Tomorrow We Dance To Freedom

Exorbitant Executive Compensation Perpetuates Declining U.S. Quality of Life

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After a review of the U.S. Bureau of Labor Statistics employment figures for December 2011, analysis of the wealth of information present in this report, and a compiling of trends into a comprehensive picture of the U.S. economy from many sources the below represents a picture of where we've been and where we're headed.

  • Shift away from full-time regular employment to contract labor
    • Drivers
      • Reduce overall business employment costs
      • Better match employment to demand
      • Apply savings from hiring contract labor to maintaining exorbitant executive salaries
    • Effects
      • Increased worker insecurity and instability
      • Declining product quality a direct result of gun-for-hire worker mentality
      • Workers constantly on the move now require rental properties instead of permanent housing with mortgages
  • Shift away from full-time regular employment to small business entrepreneur efforts
    • Drivers
      • Former workers opting to start their own businesses after being laid-off from full-time regular positions
      • Contract workers opting to work on a corp-to-corp basis
      • Contract workers just falling into this self-employment category because of federal tax classification
    • Effects
      • Increased worker/owner insecurity and instability
      • Health coverage is now the responsibility of worker/owner
      • Some worker/owners not in contract labor market may maintain a permanent mortgaged dwelling
      • Most new entrepreneurs are simply guns-for-hire contractors needing temporary housing in multiple geographic locations
  • Worker/Contractor real wages will continue to decline because crony capitalist environmental factors enforce unabated exorbitant executive salary increases
    • Drivers
      • Corporate boards linked into a fraternity of elite executives unresponsive to external real-world factors
      • Globally pervasive cheap, cheaper, and cheapest priced Wal-Mart mentality that enforces continued trend toward thinner margins - nothing left after executives get their cut
    • Effects
      • Declining real wages enforces vicious circle of plummeting quality and lower prices that negatively impact real wages
      • Housing prices will continue to decline - impacted by lower demand for mortgages and inability to pay existing mortgages

Generally a great shift from full-time regular to temporary employment is being driven by shorter range demand forecasts, short-term investor demands, unyielding sky-rocketing executive salaries, and a declining price expectation on the part of consumers irrespective of declining quality. All these factors contribute to our downward spiral into economic oblivion.

Overview of December 2011 BLS Employment Figures

200,000 non-farm payroll increase

Above figure is comprised of…

  • +42,000 couriers and messengers helping to deliver packages to holiday consumers
  • +28,000 retail jobs - seasonal factors were undoubtedly at play. During 2012 we'll see significant declines in retail sector jobs, a direct result of deep price discounts during the 2011 holiday season. The drive to ramp-up revenue by slashing prices to the bone irrespective of the resulting paper-thin margins will force most retailers to drastically cut spending in 2012. During the upcoming months this industry will lay-off workers in droves. Retailer's myopic focus on revenue gains means that many will be in survival mode - some will fail outright.
  • +24,000 food service - some seasonal factors at play

110,000 to 130,000 non-farm payroll increase (after adjusting for above seasonal factors)

BLS Revisions

October 2011: +12,000

November 2011: -20,000

Net change: -8,000 less jobs

Globally, all the above trends also exist if past conditions remain in force.