Obama and Friends Discover Inequality
By Jack Rasmus | January 28, 2014
Today, January 28, 2014, President Obama will address the nation in his State of the Union (SOTU) speech to Congress. A major theme of the address will be the growing income inequality in the US.
His speech represents an echo of similar themes and talks that have been presented this past week at the World Economic Forum (WEF) in Davos, Switzerland. That’s where every January the big capitalists of the world gather to discuss amongst themselves the major issues of the past year and what to do about them—in between being entertained by various cultural celebrities and performers who have been allowed into their club as junior partners in wealth. The annual Davos cultural events are not unlike the small venue side-shows held in the big Las Vegas casinos: the entertainers strut and sing while the real betting and dice-rolling discussions involving future capitalist policy initiatives go on behind ‘invitation-only’ doors requiring tickets for entry costing hundreds of thousands of dollars to attend ( the typical ticket price of entry for a Corporate CEO and his entourage at Davos, for example, exceeds $500,000).
This year the WEF and global capitalists have ‘discovered’ income inequality, now accelerating and intensifying worldwide to a dangerous degree, and especially in the US. The dimensions of the inequality problem have grown so severe in recent years it may, they themselves are now warning, result in unwanted ‘social unrest’ in the near future.
Now that it has become an ‘acceptable’ discussion theme, Obama and Democrat party politicians (and a few clever Republicans) have also discovered income inequality. Together they plan to raise the rhetoric on the topic in upcoming midterm and 2016 national elections. Therefore, in Obama’s SOTU speech today we’ll hear some basic facts about the problem, some vague proposals that are never intended get to the earliest legislative stages, and a lot of general talk about how improving ‘opportunity’ is the only answer to reducing inequality—all of which means let’s not do anything significant in the short run but instead focus on very long run solutions like improving childhood education, creating long run opportunities, and other very long term solutions.
The politicians’ new discovery of inequality follows liberal academics discovery of the same in recent years. Well known fellows like Paul Krugman, Robert Reich, Joe Stiglitz, James Galbraith and others have all written their books on the topic in recent years. But they too, like the politicians they support, have been very careful about recommendations for resolving the problem, mostly repeating time-worn, mushy old liberal proposals involving ‘education and opportunity’ once again.
The growing income inequality in the US goes back at least to the late 1970s, accelerating during the 1980s and early 1990s, and then again after 2000 under George W. Bush. It’s grown the worst under Barack Obama, with latest figures showing the wealthiest 1% households accruing for themselves since 2009 nearly all (more than 90%) of all the income gains during the so-called ‘recovery’.
More recent, damning revelations about the extent of growing inequality go back to 2002 at least—long before the politicians and the more well known liberal economists acknowledged it. In 2002 University of California, Berkeley economist, Emmanuel Saez, began publishing his analyses of IRS income data, since all pre-existing sources of income inequality by the government and business more or less obfuscated the true picture. Saez has updated his ground-breaking results periodically ever since. Most of what is reported and published about the income gains of the wealthiest 1% are from his researches.
This writer relied heavily on Saez’s data in his 2004 book, ‘The War At Home: The Corporate Offensive From Ronald Reagan to George W. Bush’, which attempted to identify the various policies since the late 1970s that have been largely responsible for the inequality shift that Saez so well documented in 2002. Saez’s hard data—then and ever since—is irrefutable. However, the political implications behind Saez’s data were not spelled out, except for some suggestions concerning the tax structure.
But Income inequality in the US is no accident. It has conscious, deliberate origins, to be found in the policy initiatives of corporate America since the late 1970s, and the willingness of the politicians Corporate America elects in Congress, Presidents, and at State levels—Democrat and Republican alike—to implement those policy initiatives.
There’s the tax restructuring in favor of the rich and their businesses, the free trade and offshoring, the atrophying of the real minimum wage, the dismantling of real pensions and employer contributions to healthcare, the shift from full time permanent jobs to part time and temp work, the destruction of unions and higher paying union jobs, the displacing of higher paid jobs with technology, substitution of credit for lack of wage growth, failure to invest in the US by corporate America, so on and so on. That’s why jobs, real wages, and incomes for the vast majority of American households has stagnated at best, and declined in real terms for most. That’s why wage earners’ income of the bottom 80% households have contributed to income inequality.
