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Posts Tagged ‘Craig Jelinek’

In 2012, news that wasn’t published hardly at all included the fact that Costco’s CEO Craig Jelinek decided that redistributing income from his employees to his shareholders by cutting wages was not good for the employees or for the shareholders. Wall Street was pressuring him to do exactly that (Click here for the story from http://www.zdnet.com). This was in spite of the fact that Costco’s closing share price hovered slightly below $39 a share in March 2009 and had risen to over $90 a share in March 2012.

That higher wage strategy seems to have worked beautifully. Costco’s share price has been steadily rising, and it closed at $177 on March 2 2017. Wall Street was proven wrong–again.

The truth is simple. When you have a massive income redistribution from the 99 to the 1 percent via federal legislation, as in the last thirty-seven years, you have a government and an economy that are sick with massive corruption. Costco has opted out of that business model. Thirty-six years ago, the 1 percent took home about 8 percent of the nation’s income, now it’s over 30 percent and growing, and it’s been stolen from the rest of us. Thirty-six years ago, the 1 percent owned 7 percent of the nation’s wealth, now they own over 40 percent, and it’s growing at the expense of us all. However, when the latest stock market bubble bursts, and it will, much of that wealth will evaporate.

 

This is why the current economic expansion is long, but historically weak by virtually all measurements, despite a bigger gross domestic product, greater worker productivity and larger population than in years past. Demand should be robust compared to decades ago, but it instead remains comparatively lackluster. That is because the income of the 99 percent has been redistributed to the 1 percent, leaving the rest of us insufficient money to boost this economy in the manner of the past.

It’s time to put a little more balance in the economy by following the Costco model. The government has redistributed income from the 99 to the 1 percent via free trade treaties, privatization scams, corporate welfare and other means. It’s time for the government to move in the opposite direction on behalf of all of us, not just the rich.

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“President Barack Obama wants to raise the federal minimum wage to $9 per hour. And the CEO of one of America’s largest retailers says such a move would be good for workers and businesses alike. In fact, he says raise it even more.

On Tuesday, Costco CEO and President Craig Jelinek came out in support of the Fair Minimum Wage Act of 2013, which aims to raise the federal minimum wage to $10.10 per hour, then adjust it after that for inflation.”

Jelinek argues raising the minimum wage will be good for the economy. In other words, he’s saying that if people earn more money, they’ll purchase more stuff. That will spur economic growth and create jobs. As it stands, the Dow Jones Industrials has hit a record high. That actually destroys the economy.

More and more money has been diverted to the ultra rich who own the federal government, using such things as privatization scams and free trade treaties that redistribute income from the 99 to the 1 percent. The result is simple. The 99 percent earn roughly 68 percent of all income produced in the United States, compared to 92 percent back in 1980, when the economy was much stronger because the demand for goods and services was way stronger.

The economy continues to sputter on its way to banana republic status. The rich are using their drones in public office, such as Wall Street Senator Ron Wyden, to pass legislation that continues to redistribute (steal) more and more income from the 99 percent and redistribute it to the 1 percent.

Therefore, Jelinek is correct. A minimum wage increase will help the economy, but it will divert a tiny bit of money away from those record corporate profits that have pushed the Dow Jones Industrials to record highs and that are destroying the economy in the process.

Click the link below for more on the story.

Costco CEO: Raise The Minimum Wage To More Than $10 Per Hour

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