Re: Supreme Court Strikes Down Union Attempt to Abridge Employer Free Speech Rights!!
I got news for you bub, in big corporations there's enough money flowing that most employees can live the good life. There is absolutely no standard that dictates that owners should be fabulously wealthy on the backs of their employees. Just admit, you'd love to see the 1800s return in full force, titans of industry, worker slaves, no works rules, child labor, etc, etc. Man it's written all over your face...
Uhhhh--I got news for you bub--no there is not. Do the math. Labor (payroll) is the largest expense in most of those companies. If you gave every employee even a 25% raise, it would bankrupt the company.
Seriously--have you EVER actually looked at a financial statement (income statement). Let's take Southwest Airlines since that's your industry and they've been one of the most successful if not the most successful airlines over the past decade. In 2007 they had operating Revenue of 9.9 billion and expenses of 8.6 billion and a net income 645 million. Now I am using the airline industry to illustrate the absurdity of your statements because that industy's salaries and wages expense is lower than most industies. 37% of their expenses go to salaries and wages--see here:
Southwest Airlines plotting new strategic course | Dallas Morning News | News for Dallas, Texas | Dallas Business News
Most companies its significantly higher than 37 percent. Obviously they have huge overhead in their planes and equipment. Many comapnies operate with far lower capital costs and as such their wages and salaries are much higher cost components--often more than 50%. Certainly most service industries fall into that category.
So even if took the most successful airline which turned a pretty good net profit margin of 5.8% (the oil industries record profits are about 9% btw), and
raised their salaries and wages by only 25%, they go from a 645 million profit to a 150 million loss. Now certainly a person making $40,000 a year isn't going to be enjoying the "good life" by a $10,000 a year raise (and the stockholders would can the board of directors if they ever approved of a 25% across the board raise in any company regardless of income).
Now this isn't counting the fact that many of these companies cycle from losses for a number of years, to profits and losses. Very few of them escape poor performance years.
Now if you were to increase the average salaries of companies employee by 25% in just about any company in the country and you'd bankrupt it unless it was in an industry where the cost could be passed along to the consumers.
But therein lies again your utter and complete failure to comprehend basic economics. In those industies where the additional costs could be passed along to the consumer, prices would simply go up and the 25% raise would effectively be cancelled out by the cost of living increase.
These are rather stark and obvious flaws in your logic that I see you continually making. It again demonstrates a complete lack of any understanding of supply and demand. You can't just raise everyone's salaries so they all are "enjoying the good life."
Its economically impossible to do that. Surely you must understand that?
BTW--you can get all those earnings figures on Southwest from MSN Moneyl
Seriously Minor--take stock investing course or an economics course--you wouldn't be making such ridiculous statements if you actually understood the slim profit margins most companies operate with.