But all that’s still only half the story of income inequality. The other ‘half’ of the story is why the incomes of the 1% have risen so sharply as well. Both their rise, and the stagnation-decline of the bottom 80%, are jointly responsible for the income inequality.
Corporate America and their politicians, and the policies they’ve initiated and implemented, are responsible for the accelerating capital incomes of the rich (1%), very rich (0.1%), and mega-rich (0.01%). And much of that has to do with the enabling of financial asset speculation and financial securities inflation that has been the defining characteristic of the US (and global) economy since at least the 1980s. Reagan unlocked that door. Clinton opened it. And George W. kicked it in. And Obama has done nothing to repair the entry.
Real solutions to income inequality would have to include proposals not only to enable the recovery of incomes of the middle working class, and the working and non-working poor, but would have to include proposals to reign in the runaway income accumulation of the very rich, the mega-rich and their friends. But you won’t hear the latter even suggested in Obama’s SOTU speech. What you’ll hear are token long run proposals to slow the decline in income growth for the working poor perhaps, and a lot of vague suggestions about the middle class.
What the middle class needs is decent jobs and tens of millions of them, just to restore what has been lost in the past 15 years. There are still 20 million unemployed in the US, and more than 5 million more have left the labor force. 60% of the jobs that have been created since 2009 have been low paid, while 58% lost have been high paid. Retirement systems are broken and retirees income for tens of millions are in freefall. Obamacare has meant those with insurance now have to pay more for less. Tens of millions of students are effectively indentured and can’t find jobs. If Obama and his politicians want to do something about income inequality, let’s hear concrete legislative proposals to address these issues now, immediately, in the short run.
It took the Krugmans, Reichs, and Stiglitzes only a decade to ‘discover’ their academic colleague, Saez’s, significant work. Better late than never, I suppose. However none of the liberal economists bother to point the finger at the politicians responsible, especially their Democratic party friends, for the inequality trends. But if anything serious is going to be done about income inequality in the US, it will have to include not only real, short term solutions to raise the incomes of the many but also serious, real measures to take back the excessive income gains of the rich and super-rich as well. For the latter will be necessary to fund and restore decent jobs and wages, to revitalize a crumbling retirement system, to save a collapsing healthcare system, and, yes, even to provide affordable education opportunities for all.

Obscene wealth: World’s 85 richest have same wealth as 3.5 billion poorest
RT | January 20, 2014
The world’s 85 wealthiest people have as much money as the 3.5 billion poorest people on the planet – half the Earth’s population. That’s according to Oxfam’s latest report on the risks of the widening gap between the super-rich and the poor.
The report, titled “Working for the Few,” was released Monday, and was compiled by Oxfam – an international organization looking for solutions against poverty and injustice.
The document focuses on the extent of global economic inequality caused by rapidly increasing wealth of the richest people that poses the threat to the “human progress.”
A total of 210 people became billionaires last year, joining the existing 1,426 billionaires with a combined net worth of $5.4 trillion.
“Instead of moving forward together, people are increasingly separated by economic and political power, inevitably heightening social tensions and increasing the risk of societal breakdown,” the report stated.
Also, according to the Oxfam data, the richest 1 percent of people across the globe have $110 trillion, or 65 times the total wealth of the bottom half of the planet’s population – which effectively “presents significant threat to inclusive political and economic systems.”
“It is staggering that, in the 21st century, half of the world’s population — that’s three and a half billion people — own no more than a tiny elite whose numbers could all fit comfortably on a double-decker bus,” Oxfam chief executive Winnie Byanyima told a news conference.
And the number of the rich is steadily growing: for example, in India the number of billionaires skyrocketed from six to 61 in the past 10 years, and their combined net worth is currently $250 billion.
The report comes ahead of the World Economic Forum in Davos which begins later this week, and urges the world leaders to discuss how to tackle this pressing issue.
