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Limits on Executive Pay: Should We?

I read a fairly interesting piece today which discussed the recent announcement from the White House of new guidelines on executive pay for companies who received bailout money.  The article starrted me thinking about the reasons that people believe CEO’s make too much many and just how much is too much.  You can read it as well here: http://blog.kld.com/kld/president-obama-limits-salaries-at-bailed-out-banks-investors-to-seek-say-on-pay-at-100-corporations-in-2009/

According to the AFL-CIO, in 2008 the average compensation package for a S&P 500 CEO was $10.9 million.  A short look at each company shows a wide range around this average from only a few million upwards of more than 20 million.  I will be the first to admit that $20 million is a huge sum no matter what job you are doing.  Before we go crying off to big brother though, maybe we should take a look at just how much that really is and where all that money comes from.

In 2007, the CEO of Boeing Aircraft made about $14 million.  That same year, Boeing made about $4 billion in total profits.  I’ll let you do the math, but as a percentage of company profits, $14 million is not very much.  This is only one example, but I am sure the same holds true for most other Fortune 500 companies.  A company that makes a lot of money can afford to pay the big bucks to the guy with all the responsibility.  Now, setting aside the whole total CEO pay issue, lets look at what those CEO’s make compared to their employees.  After all, if a company is making enough to pay the CEO the big bucks, then the average employee pay should go up as well right?  Well, not necessarily true as it turns out and this is where the real injustice is in my opinion.

In 1965, the average CEO of a large company made about 24 times what the average worker earned.  By 2007, CEO pay had risen to 275 times that of an average worker.  Over the last 40 years, we have seen the emergence of a class of top level managers who demand, and get far more in compensation than they rightfully deserve.  Right or wrong, this is where we have found ourselves and I believe we can emerge from the other end looking much better without government intervention.  More and more shareholder groups are starting to hold CEO’s accountable and reducing benefits packages.  Keep in mind that the largest increases in CEO pay have taken place over the last ten years as this class of managers matured and took root.  Most of these high paid execs are in their 60′s and likely will not be working much longer.  Maybe if we cut their pay a little we can entice them to go ahead and retire and get out of the way.

Rich

White House vs Fox News

So it appears the White House administration is not very pleased with Fox News’ coverage of them and their policies.   Somehow, I seriously doubt that this is the first time that a political entity has felt that a segment of the press was not on the same page as them idealogically.   I am also fairly certain that this is not the first time an administration has made disparaging remarks about that segment of the press.  So what is different this time around?   The difference this time around is that a growning number of people are not only paying attention to what that segment of the press is saying, but are actually taking action based on that “News”.

The White House asserts that Fox is unfairly slanted to the right.  FOX acknowledge that many of their opinion based shows are conservative in nature, but their news segments remain completely unbiased.  To be honest, I do not watch enough of FOX News to be able to make a good judgement call in this one.  The few times I have watched FOX news, I have noticed that the news is delivered mostly from a conservative perspective but does not seem to be slanted in any specific direction.  I did watch FOX more than usual during the recent campaigns and noticed as many negative stories about Senator McCain as I did then Senator Obama.  Even so, if their news program are somewhat right leaning, why is the White House so upset?  Any television program has to garner ratings to stay alive and a News network is no exception.  FOX News fills an important gap that CNN and MSNBC ignored for years as they became more and more entrenched in pushing the liberal agenda.  FOX saw a need and filled it.  Based on recent ratings, this seems to be working quite well for them. As you can see in the link below, FOX is beating every other major news network by a very large margin.

http://www.mediaite.com/tv/fox-news-tops-cnn-msnbc-hln-combined-in-prime-time-monday/

The White House staff is a little upset also about the manner in which FOX conducts itself during interviews.  On a recent Sunday morning show, Chris Wallace actually had the audacity to call out a certain government administrator on certain facts.  Unlike other commentators this woman had encountered, Chris had actaully done some research prior to the interview and was ready with some difficult questions.  Wow!  Do they teach that in Journalism school or did Chris come with that idea all on his own?  White House Communications Director Anita Dunn actaully stated that she had never heard of any Sunday Morning news show host fact checking a guest.  Maybe she has been watching the wrong news shows.

The reality of it all is that people are naturally prone to fact check people that they don’t agree with.  If Anita Dunn does not want the administration to be fact checked then she should ensure she keeps her folks off of FOX and stick with more agreeable networks like MSNBC.  Again, I don’t see much of a problem with this.  If this administrattion continues to be this opaque vice transparent as they promised many months ago, they will likely find themselves looking for work like many of the rest of us in a few years.

