Giving pay raises by percentages exacerbates income inequality.
It is fashionable to “talk” about closing the income gap — where chief executive officers make a hundred times what their employees make.
But why not talk about how pay raises are computed for most government jobs and businesses?
Every time I read in The Tribune about some top executives, college presidents, school administrators, police or fire chiefs getting a percent pay increase, I cringe.
If I make $40,000 and my boss makes $120,000 per year and we each get a 5 percent pay raise, my raise is $2,000 and my boss’ is $6,000. So the gap between us goes from $80,000 to $84,000!
The next time, my raise is 5 percent of $42,000 or $2,100 and my boss’ is 5 percent of $126,000 or $6,300, and the gap grows to $88,200. Now, how is that equitable in anybody’s world?
Where are the real compassionate people who are willing to tell the truth?
t is easy to point fingers at Wall Street and large corporations, but when are these issues going to be addressed for all employees?