MONDAY, JUNE 6, 2022 GREED

 MONDAY, JUNE 6, 2022 GREED

I want to look at what has been called “The Seven Deadly Sins”

They are typically ordered as pride, greed, lust, envy, gluttony, wrath, and sloth.

Today. I want to look at GREED - defined as an intense and selfish desire for something, especially wealth, power, or food

One source says this: “Today, greed often takes the form of consumerism and over-work. Consumerism is a view of the human person that reduces us to what we can buy and consume.”

Another source says: “greed is a sign of inner poverty. A greedy person feels so shallow and empty from within that he tries to fill himself with things, power, and money to fill his emptiness. This emptiness is very hurting and no one wants to face it. Greed never helps, on the contrary, it brings more pain and misery. Greed promises much but delivers only suffering”.

“Wealthy corporations and billionaires are exploiting a political narrative to raise prices on consumers, making record profits in the process. In fact, American billionaires increased their fortunes by an astronomical figure of $2 trillion during the pandemic.

“McDonald’s, now with higher prices, topped $23 billion in revenue in 2021.”

“Exxon Mobil reports an $8.9 billion fourth-quarter profit as oil prices soar”.

“Starbucks raising prices despite soaring profits”.

“UPS just posted record-breaking profits, plans to hike prices in 2022.”

Recently some people are pointing to the rate of inflation as a possible point of greed.  True, traditional economics of “supply and demand” is working.  For example, the supply of gas is limited as Russia’s oil and gas have been limited due to their invasion of Ukraine.  Therefore, supply is down, but demand is the same (or higher).  More people want access to a limited amount of oil and gas energy.

Is it “price-gouging” or is it higher prices due to supply-chain logistics, limited supply, the Russia-Ukraine War, or GREED?  Or is it something else (like higher quality materials)?  

And, where are the price increases going?  To the CEO (chief executive officer)?  To the Board of Directors?  To managers? To the ‘on-the-line’ everyday person?

“The Economic Policy Institute (EPI) estimates that CEO compensation has grown 1,322% since 1978, while typical worker compensation has risen just 18%. In 2020, CEOs of the top 350 firms in the U.S. made $24.2 million, on average — 351 times more than a typical worker.”

Read that again.  Since 1978 - the average worker’s pay has risen 18%.  Meanwhile, the CEO pay has risen over 1300% - over 13 TIMES the average pay in 1978.  

Another look:

CEOs now are making 351 times that of a typical worker, but back in 1978, it was only 31 times. 

Now to be fair, CEOs frequently get stocks and other incentives - and in a bull market, the stock price goes up and CEOs' value goes up.

Another consideration is that normally the Board of Directors has to approve the CEO's pay package.  So, the Board of Directors has been very generous to their leaders. (Pay 351 times that of the average worker).  

Other considerations.  In effect, CEOs become the “royalty” of the country.  We don’t have Dukes, Earls, and Barons, but we do have corporate leaders. 

From another source:

“In a now-famous 2014 Politico article titled “The Pitchforks Are Coming… For Us Plutocrats,” Nick Hanauer, a billionaire entrepreneur, and self-identified “proud and unapologetic capitalist” says he worries that inequality is increasing at such a fast rate that the U.S. is “becoming less a capitalist society and more a feudal society” 

“Unless our policies change dramatically, the middle class will disappear, and we will be back to late 18th-century France. Before the revolution,” Hanauer writes, predicting that pitchforks and guillotines are what is next if CEOs like him don’t speak out against inequality. 

That (at least to me) is an interesting viewpoint.  The United States is becoming a feudal society.  The kings, princes, and gentry lorded it over the lowly serfs (who do the work).  We’re (the average folks) just “working for ‘The Man’”.  Pawns.

Maybe the old statement ““the rich get richer, the poor get poorer” is true.  Is it greed?  Is it smart decision-making?  

Are the CEOs (royalty) giving back to society?  Are they making life easier for John Doe and the little people?  

I was a privileged professor - maybe a little like “royalty”.  I went to at least two academic conferences most years - in fancy hotels, in exciting cities.  I taught 12 hours a week!!  Yes, I had to advise students, grade papers, do research and publishing, and serve on committees.  My counterparts in K-12 schools teach in a classroom five to six hours a day (or 25 to 30 hours a week) - and still did grading and other work.  (They didn’t have time to publish!!)

A few times in my academic career there was “merit money” - where professors who were doing an outstanding job got more pay.  (But, no stock options!!)  Does an outstanding teacher or nurse get more pay as compared to other people?  

Back to the concept for the day - Greed

From Luke 18:

“Then he said, “Beware! Guard against every kind of greed. Life is not measured by how much you own.”

Then he told them a story: “A rich man had a fertile farm that produced fine crops.  He said to himself, ‘What should I do? I don’t have room for all my crops.’  Then he said, ‘I know! I’ll tear down my barns and build bigger ones. Then I’ll have enough room to store all my wheat and other goods.  And I’ll sit back and say to myself, “My friend, you have enough stored away for years to come. Now take it easy! Eat, drink, and be merry!”’

“But God said to him, ‘You fool! You will die tonight. Then who will get everything you worked for?’

“Yes, a person is a fool to store up earthly wealth but not have a rich relationship with God.”

*****

Tomorrow another topic!!!

Karen

June 6, 2022