report:

"With statistics such as these, it would appear that any chance of reining in executive compensation has disappeared."

And still the wealthy bitch about their lot in life. For example, I was fascinated to read today that Homeland Security Director Tom Ridge may resign in the winter because he is having trouble putting two kids through college on his paltry $175,700 a year salary. Maybe he could get some household tips from ordinary people in, say, West Virginia, where average family incomes barely break $30,000; or even some families in the "wealthiest" State of Maryland where average family incomes are just over $50,000. Maybe then, he'd shut up and realise just how fortunate he is.