Among the solutions presented by Oxfam are measures to avoid tax dodging and using economic wealth to pressure governments, looking for political benefits. Also, the organization calls for “making public all the investments in companies and trusts for which they are the ultimate beneficial owners,” as well as “challenging governments to use tax revenue to provide universal healthcare, education and social protection for citizens.”
Oxfam also said that there are many laws that favor the rich, which were lobbied for in a “power grab” by the world’s wealthiest people.
Since the late 1970s, tax rates for the richest have fallen in 29 out of 30 countries for which data are available, according to Oxfam.
“A survey in six countries (the US, UK, Spain, Brazil, India and South Africa) showed that a majority of people believe that laws are skewed in favor of the rich,” the report said.
For instance, almost 80 percent of the Spanish and the Indians, as well as over 60 per cent of the US and the UK residents, either agree or strongly agree that “the rich have too much influence over where this country is headed.”

James Hansen’s Policies Are Shafting The Poor
By Willis Eschenbach | Watts Up With That? | March 15, 2013
I was reading an interview with Adrian Bejan (worth taking a look at), and I got to musing about his comments regarding the relationship between energy use and per capita income. So I pulled up GapMinder, the world’s best online visualization software. Here’s a first cut at the relationship between energy and income.
Figure 1. Energy use per person (tons of oil equivalent, TOE) versus average income, by country. Colors show geographical regions. Size of the circle indicates population. The US is the large yellow circle at the top right. Canada is the overlapping yellow circle. China is the large red circle, India the large light blue circle. Here’s a link to the live Gapminder graph so you can experiment with it yourself.
Clearly, other than a few outliers, the relationship between energy use and income is quite straightforward. You can’t have one without the other. Well, that’s not quite true, you can have energy without income. You can have (relatively) high energy use without having the corresponding income, plenty of Africa is in that boat. But the reverse is not true—you can’t have high income without high energy use. You need the energy to make the income.
Now, James Hansen is the NASA guy who is leading the charge to stop all forms of cheap energy. Coal is bad, terrible stuff in his world. He calls trains of coal “death trains”. He wants to deny cheap energy to all of those folks in the bottom half of the graph above. Well, actually, he wants to deny access to cheap energy to everyone, but where it hurts is the bottom half of the graph. For example, the World Bank and other international funding agencies, at the urging of folks like Hansen, have been turning down loans for coal plants in developing countries.
But as you can see, if you deny energy to those folks, that is the same as denying them development. Because when there’s less energy, there’s less income. The two go hand in hand. So what James Hansen is advising is that we should take money from the poor … actually he wants to deny them cheap energy, but that means denying them income and the development that accompanies it.
A look at the history of some of the countries is instructive in that regard, to see how the income and the energy use have changed over time. Figure 2 shows the history of some selected countries.
Figure 2. A history of selected countries. Colors now show crude birth rate (births per thousand)
Now, this is showing something very interesting. It may reveal why Hansen thinks he’s doing good. Notice that for countries where people make below say $20,000 of annual income, the only way up is up and to the right … which means that the only way to increase income is to increase energy use. Look at India and China and Brazil and Spain and the Netherlands as examples. (Note also that crude birth rate is tied to increasing income, and that the crude birth rate in the US has dropped by about half since 1960.)
Above that annual income level of ~ $20,000, however something different happens. The countries start to substitute increased energy efficiency for increased energy use. This is reflected in the vertical movement of say the US, where the 2011 per capita energy use is exactly the same as the 1968 per capita energy use. And Canada is using the same energy per person as in 1977 … so let’s take a closer look at the upper right section of the chart. Figure 3 shows an enlargement of just the top right of the chart, displaying more countries.
Figure 3. A closeup of Figure 2, showing more countries. Start date is 1968 for clarity.
Now, this is interesting. Many, perhaps most of these countries show vertical or near vertical movement during the last twenty years or so. And the recent economic crash has caused people to be more conservative about energy use, squeezing more dollars out per ton of oil equivalent.
But that only happens up at the high end of the income spectrum, where people are making above about twenty or even twenty-five thousand dollars per year. You need to have really good technology to make that one work, to produce more income without using more energy. You need to be in what is called a “developed” nation.
