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Kohn: Thank GOD the Rich are Getting Richer

Posted May 9, 2011 12:41pm by

It’s been a tough week. Unemployment continues to rise. Pakistan may be aiding and abetting terrorists. Birthers gave way to deathers. But rest assured, as America slumps its way through these difficult economic and political times, the sun continues to rise for the top 1% of the top 1% — those for whom, it seems, the sun never sets.

And like a nation of desperate couch potatoes hooked up to a vicarious IV-drip of life in the form of reality television, we watch passively as our nation’s titans and oligarchs get richer and richer at our collective expense.

None other than the Wall Street Journal reported today that CEO compensation rose 11% in 2010. Now let’s think about that for a second. The economy barely grew by 2%. By several measures, salaries for average working folks either remained stagnant or actually fell in real terms. But the top 1% of 1% — who already control more wealth than the vast majority of American people combined — they got richer. Bravo, America. You’ve outdone yourself this time!

In anticipation of this great news, the Republicans designed their budget proposal to give even more money to CEOs and the super rich. Because they’re the “job creators,” right? Wait…CEO perks rise 11%. Unemployment rises or stays about the same. You do the math.

And if, incidentally, this is the first time you’re hearing this news, do note that four of the top 10 slots were held by CEOs of media companies. That’s right, the same media outlets that are regurgitating the baloney about how CEOs and big businesses that already have record levels of profit and capital reserves somehow need more tax breaks to create jobs that they are currently failing to create.

That analysis is not hard-hitting fact but self-serving fiction.

America’s economic recovery must be measured by rising salaries and compensation not on Wall Street but on Main Street and, really, on the side streets of America. Do you feel 11% better off than a year ago? Or are the CEOs and super rich even hoarding our recovery to stuff in their own pockets now, too?

Sally Kohn is not super rich. She is a community organizer and political commentator. She is the Founder and Chief Education Officer of the Movement Vision Lab.

Posted May 9, 2011 12:41pm






  • http://Website ethan

    Well it looks like you’ve indirectly stumbled upon a key flaw of the bailouts and excessive government spending – treasury secretary geithner, et al, are constantly picking winners and losers in business (sometimes failed businesses), and the upper management of those companies essentially pocket the loot (and sometimes they got to write off bad debt). All on our dime.

    But your conclusion is mis-guided – don’t blame the CEO’s of these companies; blame your beloved big government asshats for giving their rich, large campaign-contributing friends our tax dollars!

    Focusing at the CEO’s rising income is considering a symptom rather than the cause. Look at the trend of those top CEO earners – they’re largely bankers, defense/military contractors, big oil, and don’t forget car companies!. The rich get richer because the government hands them our money, or sets the rules in their favor, or both!

    The conclusion is that central planners can’t “fix” an economy – either by printing money, or deciding what special interest groups or big business cronies get tax dollars/tax breaks/competitive advantage, or setting interest rates, etc. More meddling = more future economic bubbles.

    Wonderful point on the media pushing for more benefits, by the way – great example of exactly why you can’t ever trust someone’s opinion if it’s directly self-serving. It’s like when anyone in the real estate business says “we need to continue subsidizing the housing market with fannie and freddie!” We should ask “why, because you directly benefit? can we have an objective, non-partisan opinion instead?”


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