Linda on Nostr: Allowing CFOs to make product decisions is always a recipe for failure. Pun intended! ...
Allowing CFOs to make product decisions is always a recipe for failure. Pun intended!
The piece missing from the discussion of inflation is the 30+ years of depressed wages. The federal minimum wage is still $7.90 / hr. It was last changed in 2009 based on legislation passed in 2007.
Many of our geriatric Congressional reps and senators have failed to keep everyday worker wages on par with normal inflation. While many states have attempted to rectify the problem, not having a federal standard means larger companies can move to low-wage states. I saw this when living in Vermont, where the anchor company in a small town moved many of their middle-class jobs to Texas because it was cheaper for the company but much worse for the overall health of the town. With the missing employees, they then proceeded to argue that their real estate was worth less and should therefore, pay less in property taxes. This in turn forced the rest of the town to pay increased taxes including many who had seen their jobs move south.
Congress could address this by doing any of the following:
- taxing CEO salaries at 80% when they exceed low worker wages by more than a certain percentage
- pegging federal minimum wage increases to inflation
- eliminating loop holes in the tax code for the incredibly wealthy & simplifying it for everyone else
- staffing the IRS to go after the incredibly wealthy who dodge paying taxes
- preventing Wall Street penalties for saving money. (During the pandemic, companies that made huge profits could not save them without being penalized by Wall Street. So they spent money in ridiculous ways and then laid thousands off as the economy sorted itself.)
Reducing the size of the cake mix is a race to the bottom solution that will only depress sales of cake mix in the long run.
The piece missing from the discussion of inflation is the 30+ years of depressed wages. The federal minimum wage is still $7.90 / hr. It was last changed in 2009 based on legislation passed in 2007.
Many of our geriatric Congressional reps and senators have failed to keep everyday worker wages on par with normal inflation. While many states have attempted to rectify the problem, not having a federal standard means larger companies can move to low-wage states. I saw this when living in Vermont, where the anchor company in a small town moved many of their middle-class jobs to Texas because it was cheaper for the company but much worse for the overall health of the town. With the missing employees, they then proceeded to argue that their real estate was worth less and should therefore, pay less in property taxes. This in turn forced the rest of the town to pay increased taxes including many who had seen their jobs move south.
Congress could address this by doing any of the following:
- taxing CEO salaries at 80% when they exceed low worker wages by more than a certain percentage
- pegging federal minimum wage increases to inflation
- eliminating loop holes in the tax code for the incredibly wealthy & simplifying it for everyone else
- staffing the IRS to go after the incredibly wealthy who dodge paying taxes
- preventing Wall Street penalties for saving money. (During the pandemic, companies that made huge profits could not save them without being penalized by Wall Street. So they spent money in ridiculous ways and then laid thousands off as the economy sorted itself.)
Reducing the size of the cake mix is a race to the bottom solution that will only depress sales of cake mix in the long run.
quoting note17en…jxd6Capitalism is crumbling cookies. Grannies everywhere are crushed and cranky about the changes.
https://www.thekitchn.com/grandmas-arent-buying-boxed-cake-mix-23687784
#green #shrinkflation #economy #capitalism #inflation #cook #baking #cooking