Saturday, August 22, 2015

Strickland wants to stop executives from earning more—“It must stop now.”

I got a FB message from Ted Strickland (running for governor of Ohio): “CEOs and executives get higher bonuses and stock options, while middle class wages haven't budged. It makes no sense, and it must stop now.”

Well, Ted, let’s look at the government sector, since that’s your area. The federal government pays its employees substantially more than they would earn in the private sector. The current federal pay system:

  • Pays hourly wages 22 percent above that of comparable private sector workers;
  • Provides more generous health care and pension plans;
  • Provides total compensation on the order of 30 percent to 40 percent above similarly skilled private sector workers; and
  • Offers near-total job security and insulates federal employees from recessions.

The excuse for this is government workers are better qualified by education and skills, so perhaps that applies in the private sector, too? And CEOs have no job security--if the stock takes a dip, or she can’t compete, it’s out the door. Sort of like Democrat governors. (Strickland lost his reelection to Kasich).

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