CEO’s in the oil and defense industries are making out like profiteering bandits. Wages for American workers are declining while their productivity is rising. Recent polls show that workers feel pessimistic about their economic prospects. And a new US Census Report reveals growing poverty, especially among children.
Happy Labor Day.
The 13th annual “Executive Excess” report from the Institute of Policy Studies (IPS) and United for a Fair Economy indicates that “the CEO’s at the top 34 military contractors have enjoyed average paychecks that are double the compensation they received in the four years leading up to 9/11.”
George David, CEO of United Technologies – the maker of the Black Hawk helicopter – pocketed $200 million since 9/11, explaining, “Obviously, military was a big bang for us in the post-September 11 period.” UTC is currently suing the Pentagon to stop the release of documents pertaining to Black Hawk quality-control problems.
These 34 defense CEO’s have been paid nearly $1 billion since 9/11. As soldiers have made the ultimate sacrifice for our nation, the average army private earns $25,000 per year while the average defense CEO makes $7.7 million.
As IPS’s Sarah Anderson writes, “Imagine how it must feel to be risking your life every day on the front lines in Iraq, knowing that military contractors are getting grotesquely rich in the comfort of their executive suites? No wonder we’re seeing the US Marine Corps having to force their reservists back to the battlefield.”
Derrick Jackson of the Boston Globe concludes, “There is no evidence of a [defense] contractor having a soul in the 13th annual Executive Excess CEO survey….”
The oil barons are also enjoying the spoils of our energy crisis. Last year they averaged $32.7 million in compensation, 518 times more than the average oil worker. Chuck Collins and Eric Benjamin write, “Big Oil CEO’s should be held to account for their failure to dedicate their mountains of excess cash toward seeking new energy sources that move us beyond fossil fuels.”
But the fact is that what is happening in the numb-to-greed defense and oil industries is not dissimilar to the rest of our economy. According to the Washington Post, “the top fifth of American households received 50.4 percent of all income last year, the highest proportion since 1967, when the census bureau started following that trend. The biggest gains were concentrated in the top five percent.”
Steven Greenhouse and David Leonhardt write in the New York Times that “wages and salaries now make up the lowest share of the nation’s gross domestic product since the government began recording the data in 1947, while corporate profits have climbed to their highest share since the 1960’s.”