News item from CNN/Money: CEO pay rose, worker wages fell.
The disparity not only makes it tougher for workers to make ends meet, analysts said, but also threatens the overall health of the economy, which depends on consumer spending for two-thirds of its strength.
Costs of the basic living necessities, like food and gas for transportation and heating, and other expenses like college tuition, are increasing boundlessly. These expenses amount to a drop in the bucket for the average CEO, the same CEO who has seen his salary increase by 17.2 to 22 percent depending on industry. Meanwhile, the average worker, for whom these basic costs are a more significant porion of their income, has seen his or her salary decrease.
It’s not realistic for society to use this trend in order to encourage more people to become CEOs. That just doesn’t make any sense.
Updated July 14, 2010 and originally published October 19, 2004. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.