All companies who receive ANY government assistance should have their yearly compensation (including salary, bonuses and stock options) limited to the salary of the President of the United States which is $400,000. Meanwhile, no full time employee should be paid less than a living wage which is approximately $30,000 per year and varies some throughout the country. Thus there would be approximately a thirteen time ratio from the lowest to the highest paid employee in a company. Over time, the ratio should be reduced to approximately eight and apply to any U.S. company who receives any money at all from the federal government. The living wage should apply to every full time employee in America.
The total number of hours that an full time employee can work should be reduce to 35 hours per week so that more employees are needed. This number could be reduced on increased based on unemployment rates.
The only way to get America out of this financial crisis is to give jobs to all Americans and to pay ordinary Americans more money. Giving money to just the rich will not help this economy. America is based on a middle class with plenty of disposable income. As the middle class has been crushed, America has declined.
America is doomed.
I wish I had the power to force you as a businessman to pay all your employees at least 30000 a year.
So, you have a lawnmowing business with three employees. So you’ve got to pay those 3 employees at least $577 gross a week each, or 30K gross a year each. And then, you’re the owner, but I’m going to cap your salary at $1000 a week, because that’s “fair”. So you naturally want to make your max amount of $1000. Plus your overhead and expenses on four trucks and yard equipment amount to average $2000 a week.
So, your weekly basic expenses are about $5000, give or take. Baseline, you need to do 100 lawns a week at $50 apiece to do that. Simple. With four people working, each doing 25 yards a week on a five or even six day schedule, you could probably do a pretty good job, but your mowers will have to be fast, reliable and very proficient. The work week is limited to 35 hours, after all.
But, you can’t always mow that many yards a week. It rains. It snows. People are too broke to pay. On average you lose 10 yards a month, or $500 dollars.
Plus in order to really maintain the business you’ve got to have a “war chest” of capital (bad word). So, you need to surcharge at least $5 on each lawn to pick up an extra $2000 a month or $24K a year.
That’s the numbers. If you want to have a lawnmowing business as I have described above, you are going to have to generate at least 22K a month in revenue, baseline. That’s about $264K a year. Lets talk taxes.
Since your personal income is limited by me to $1000 a week or $52K a year, you will pay 25 percent on that money. Your business will be subject to fed, state and local taxes amounting to about $40K a year.
You’ve got to figure out how to juggle prices in order to meet my salary requirements for your employees, plus the taxes. Most likely, you are going to have to charge more to mow lawns. Think about jacking all the numbers up 20 percent.
You might be better off just working for someone else, where you can maybe one day make more than $1000 a week without the headaches of ownership. But, it’s difficult because wages are set at a minimum of $577 a week, so companies really have to juggle manpower. They either make the higher paid employees do a share of the lower paying work, or they just do without the higher paid people in favor of the lower paid grunts. Really, the country has to export most of the higher paying jobs overseas to get them done in affordable countries.
We’re thinking about forcing companies to have higher paying jobs in this country. But we’re worried it’s going to raise prices on everything. So then the wage relativity factor will kick in, so that the menial people earning the minimum 30K a year will be right back in poverty again. I feel it’s better to just keep everyone at the same salary pretty much, grass cutters and electricians and soldiers and teachers and computer programmers, all earning the same basic amount somewhere between 30K and 50K a year.
Cool article, was wondering if you would allow me to link to it in a blog post i am currently typing for my own website? Thanks