When people think “development”, they often think “bulldozers”. But they should think “energy efficiency”, because that is the hallmark of each technological advance—it squeezes more stuff out of less energy. But you have to be in an industrialized, modern society to take advantage of that opportunity.
So this may be the reason for Hansen’s attitude toward energy use. He may not know that most of the world is not in the situation of the US. This may be the reason the he claims that we should curtail energy use by all means possible. He may not see that while the US and industrialized countries can get away with that, in part because we waste a lot of energy and have a lot of both money and technology, the poor and even the less well off of the world have little energy or money to waste.
For those poorer countries and individuals, which make up the overwhelming bulk of the world’s population, a reduction in energy use means a reduction in the standard of living. And the part Hansen and his adherents don’t seem to get is that for most of the world, the standard of living is “barely” … as in barely making ends meet.
As is usual in this world, the situation of the rich and the poor is different, and in this case the break line is high. Twenty grand of income per year is the line dividing those who can take advantage of technology to get more income with the same energy, and the rest, which is most of the world. Most of the world are still among those who must use more energy to increase their income. They don’t have the option the US and the developed nations have. They must increase energy use to increase income.
And when you start jacking up energy prices and discouraging the use of cheap energy sources around the planet, as Hansen and his adherents are doing, the poorest of the poor get shafted. James Hansen is making lots and lots of money. He’s comfortably in the top 1% of the world’s population by income, and he obviously doesn’t give much thought to the rest. We know this because if he thought about the poor he’d realize that while he is mouthing platitudes about how he’s doing his agitation and advocacy for his grandchildren’s world in fifty years, what he’s doing is shafting the poor today in the name of his grandchildren. Of course Hansen is not the first rich white guy to do that, so I suppose I really shouldn’t be surprised, but still …
Increased energy prices, often in the form of taxes and “cap-and-trade” and “renewable standards”, are THE WORLDS MOST REGRESSIVE TAX. Hansen proposes taxing the living daylights out of the poor, but he won’t feel the pain. He can stand a doubling of the gas prices, no problem. But when electricity and gas prices double around the planet, POOR PEOPLE DIE … and Hansen just keeps rolling, he has quarter-million-dollar awards from his friends and a fat government salary and a princely retirement pension you and I paid for, he could care less about increased energy prices. He’s one of the 1%, why should he pay attention to the poor?
Forgive the shouting, but the damn hypocrisy is infuriating, and I’m sick of being nice about it. James Hansen and Michael Mann and Gavin Schmidt and Phil Jones and Peter Gleick and the rest of the un-indicted co-conspirators are a bunch of rich arrogant 1%er jerkwagons who don’t care in the slightest about the poor. Not only that, but they’ve given the finger to the rest of the climate scientists and to the scientific establishment, most of whom have said nothing in protest, and far too many of whom have approved of their malfeasance.
Their patented combination of insolent arrogance and shabby science would be bad enough if that was all they were doing … but they are hurting poor people right now. Their policies are causing harder times for the poor today, as we speak … and they mouth platitudes about how they are saving the poor from some danger they won’t see for fifty years?
If you ask the poor whether they’d rather get shafted for sure today, or possibly get shafted in fifty years, I know what they’d tell you. To me, hurting the poor today under the rubric of saving them in half a century from an unsubstantiated and fanciful danger is moral dishonesty of the first order.
So let me say to all of you folks who claim the world is using too much energy, you have the stick by the wrong end. The world needs to use MORE energy, not less, because there is no other way to get the poor out of poverty. It can’t be done without cheap energy. We need to use more energy to lift people out of bone-crushing poverty, not use less and condemn them to brutal lives. And to do that, energy needs to be cheaper, not more expensive.
Let me be crystal clear, and speak directly to Hansen and other global warming alarmists. Any one of you who pushes for more expensive energy is hurting and impoverishing and killing the poor today. Whether through taxes or cap-and-trade or renewable subsidies or blocking drilling or any other way, increasing energy costs represent a highly regressive tax of the worst kind. And there is no escape at the bottom end, quite the opposite. The poorer you are, the harder it bites.
