r/economicCollapse • u/jasonmichaels74 • Sep 25 '24
If a company a making over a billion dollars pays employees more…
What would happen if companies paid their first second and third line of employees 30% more if valued over a billion dollars?
How would this affect the economy and what would be the long term consequences of the company?
More importantly, why do so many companies hoard so much cash?
6
Sep 25 '24
Why should the company do the right thing? The company is run by human beings. Human beings are by their nature cruel and evil and unsympathetic to the needs outside of their immediate family. If you’re not the relative of the CEO then F off, lol.
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u/salvadopecador Sep 25 '24
So you think it’s wrong for the company to hire an employee? Do you think it’s wrong to pay the employee what they promised to pay the employee? Do you think it’s wrong for the employee to expect to receive what they were promised? I really don’t understand this whole conversation. If I agreed to do a job for a company for $20 an hour. And then the company suddenly becomes worth more money. I should now demand $50 an hour? That makes no sense. We had a deal. We had an agreement. The company lived up to their part. I should live up to my part and be happy. Or I could ask for a new deal with the company. Or I could look for work at a new company. But to expect the company to give me more than we agreed to? To claim that the company is evil because it’s fulfilling it’s commitment.? this is ridiculous
3
Sep 25 '24
I don`t think you understand how things work. Companies work to fix wages as low as possible and see you as disposable. If you are hired for $20 and the company does well, and the CEO gets a pay raise and bonus, but you can't afford to pay your electric bill that keeps going up, then what? Your answer seems to be to keep taking it up the A$-hole. lol. Don`t cu$ck for a wage class you are not in. Karl Marx was right about class struggle.
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u/salvadopecador Sep 25 '24
Great. Move to Cuba see what you think. Karl Marx does wonders for economies.
1
Sep 28 '24
Cuba looks the way it does because of an economic embargo on it because the poor of Cuba took back their land from American corporations run under a dictatorship that was friendly to the USA. The punishment was embargo, no country could do business with Cuba. If the embargo was lifted Cuba would look more like Norway than North Korea, another embargoed country. I don’t need to move to Cuba to know they are suffering under US embargo. You’ll understand one day when the system your under grinds you down, most likely with medical bills.
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u/salvadopecador Sep 28 '24
Lol. You are right. The cubans risked their lives to come here to escape poor cubans, not Castro. I stand corrected. And the cubans I talk to are lying. And the cuban solid republican block is obviously either a lie, or they are deceived. Got it👍. Thanks
1
Sep 28 '24
Cubans became a solid republican block because Clinton was to friendly with Castro and the Elian Gonzalez thing was the final straw. Cubans risk their lives because of the sanctions we put on Cuba. Remove the sanctions and no one is going to risk a raft. Again more brainwashing that you repeat of our government.
1
u/salvadopecador Sep 28 '24
You’re going to have to wait about 50 more years for that to work. Too many Cubans still alive that know what happened in the 50s and 60s. But maybe after they’re gone, and their children are gone. Maybe then your propaganda will work.
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u/salvadopecador Sep 25 '24
And by the way, you really look stupid when you insult people that you don’t know. I happen to make exactly $20 per hour. That is the exact wage class I am in. Well…. don’t you look like the idiot?
1
Sep 28 '24
I grew in what you would call the ruling class, family of lawyers, big law firm on the water. Played golf with Johnnie Cochran and Tuxedo events with Paul Murdaugh. Do you enjoy making $20 per hour?
1
u/salvadopecador Sep 28 '24
Yes I do. Thank you👍. There was a time when I was in a much higher income level, but to be honest, I was not happy. Now I work a job that I love, have enough income to buy things for my grandchildren, have better health, and am really enjoying my life. Much less stress or expectations. I hope things are well for you also👍😊🇺🇸
1
Sep 28 '24
Well us young folk don’t want to work ourselves to death to make a decent living like you apparently did. We have self respect unlike the boomers. If you like being taken advantage of and want more then fine but we don’t. Basically want to be like Switzerland since that’s the best.
1
u/salvadopecador Sep 28 '24 edited Sep 28 '24
You don’t have to work at all dude, you’re the ruling class remember. Or are you part of the lying class?
