Labor costs killing HOG
in [Motorcycles]
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From: brad herschel on 13 Aug 2010 15:56 JD, I agree with many of your comments. In the sixties the unions were too powerful. Then a brief period of fiscal sanity. At the same time whole industries were being exported. Corporate, (human) greed is a factor. Looking back I wish we had protected and even subsidized certain core industries. Now America is being pushed from the world market. we have very few products to offer. Fact is that other countries can make a product just as good and for half the price. The prognosis is for disaster. A consumer society won't last long, can we sustain a decent life style selling each other burgers and overpriced coffee(Starbucks)? Feel sorry for the kids coming along. Germany, pop. 80 million, exports more then the USA.
From: Twibil on 13 Aug 2010 15:57 On Aug 13, 12:30 pm, kickstart <kickstart...(a)gmail.com> wrote: > > > > But unless Harley > > and the unions can agree on wage adjustments Harley will have to move. > > Much talk about Kentucky. > > Hate to see an American institution move out of the country. > > geography 101 > Kentucky ain't outta the country No, but apparently irony is foreign to you.
From: Greasy Rider on 13 Aug 2010 16:10 On 8/13/2010 15:57, Twibil wrote: > No, but apparently irony is foreign to you. That's not true....I saw him ironing his chaps on more than one occasion. Greasy
From: JD on 13 Aug 2010 16:36 On 8/13/2010 12:56 PM, brad herschel wrote: > JD, I agree with many of your comments. In the sixties the unions were > too powerful. > Then a brief period of fiscal sanity. At the same time whole > industries were being exported. > Corporate, (human) greed is a factor. Looking back I wish we had > protected and even subsidized > certain core industries. Now America is being pushed from the world > market. we have very few > products to offer. Fact is that other countries can make a product > just as good and for half the > price. The prognosis is for disaster. A consumer society won't last > long, can we sustain a decent > life style selling each other burgers and overpriced > coffee(Starbucks)? Feel sorry for the kids coming > along. Germany, pop. 80 million, exports more then the USA. Keep in mind that the cost of production includes management compensation. When you have a CEO that gets $500,000,000 a year that's equivalent to 10,000 employees making $50,000 a year. Now consider that 7000 Boeing employees produce around 40 747's a year at $500,000,000 a pop. It makes more sense to pay the greedy fuckers at the top less and create more jobs. *THAT* is what builds capital.
From: Tim on 13 Aug 2010 17:20
On Aug 13, 4:36 pm, JD <jdblackwe...(a)gmail.com> wrote: > Keep in mind that the cost of production includes > management compensation. When you have a CEO that > gets $500,000,000 a year that's equivalent to > 10,000 employees making $50,000 a year. Now > consider that 7000 Boeing employees produce around > 40 747's a year at $500,000,000 a pop. It makes > more sense to pay the greedy fuckers at the top > less and create more jobs. *THAT* is what builds > capital. Of course, executive compensation is higher than it has ever been. That notwithstanding, no executive in the top 200 companies (in revenues) in the U.S. is making $500 million per year. Googling found a study of pay from the first 200 U. S. companies with fiscal year 2008 revenue of at least $5 billion that filed their proxy statements between October 2008 and March 2009. Exactly one CEO in that list had pay, stock options, and incentives over $100 million; the CEO of Motorola. No one else had total compensation of even $50 million, which is a mere 1/10 of your example. In fact, only 13 of the 200 CEOs in the list had total compensation of over $25 million, which is only 1/20 of your (assumed to be hypothetical) example. In actual fact, the CEO of Boeing had total compensation of $15,606,000, which is about 3% of your example. That would be about 180 jobs with a salary of $50,000 - since $50,000 a year salaries actually cost about $85,000 per year in total compensation. That's a far cry from your 10,000 jobs figure. In fact, Boeing has 157,000 employees. That means that the CEO got just under $100 in total compensation for each employee working for the company. And the company had revenue of $60.9 billion in 2008, with net income of $2.67 billion. So, in fact, the CEO was compensated with approximately 6/10's of one percent of the net income of the company. Now, Mr. McNerney may very well be a greedy man - I don't know him personally - but the question of what is wrong with the U.S. economy is a lot more complex than just the fact that some "Captains of Industry" are phenomenally greedy. |