Comment on Fear of cheap Chinese EVs spurs automaker dash for affordable cars
Holyhandgrenade@lemmy.world 9 months agoI hate it when corpos use the “oh we can’t lower prices because our staff is getting paid too much”-narrative. What about the CEO who takes half the profits for himself?
alvvayson@lemmy.world 9 months ago
The sad fact of the matter is… math
A corporation might have 10 C-level guys dividing $50 million amongst themselves and 10.000 workers earning $70K, which costs about $100K due to overheads (health insurance, retirement, etc). Together, that’s a billion, which is 20x more than the C level guys.
The C level guys aren’t the big expense, not by a long shot.
Labour, government and shareholders divide most of the earnings amongst themselves.
For the record, I do think we need to tax the wealthy more and the workers less.
Viking_Hippie@lemmy.world 9 months ago
Without the workers there’s no product, no income. The C-suite is dispensable. The workers aren’t.
Besides, worker productivity has been skyrocketing for the last 50 years, as has cost of living, but worker wages have been stagnant. C-suite pay has kept up with the increase in productivity, though, if not outpaced it.
alvvayson@lemmy.world 9 months ago
I have no disagreement on this argument.
But C-suite compensation is not a significant part of prices.
Energy prices, tax, labour costs and the cost of capital (i.e. returns to shareholders and creditors) are what drives prices.
Viking_Hippie@lemmy.world 9 months ago
Fixed that for you. They’re raking it in while blaming it on everything except their own profiteering. It’s greedflation , pure and simple.