Rich

Back to the Basics of Gun Control

First off, welcome to Chris as the second contributor to the blog!  I am sure he will have many great revelations for us and will help to tame my hard right leaning tendencies.  I am currently looking for one more contributor to add a left side point of view on things, more on that to come.  And now, a little more on gun control.

Chris and I have both mentioned various statistics in our discussions on gun control, both on this blog in other conversations amongst ourselves and other colleagues.  We have all pretty much concluded that the statistics are relatively meaningless (at least right now).  Depending on what statistics are used and how they are intrepreted, a wide variance of conclusions can be drawn.  These conclusions are invariably affected by the biases of the persons doing the interpreting.  The end result is that one really cannot prove or disprove the effectivenes of an armed population as a deterrent to crime.  I would however argue that common sense tells us that an armed and trained individual is less likely to become a victim of violent crime than the converse.  Again, this is a matter of opinion and won’t solve the issue.  For these reasons, I have decided to focus my discussions on the roots and history of firearm ownership in this country vice the current debate.

The majority of the people in the anti-gun crowd really do not grasp the basic issue at hand and continually make statements such as ”Why do you need to have a gun?”  or “The reasons the Second Ammendment was inserted just are not relevant anymore”.   In response, I have a question for all of those people who feel the need to disarm the law abiding citizens of this country – “Why do you feel the need to take our guns away?”  Yes, I know, nobody wants to take the guns away right?  Wrong.

      “Senator, If I could have banned them all- ‘Mr. and Mrs. America turn in your guns’ -I would have!”  Diane Fienstein 1995

In that statement, Senator Fienstein vocalizes the emotion that many of our elected leaders share – Fear, irrational fear.  I simply cannot believe the excuse that their desire to take away the right to bear arms is driven by a desire to lower crime.  Absolutley nothing backs that up.  We already have a plethora of laws and agencies designed to keep guns out of the hands of criminals and those who have shown that they cannot be trusted.  I must then conclude that this actually a fear of  the citizens having the means to revolt against the tyranny that they would like to impose.  That sounds a bit harsh.  I do not believe that anyone currently in any meaningful position of power intends to impose an outright tyrannical system in this country.  I cannot say that for those who will come in later generations though.  History has shown us that once we surrender a liberty to the government, we lose it forever. 

       “The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.”       Thomas Jefferson

Here is where the “Thats just not relevant anymore” argument always comes up.  Those who use this quote (or any of the dozens of other Founding Father quotes that say the same thing) are labeled as fear mongers and anarchists.  As I said before, I don’t think the current sate of our government will result in tyranny, but what of 50 years from now?  100 years?  Does it really matter how long it will take?  I believe we owe it to our children and grand-children to preserve for them the ability to prevent just such a thing from happening.

 I know that I said earlier we could not trust statistics, and I still stick to that statement for the most part.  I do want to leave you with this interesting tidbit though:  In New York City, Mayor Bloombergs push to rid the streets of illegal guns was widley hailed in liberal circles as a success.  In fact, the number of guns recovered from crime scenes did drop by 13% and the number of people shot to death dropped from 347 in 2007 to 292 in 2008.  The only problem with this whole line of thought is that from 2007 to 2008, the OVERALL murder rate in NYC increased due to an increase in knife related homicide.  Sounds like a murder problem and not a gun problem to me.

Rich

Response to “A few thoughts…” post by Rich

Hey all, Rich invited me to be a contributor and so I will start by commenting on Rich’s post.

In this I agree, but it goes far beyond gun control.  Left and right both use tragedies and accidents to further their agendas.  This is opportunistic and has been going on in some way shape or form since the Agricultural Revolution thousands of years ago.  This is an issue of human nature, those we agree with can do no wrong until they go off message, and those we oppose can’t seem to get anything right, no matter how much we may agree with them.

Gun control just happens to be the issue of the day, situations such as the shootings at Columbine and Virginia Tech had arguments on both sides.  Those that want stricter gun laws cited the types of guns used, the ease of access and the overly violent video games that ‘desensitize’ today’s youth  to the violence demonstrated.  Those that oppose gun laws cried about restrictions against possession of guns and lack of concealed-carry permits by staff and teachers that could have resolved the situation more quickly or may have deterred the violence in the first place.