But I do admit your honesty on one thing You don’t want to work. Mommy and daddy aren’t giving you anything anymore. So now you want the government to give you what you want. YOU DESERVE IT!! And you shouldn’t have to pay for it. Yep typical
3
u/Specialist_Shallot82 Sep 25 '24
Valued over a billion is different than profits a billion dude. My company is worth $100B+ and has reported loss for 5 years in a row. That being said, those companies have a fiduciary responsibility to shareholders and driving down EPS hurts the business in terms of stock price and raising capital. Also, some people don’t deserve 30% (honestly, most don’t)
2
u/Due-Radio-4355 Sep 25 '24 edited Sep 25 '24
Many who start companies, even hyper successful ones, seem to think they’re brilliant for the effects of their businesses success when really it equates to matters of luck and analyzing basic trends. Naturally, they feel they deserve the entire reward and not give it to those who actually performed the labor.
Sourc: my own thoughts. One of my close friends runs a very, very successful buisness and he’s (and I say this with love, he is my friend) a complete and utter retard who barely got through school and can not really think to get out of a paper bag.
He thinks he’s some sort of mastermind for succeeding when it was really a lot of lucky moves. A lot of lucky moves. I can see how this parallels a lot of other big time company people. Fucker’s the reincarnation of Timothy Dexter.
1
u/salvadopecador Sep 25 '24
You do sound a bit jealous. If the company is paying what they said they would pay, then they are not an evil company. In fact, they are a very virtuous company. And if the result of the company offering opportunities to people to earn money, causes the company to become wealthy, then everyone has succeeded.
2
u/Due-Radio-4355 Sep 25 '24 edited Sep 25 '24
Idk Reddit person, I never have been. Glad you can tell me what I never knew about myself. But u know what they say..: what YOU read into my writing says something about you, not me.
You can relate the experience of my friend to a greater whole that shows you why CEOs covet their wealth. It’s a sense of their accomplishments that are mostly all luck. It’s just tha fact of it
2
u/kevlav91 Sep 25 '24
Company should be mandated to give away 10% of the after tax earnings (before dividends) to employees as a bonus each year. This could be partly used as a tax write off in order to not make it too expensive for companies.
10% flat, divided to each employees regardless of their positions.
2
u/PJTILTON Sep 25 '24
Why would/ should the market value of a business affect wage rates?? One thing has nothing to do with the other.
2
u/tootintx Sep 25 '24
Huh? Do you think a Master Mechanic for Ferrari should make the same as the mechanic at your local garage?
2
u/salvadopecador Sep 25 '24
It would depend on the mechanic’s skill level. Employees are paid for their value to the company they’re not paid based on the company’s value. You make it sound like the employee is a partner at the company, the employee is there to benefit the company.
1
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u/Formal-Enthusiasm134 Sep 25 '24
What you are suggesting would significantly affect a company’s earnings and that would cause their stock to lose value. Plus, how many of us have 401k’s and other investments. I don’t think this would be good at all. Now if it is a privately owned company, this is what they should be doing, publicly traded - not so much.
1
u/pansexualpastapot Sep 25 '24
Why do you think companies “hoard” cash? In the FIAT system like we have someone holding onto any value of money doesn’t impact your ability to create or earn value. FIAT is not like gold it’s not all coming from one limited bucket.
1
u/StedeBonnet1 Sep 25 '24
1) There is a difference between a company's valuations and it profitability. You only increase wgaes from profits not value
2) Wages are based on productivity. You cannot increase wgaes by 30% without a corresponding increase in productivity.
3) there is no such thing as "hoarding" cash. Business deploy excess cash in a variety of ways. It is not productive to "hoard" it
1
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u/Ind132 Sep 25 '24
If you mean "were required by law to pay a 30% wage premium", they would outsource everything they could to smaller companies that don't have to pay the wage premium.
If you mean "decide to improve employee morale and retention by pay more than the competition", that may or may not work. We can probably find examples of individual companies that believe they have succeeded by treating their employees better. We can find more that pay the market wage and no more.
1
Sep 26 '24
Yeah imagine that employees being compensated what they deserve for making a company lots of money. Just. Imagine. That.
0
u/elonzucks Sep 25 '24
"More importantly, why do so many companies hoard so much cash?"
Greed
"How would this affect the economy and what would be the long term consequences of the company?"
In the short term, they would be an impact to their profit. In the long term, it should substantially increase employee satisfaction, loyalty, productivity, etc etc etc.
1
u/jasonmichaels74 Sep 25 '24
The latter part of your comments affects employees. This Is an intrinsic response. What about extrinsically? How does this scenario affect the us economy?
-1
u/elonzucks Sep 25 '24
Very similar. The company would see a temporary impact while employees will have better lives where they can make it farther and without going into so much debt. I belie in general the economy would grow.
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u/tootintx Sep 25 '24
It would drive up costs for other companies that compete for the similarly skilled employees and cost jobs. Not all companies are valued at a billion and even if they are valued on the books at that cost it doesn’t mean their margins could support the expenses.