It's been a great day. The Cubs beat the Cardinals, and I met some friends for a steak dinner. So, now while chilling out listening to blues and catching up with The New Yorker, I read these words in Amy Davidson's October 8 profile of GOP presidential candidate Carly Fiorina: "When HP fired her, she got a twenty-million-dollar severance package, plus fifteen thousand for career counseling. Only in this country, perhaps, could a C.E.O. receive compensation worth more than a million hundred million dollars in six years, get fired, and use the money to enter politics."
I don't believe in salary restrictions of any kind. If a company wants to pay any employee any amount, that's the company's business. At the same time, voters should be able to ask about a candidate's history and what it says about his or her potential leadership. In Fiorina's case, she laid off thousands of workers before she took the money and ran. As far as I can tell, none of her current positions would do anything to help American workers. "Only in America."
[“Sabbath” is this blog’s Sunday feature that looks beyond jobs and careers.]
The Week Ahead
This very well could be the week the U.S. government defaults on its debt. If that happens, experts say the world economy will be harmed. So why don’t Republicans in the Congress do what their predecessors have done, which is to increase the debt limit? Politics. The GOP and its Tea Party wing have become so desperate in their hatred of President Obama that they are willing to do anything to ensure that his presidency is a failure. I am not being partisan in saying this. Why did the same members of Congress – Boehner, Cantor, Ryan – raise the debt ceiling under President Bush and allow two wars and the new Medicare program to be put off the books if they cared so much about the debt and spending? The simple answer is that Republican leaders in the House only care about politics, and they see default as a path to power. They believe the public will come to blame the President for the consequences of a default, which could include an instant jump in interest rates and a quick trip back into recession.
I’m not a great fan of President Obama. He’s been too soft in all of his dealings with the Republicans. He negotiates by starting with the compromise and then giving away even more. In some way, the GOP’s action could be based on this behavior: They’re sure he will give in again. So far, the president has been steadfast in refusing to compromise, asking to be treated as other presidents have been in the past. The problem is that the current group of Republicans is unlike any politicians we have seen in their ability to invent a reality to fit their rhetoric. They are also very flexible in shifting from demand to demand, moving from healthcare to spending and now a mix of spending and social issues. Many Democrats are gloating that this is the end of the GOP. I’m not so sanguine. If their action drives a weak economy into a tailspin, neither party will benefit, at least initially. Then when the problem isn’t solved fast enough to fit a media news cycle, all blame will be shifted to Obama and the Democrats. Even if the GOP caused the problem, the Democrats didn’t fix it. This seems to be a very high stakes game of chicken. I fear there will be a very ugly crash, and it will begin later this week.
In his State of the Union speech, President Obama proposed a $9 minimum wage and that the minimum wage should be pegged to inflation. It’s great that he made this statement, but, given the GOP domination of the House, this proposal is nothing more than an act of wishful rhetoric.
It also doesn’t address the bigger problem: stagnant wages and wage cuts. One of my clients has spent 20 years in the insurance industry. Over the last seven years, her commission has been cut from 15% to 10%. If she doesn’t hit a target, it can go as low as 8%. The company she works for is very profitable (You know, one of those major corporations that pays little to know federal taxes). The industry is also profitable. So why the salary cuts? More money needs to be pushed to the top.
I think the minimum wage does need to be raised. I also believe that the government needs to do more to spur job growth. However, as long as workers are getting squeezed in what they are paid and not paid (benefits), the bigger problem will be a shrinking middle class and a larger class – the working poor. Few politicians talk about that problem, and it will impact all of us very soon.