Originally Posted by hojo
Paying the Chinese workers something akin to a comparable living wage would cut into the profits of Wal-Mart then Wal-Mart would cut jobs and take out the profit loss on the worker rather than accepting that they might just have to settle for a 2% margin over an 8% margin..
Great point. Its true that companies still charge for products being produced in China as they would if they were produced here.
From an online article. http://www.washingtonpost.com/blogs/...oaYI_blog.html
"I’ve wondered how much more workers would have if the ratio of top-wages to typical-wages were similar to the ’60s.
The Economic Policy Institute’s State of Working America project has the numbers you want. Here’s how the ratio of average CEO compensation to average production worker compensation has changed from 1965 to 2009:
The early ’90s and early ’00s recessions led to downticks in the ratio, with the latter drop being more dramatic, presumably because of the collapse of dot-com executive pay when the tech bubble burst. A similar drop has happened due to the financial crisis.
According to the EPI figures, the average CEO received $8,917,000 in compensation in 2009, while the average production worker got $48,130. If this 185.3 ratio were narrowed to 1965’s 24.2 figure solely by increasing average production worker pay, then the average production worker would get around $368,471. If it were narrowed solely by reducing average CEO pay, then the average CEO would get $1,164,746 a year."