To shift the financial burden to the working class so the rich can freely and easily get richer has always been the GOP approach to economic growth (trickle-down approach); any attempt to change that, to help those in financial distress is welfare and socialism. As such, the the financial gap between the rich and the working class has widened to unprecedented level.
According to a 2015 paper by the Economic Policy Institute, CEO pay has grown 90 times faster than the average worker’s since the 1970s.The CEO-to-worker ratio was 25:1 in the ‘70s. In 2015, it was above 300:1 in many companies. As per 2019 data, (the latest we used for this article) the pay ratios in many cases are quite large, sometimes topping 1,000-to-1, such as 1,076-to-1 at Walmart. At McDonald’s, CEO Stephen Easterbrook’s compensation was 2,124 times that of the company’s median-paid employee.
Let’s illustrate with hard numbers
- In the 1970’s during which the US average yearly salary for an individual was just over $7,000 (NO Kidding!), the CEO made an average of $175,000 (25 times that of an employee). In the 1960’s the yearly salary was just over $4,000
- In 2015, the average yearly salary for an employee in US was approximately $47,000; the CEO had an average of $14.4 million ($14,400,000 which is 300 times that of an employee)
- In 2019, the average yearly salary for an employee is US was approximately $51,000; the CEO (the highest paid ones) earned $25 millions ($25,000,000+ which is 1,000 times that of the lowest paid employee estimated to be near $23,000 a year)
The average worker’s wages has stagnated, while CEO pay has grown by leaps and bounds over the decades.