Submitted on 2010/11/17 at 10:51 pm | In reply to Wizcon.
I have to wonder what the end result will be in the money grab. Doesn’t, at some point, the middle class cease to be able to support these rich guys because there is no money to spend?
If these CEO’s are so damned smart that there is justification in paying them millions, how come they haven’t figured this out yet?
Stock Tip: Be Worried. Workers Are Consumers.
Repeat after me: Workers are consumers. Consumers are workers.
We’re slouching toward a double dip, and the stock market is imploding, because consumers — whose spending is 70 percent of the economy — have reached their limit.
It’s not just the jobless who can’t spend. It’s mainly people with jobs. Median wages continue to fall. Weekly wages in July for Americans with jobs were 1.3 percent lower than eight months before.
America’s median earners are now earning less (adjusted for inflation) than they earned ten years ago.
Every CEO of every company that continues to squeeze payrolls (Verizon, are you listening? Ford?) needs to understand they’re shooting themselves in the feet. Where do they expect demand for their products and services to come from?