Both sides choose extremes when the actual resolution needs to be somewhere in the middle.  Both sides are opportunistic and will weigh in on articles such as the one Rich started from, but both will continue to miss the mark.  The second Amendment states: ” A well regulated Militia, being necessary to the security of a free State, the right of the People to keep and bear Arms, shall not be infringed.”  This is the most hotly contested part of the Constitution but its origin comes from Section 13 of the Virginia Declaration of Rights 1776, originally drafted by George Mason, which states: “That a well-regulated militia, or composed of the body of the people, trained to arms, is the proper, natural, and safe defense of a free state; that standing armies, in time of peace, should be avoided as dangerous to liberty; and that in all cases the military should be under strict subordination to, and governed by, the civil power.”   For one reason or another the drafters of the Bill of Rights left out much of the language, and they made few statements as to why.  George Mason’s thinking is clear in that those trained with arms should be allowed to carry guns, a Militia would be a step up, but private citizens should still be allowed to protect themselves and provide for the common defense of their State.

Rich is right in that those that fail to recognize social norms should not be reduced to ‘crazy’ or ‘nut job’ because they are exercising their rights.  But the argument lacking in his statement ignores the common sense restrictions that should be put into law.  Licensing should include mandatory demonstrations of competency and training, and restrictions against assault rifles and any weapon that can be configured for fully automatic operation should be denied the public, but hunting weapons and handguns have a very valid purposes within our society.    The strongest opposition to these policies should be the strongest proponent for responsible gun ownership and practical legislation but the NRA has argued that this is a ‘slippery slope’ to hand away all gun rights and I am sick of that position.  This is the position of everyone that cannot think of a cogent argument that is based upon substance…fear of what may come.  Get off your high horse and see the world that we live in, there is no legitimate justification for assault rifles in the hands of a private citizen, nor is there any valid argument to suggest that required training for a  license shouldn’t be implemented.  We require it for anyone operating a motor vehicle which has more uses than killing something or someone. (Guns don’t really have any other purpose, we can claim they do, but at their core, their design is to do just that, kill.)

But lets be clear here, the majority of gun related violence comes from those that obtain weapons illegally, and the incidents of domestic violence that end in gunfire would still be played out with similar ends, with or without a handgun, those situations just don’t get sensationalized.  Many of us recognize the potential harm that a gun represents, we can also recognize the inherent usefulness in these tools in regards to hunting and home defense, but at some point we need to acknowledge that there are some people that should not have guns, and there are some guns that no one but those trained and working in an organized unit, be it police or military, should have.  Until we can all acknowledge that we cannot move forward and make any real strides that will guarantee the rights protected by the Constitution while providing us with common sense policies designed to protect the public from those that would do wrong.

Chris

A Few Thoughts on Gun Control and Gun Ownership

I have been pondering a gun control post for awhile now and a recent news article has prompted me to go ahead and broach the subject.   Combined with the fact that I am just about sick to death of talking about health care, this story really got me to thinking hard about responsible gun ownership in general.

http://www.nydailynews.com/news/national/2009/10/08/2009-10-08_guntoting_pa_soccer_mom_husband_found_shot_dead_in_apparent_murdersuicide.html

This whole story raises many, many questions and is going to be used heavily by the anti-gun left (it already is).  The point I want to make is that we can not take one isolated incident, sensationalize it and use it as an example of why firearms should be any more tightly controlled than they already are.  The fact remains that this was a domestic violence issue.  Simply because the woman who died was previously in the news toting a gun to a soccer game (within her legal rights in that state by the way) is no reason to point to her death as an example of how “crazy” handgun proponents are.  Granted, wearing a gun on your hip to a kids soccer game my show a poor grasp of social norms, this does not make the woman crazy.  The use of a legally owned handgun against another person in anything other than self-defense is still exceedingly rare, even in states with very loose gun control.  I am not going to delve into the statistics in this post, for now please feel free to look at the link below.  The data is from the Department of Justice and is not biased in any way for or against gun control.

http://www.ojp.usdoj.gov/bjs/guns.htm

I’ll dig a little deeper into the stats in my next post.  For now, I should probably get back to work!

Welcome!

Hey everybody!

So I haven’t really had the time or the energy to rant about anything lately but I will soon.  I have a few topics rolling around on the waves of my brain and I will try to get them here over the next few days.  I am still playing around with WordPress so the look and content will be changing frequently over the next few days.  Any suggestions would be greatly appreciated!  You will notice several test posts which I will eventually get around to deleting.  If I change or remove something and you think I should have left it, please let me know!  Keep checking back!

Rich

And one for the Center

Center Category???

About Categories

Making a couple of posts just to make sure the categories show correctly….

Some Testing going on here!

Checking the categories….

Hello All!

So the blog is up at last. Don’t expect to see too much yet while I play around and get everything the way I want it. I am using WordPress, got a book and it does a lot more than I thought!!!

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