So please, don’t give us the holier-than-thou high moral ground stance. Spare us the “we’re noble because we are saving the world” BS. When a poor single mother of three living outside Las Vegas has her gas costs double, she has little choice other than to cut out some other essential item, food or doctor visits or whatever … because her budget doesn’t have any of the non-essential items that James Hansen’s budget contains, and she needs the gas to get to work, that’s not optional.
For her, all her money goes to essentials— so if gas costs go up, her kids get less of what they need. You’re not saving the world, far from it. You’re taking food out of kids’ mouths.
You are causing pain and suffering to the poor and acting like your excrement has no odor … but at least there is some good news. People are no longer buying your story. People are realizing that if someone argues for expensive energy, they are anti-human, anti-development, and most of all, without compassion for the poor. They are willing to put the most damaging, regressive, destructive tax imaginable on the poorest people of the planet.
Now those of you advocating for higher energy prices, after reading this, you might still fool the media about what you are doing to the poor. And it’s possible for you to not mention to your co-workers about the real results of your actions. And you could still deceive your friends about the question of the poor, or even your wife or husband.
But by god, you can no longer fool yourself about it. As of now, you know that agitating for more expensive energy for any reason hurts the poor. What you do with that information is up to you … but you can’t ignore it, it will haunt you at 3 AM, and hopefully, it will make you think about the less fortunate folk of our planet and seriously reconsider your actions. Because here’s the deal. Even if CO2 will damage the poor in 50 years, hurting the poor now only makes it worse. If you think there is a problem, then look for a no-regrets solution.
Because if you truly care about the poor, and you are afraid CO2 will increase the bad weather and harm the poor fifty years from now, you owe it to them to find a different response to your fears of CO2, a response that doesn’t hurt the poor today.
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NY Police Chief Kelly Taking $1.5 Million Worth Of Publicly-Funded Bodyguards With Him When He Retires
By Tim Cushing | Techdirt | December 10, 2013
New York City Police Chief Ray Kelly has spent years defending the harassment of minorities via the PD’s stop-and-frisk program. Kelly (and Mayor Bloomberg) have constantly pointed to the decline in violent crime stats as evidence the program works (and as justification for its unconstitutional aspects).
But the city must not be safe enough. Ray Kelly’s retiring, but he won’t be doing it unaccompanied. According to police sources, Kelly will be taking a small battalion of personal bodyguards with him wherever he goes, post-employment.
The NYPD’s Intelligence Division — with Kelly’s input — is recommending that Kelly take with him a 10-officer complement of taxpayer-funded bodyguards, up from the six-officer detail the commissioner had wanted last month.
The detail will now include a lieutenant, three sergeants and six detectives to chauffeur and protect Kelly and his family around-the-clock in the Big Apple and even out of town after he ends his 12-year run atop Police Headquarters — at an estimated cost of more than $1.5 million a year, sources estimate.
This does seem excessive, especially considering Kelly will be retiring far from the mean streets, not heading to prison. In fact, he doesn’t personally put people behind bars, so it’s not as though he’d be much more than a symbolic target in the big house.
On the other hand, spending a decade deploying (and championing) a questionable program that gives NYPD officers the right to stop anyone (almost exclusively minorities) for any reason didn’t exactly make Kelly a whole lot of friends. If an investigator was to ask whether anyone had a motive for doing something horrible to ex-Chief Kelly, the list of suspects would probably rival the New York City phone book.
But that’s also an abstraction. The streets won’t be less safe once Kelly steps down. They’ll be roughly the same as they are now. Unless Kelly’s already traveling with an armed entourage, there’s really no reason he’d be less safe once retired. If anything, no longer being the figurehead of the NYPD should make him safer.
Supposedly, the Intelligence Division has some solid reasoning backing up this decision. According to information dug up by Matt Sledge at HuffPo, Ray Kelly has every reason to fear for his life.
[T]his May 17 declaration from Deputy Commissioner David Cohen in one of the NYPD surveillance lawsuits may provide some insight on the perceived threats to Kelly’s safety.
