Press Reports Concern that CEO Pay Cap is “Socialistic”

The Grand Rapids Press Reported  that the CEO Pay Cap Might be 'Socialistic'

In Thursday’s Grand Rapids Press, there were two front-page articles that looked at CEO pay and local wages in light of President Barack Obama’s announcement that he wants to limit the pay of CEOs who received bailout money. Obama has proposed a cap of $500,000.

The first article, “Cap on CEO pay ‘wake-up call’,” starts out alright, with a quote from a local small business owner and a banker who both feel that the limit is justified. However, it doesn’t take the Press long to get to what any reader knew was coming–calling it socialism.

Dave Smith of the Employers Association is quoted saying:

“I think it totally eliminates the concept of free enterprise,” he said. “Putting a third-party ceiling on it smacks to me as a step toward eliminating free trade, capitalism and a little more toward sharing… It seems to be leaning toward more socialistic tendencies.”

It’s a predictable comment for West Michigan and The Grand Rapids Press. In stories on the economy, the local media typically focuses on the perspectives of bankers and business owners–some of which spout this kind of hyperbole on a regular basis.

However, it was refreshing to see The Press cite a member of the United Food and Commercial Workers. Beyond that, The Press actually points out that CEO pay is 262 times that of the average worker.

The second story, “Area survey tells who earns what” is looks at recent Department of Labor statistics for various jobs in West Michigan. However, there are two gems:

“West Michigan union workers out-earn non-union laborers by nearly 38 percent.”

“Union wages averaged $24.78 per hour, while nonunion hourly pay averaged $18.”

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Author: mediamouse

Grand Rapids independent media // mediamouse.org

2 thoughts on “Press Reports Concern that CEO Pay Cap is “Socialistic””

  1. People throwing around the word socialism for anything that they do not agree to drives me nuts. Let’s talk a bit here about what actually happened. The CEO’s of banks and financial institution ran to the government for bailout because they were failing at their job. The government then gave them a bailout which are our tax dollars. Unfortunately, it probably had to be done. They had the option of not accepting them. By accepting them, they became accountable to all of us the taxpayers. By taking the funds, they also should not be allowed to use these funds to fatten the CEO’s who screwed up in the first place. This is not socialism by requiring them to cut back on their own salaries and bonuses. This is common sense and doing what the taxpayers have to do. Plus, they were responsible for many people losing jobs and homes.Now, think twice before you label things as socialism. If you like it that you maybe do not have a job or scared about your job but think it is okay for the CEO’s who did this to not have a cap – then go ahead and call it socialism if that makes you feel important. I call it common sense and accountability for not abusing our tax dollars.

  2. There are many, many people out of jobs. They did not ask for this. They were caught between a corp who wanted to make their bottom line appealing to stockholders. We need to care about them. We need to demand that CEO’s start realizing that these are human real people who have families and need to feed them and also make mortgage payments. We need to realize that tax cuts don’t work. How can a person who has no income because of loss of jobs benefit from this since he or she has no income to get a tax credit. This is insane. I say that we should demand our reps create somehow jobs and stop the nonsenses about tax cuts which only greases the palms of CEO’s, big business and stockholders.

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