After the officers who shot Sean Bell were acquitted, Cohen wrote, surveillance was ramped up citywide “in response to the possibility of unlawful activity and allowed for informed decision-making on the likelihood of violence or other unlawful activity, as well as resource deployment decisions.”
“The shooting and subsequent trial sparked demonstrations across New York City and widespread threats of violence against members of the NYPD, including Police Commissioner Kelly, who was the target of a murder plot motivated by the Sean Bell matter,” Cohen wrote.
Frightening, except for the fact that Kelly’s stalking death threat came in the form of a person not much suited for stalking/death-dealing. (Nor was he in the position to front the $65,000 needed to send a more able-bodied person to do the job.)
Sounds pretty serious. Until you learn who was behind the 2007 “plot”: a 400-pound, imprisoned, impoverished wheelchair-bound “mentally ill” man with a rap sheet the length of your arm.
As it stands now, Kelly will leave office with more bodyguards than any previous police chief since Howard Safir’s retirement in 2000. Safir took 12 bodyguards with him, citing “vague threats.” (Presumably, the same “vague threats” law enforcement and security agencies have used to weaken policies and expand power over the past decade-plus…) Not only that, but he’ll be one of the few allowing the city to pick up the tab for post-career protective services.
True, this $1.5 million will be a drop in the bucket considering the size of NYC’s budget, but considering the fact that Ray Kelly seems intent on making himself the sort of example other police chiefs shouldn’t follow post-retirement, this should probably be opposed on sheer principle. Or, at the very least, his request should be trimmed down to a more reasonable number of bodyguards.
If Kelly’s made an enemy of the people, there’s really no one else he can point the finger at. If this means he’ll be living in fear for the rest of his retirement, maybe he’ll develop a bit of empathy for the thousands of minority citizens who have been harassed repeatedly over the last decade under the color of law.
Pakistani man sues US over false arrest
Press TV – December 6, 2013
A Pakistani immigrant has filed a lawsuit against the US government in a federal court in Miami, saying he was kept for over ten months in solitary confinement after being falsely arrested on ‘terrorism’ charges.
Forty-year-old Irfan Khan, who immigrated to the United States from Pakistan in 1994, filed the complaint on December 3 at US District Court of Miami, Reuters reported on Thursday.
According to the lawsuit, Khan was arrested in California in 2011 on charges that included providing material support for the Pakistani Taliban.
The 40-year-old was then taken to a prison in Florida as he was also accused of supporting a plot for the abduction and murder of individuals overseas.
The lawsuit says that all charges against Khan were dropped in June 2012. However, until then he had been held for around 320 days in solitary confinement.
“I was shocked at the time. I’m still shocked. I don’t know why it happened, how it happened, and that’s why we are doing this. To get some answers,” Khan told Reuters on Thursday.
“The conduct the government subjected Irfan to, as a result of his religion, national origin, and its overzealousness in its war on terror was and still is, by all standards, horrendous,” the complaint says.
The lawsuit also accuses Washington of false arrest, incarceration and malicious prosecution.
The US government accused Khan of giving money to a commander of the Pakistani Taliban known as Akbar Hussain in 2008. However, Khan says he sent money to his wife, who was visiting Pakistan, through her uncle who is also named Akbar Hussain, a retired college professor.
The complaint also says that an impartial translator would have rejected the government’s interpretation of Khan’s telephone conversations with his father in Urdu and Pashto, which were cited by prosecutors.
The lawsuit says he criticized the Pakistani government during the two conversations but did not advocate violence, as was claimed by government prosecutors.
Khan said he lost his job and his car after his arrest. His wife and two children had to move over safety concerns.
Inequality grows as CEOs blackmail the rest of us
By Yves Engler · December 4, 2013
Last week in Switzerland big money staved off an important challenge to big paychecks. But the sentiment that spurred a Swiss effort to tie executive compensation to common workers’ wages will not be defeated so easily.
A Sunday ago Swiss voters said no to a referendum question that would have capped executive compensation at 12 times the lowest paid worker in the firm. After gaining over 130,000 signatures to put the question to voters, proponents of the initiative were overwhelmed by a flood of money claiming a ‘yes’ vote would drive companies away. Early polls found 46% of the Swiss public opposed to the 12:1 pay measure but with opponents spending up to 50 times more than the ‘yes’ campaign, 65% ultimately voted ‘no’.
According to supporters of the measure, the average Swiss CEO made 43 times the average wage in 2011, up from six times in 1984. A number of top Swiss CEOs make more than 200 times their employees’ wage.
But Switzerland’s CEO-to-worker pay differential appears socialistic compared to North America’s. After the US, Canada has the second highest CEO-to-worker pay ratio. Last year, for instance, the CEO of BCE, George Cope, received $11.1-million in compensation. This staggering sum is nearly 200 times more than what a Bell Canada technician in Toronto makes and 2,000 times the pay of an Indian call-centre worker who responds to Bell customers.
Despite making 200 times the average industrial wage, Cope was not the best-paid executive in Canada. According to the Canadian Centre for Policy Alternatives’ summary of Canada’s 100 highest paid CEOs in 2011, the $11.1 million Cope made in 2012 would have placed him just off the top 15. Incredibly, the CEO of Canadian Pacific, Hunter Harrison, took home four and a half times Cope’s pay.
In recent years the difference between regular employees’ pay and CEO compensation has grown rapidly. A recent Globe and Mail survey found that ratio has reached 122-1 at Canada’s biggest firms, up from an average of 84-1 a decade ago. Using a different set of data, the CCPA and AFL-CIO put the Canadian CEO-to-worker pay ratio significantly higher.
As a flagrant symbol of growing inequality, executive pay is increasingly facing political challenge. While the 12:1 initiative was defeated, in March more than two-thirds of Swiss voters supported a referendum question requiring companies to give shareholders a binding annual vote on executives’ pay, while outlawing bonuses to executives joining or leaving a business or as part of a takeover. Similarly, some EU officials have suggested that shareholders should be given the right to vote on the ratio between a company’s best and worst paid workers.
The French government took office last year saying it would limit executive salaries at state-controlled companies to a maximum of 20 times that of the lowest-paid employees and on Wednesday Ontario New Democrat leader Andrea Horwath called for the salaries of CEO’s at the province’s hospitals, electrical utilities and other public sector agencies to be capped at $418,000, twice the premier’s annual salary.
Politicians should legislate a maximum pay differential between the best and worst paid workers in all companies. How about a ratio of 20 times that’s steadily reduced over time?
It may be difficult, but I’m sure CEOs like Bell’s George Cope could learn to cope on a million bucks a year.
Girl smuggled into Britain to have her ‘organs harvested’
Body parts black market booming in UK
Press TV – October 20, 2013
The number of human smuggling victims in the UK has topped record levels with a girl specifically trafficked to have her organs harvested, it has emerged.
A government report exposed the case of a Somali girl trafficked into Britain, where human smugglers intended to remove her organs and sell them on the black market, the Daily Telegraph reported.
The report claims that the case is a first, but child protection charities say it is unlikely to be an isolated incident since human traffickers were likely to have smuggled a group of children into the country.
The number of victims trafficked into Britain last year spiked by more than 50 percent compared to the previous year, of whom 371 children were either used as slaves or sexually abused, said the report.
The countries from where children were trafficked included Vietnam, Nigeria, China, Bangladesh and Romania, the report said.
Child protection charities have warned that the demand for organ transplants in Britain is being exploited by criminal gangs, who snatch children from target countries and smuggle them into the UK to have their organs harvested.
“Traffickers are exploiting the demand for organs and the vulnerability of children. It’s unlikely that a trafficker is going to take this risk and bring just one child into the UK. It is likely there was a group”, said Bharti Patel, the chief executive of Ecpat UK, a child protection charity.
This comes as the World Health Organization estimates that as many as 7,000 kidneys are illegally obtained by traffickers each year around the world.
Among other organs being sold on the black market, kidneys are the most sought-after because one can be removed from a patient without any ill effects.

