In 1971, Merrill Lynch, and then Morgan Stanley, Bear Stearns, Lehman Brothers, and Goldman Sachs went public so they could compete with international banks that were creeping in on their business of underwriting stocks offerings and advertising firms. In order to have the capital to compete they had to go public. Doing so allowed investment banks to become monsters.

The most serious mistake of the decade was the Securities and Exchange Commission’s 2004 rule change allowing them to increase the amount of debt they could have on their books. That ruling was made at the request of the ” Big Fives CEOs.” Before the end of it, Lehman had amassed more than $600 billion in debt. There was no accountability for any of the big banks.

In theory boards are supposed to oversee the CEOs. In fact the boards weren’t paying any attention or they were so well payed they looked the other way. ” They were deliberately selected because they were unqualified or out of it.” said John Gillespie, a former investment banker at Lehman and Bear Stearns. Gillespie noted that Lehman’s compensation committee included Dina Merill, an heirss to the E.F.Hutton fortune who was 85 in 2008. When Lehman ended it’s 14 years as a public company $45 billion in shareholder value had been destroyed.

J.P.Morgan bought Bear Stearns out at a fire sale price with the help of the Federal Reserve. (which means the tax payers paid after being cheated blind already.) Morgan Stanley and Goldman managed to hang on with huge subsidies made available to them. ( tax payers money again.) Any puny returns comes at a huge sacrifice of share holders. Massive amounts of money went to the Banker CEOs.

The public as owners, taxpayers, and savers have every right to be angry, and to question the banks methods and practices. They took the money out of share holders pockets, paid themselves outrageous bonuses. Families lost their homes by the millions. Many people are out their retirement funds and will go needy into old age.  These CEOs should be considered criminals. The wealth they have accumulated should be taken from them and distributed to their investors in my opinion.

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There is a lot of false pride today because of the fact that slavery was long ago abolished. But, was it really? It may be that the name, Slavery, was just changed to Minimum Wage and the color “black” was changed to “diverse” which includes all colors as well as white. When I told my Sociology professor that I thought, in some instances, slavery might be better than working for minimum wage in today’s society, he said that thought was ludicrous. I understand why he said what he said, but I do not think he understood why I said what I said. Have you ever tried to live and pay bills on minimum wage in today’s society?

According to sources found here, on July 24, 2008, Alabama does not have a minimum amount an employee must be paid. Alaska workers must be paid at least $7.15 per hour while Georgia workers must be paid at least $5.15 per hour if the company employs six or more. Kansas has to pay employees a measly $2.65 per hour and Illinois pays a whopping $8.25 per hour as a minimum amount allowed paid to employees. South Carolina and Tennessee have no minimum amount that employees must be paid. Wyoming employers must pay at least $5.15 per hour to employees. At $5.15 per hour, an employee would have to work a half week just to fill a car up with gas.

Unbalanced Pay Scale

When I hear of the $700 billion bail-out that is going to be paid in order to save the hide of greedy money mongers who have taken much and turned it into nothing, I am appalled. Large corporations as well as some smaller companies are paying hard working, honest employees a “minimum wage” that leaves them in a lifetime of poverty just so CEO’s can be paid millions of dollars so they can waste it on stuff that deteriorates as fast as it is made. And we read in textbooks that slavery was abolished a long time ago? How does one figure that?

Minimum Wage Laws Feed Poverty

Just who is it that has the authority to decide who is worthy of excess and who is worthy of crumbs? Realistically, a modest budget of one person consists of rent of at least $500.00 per month, utilities at a cost of approximately $160.00 per month, car payment or transportation of $250 – $300 per month, fuel for the vehicle at a cost of at least $100 per month, food at a minimal cost of $300 per month, cable and internet, which some might consider a luxury, costs at least $100 per month, $300 a month for miscellaneous such as clothes, shoes, cell phone, cough syrup, soap, shampoo, toothpaste, toilet paper, car maintenance such as oil change, liability car insurance, etc. While $1,300 doesn’t sound like a lot of money for a very modest budget, a person earning $8.25 per hour might be able to scrape by but will remain at poverty level. If this person has a child and has to pay for school lunches or incurs any expenses associated with children, this person is screwed. Of course, this is in Illinois and I have no idea as to the real cost of living there. It can be calculated quite easily how a person making less than $8.25 per hour would fair while on an extremely modest budget. There is NO WAY this person can exist comfortably.

Minimum Wage Laws a Bargain for the CEO and Corporations

Comparing a worker who lives on minimum wage to slavery, I am still not sure that minimum wage is better. To pay an employee $5.15 per hour and then be done with him at the end of the day is actually a bargain for any employer. Slave owners had to provide housing, food, clothes, etc. and not all slave owners mistreated their slaves. Some were actually good to their slaves. When I think of earning $5.15 per hour and then being told to provide my own housing, transportation, food, clothes, etc., I cringe. There is no way it could be done. The figures just don’t work. Idealistically, it may sound like living in slavery would be worse than living “free” on minimum wage but realistically, living in slavery may actually be the better of the two evils. A ludicrous thought? Yes, according to my Sociology professor, but realistic to me. To work for an amount that does not pay for acceptable food, shelter, clothes, and transportation is worse than slavery and gives no hope for survival. A life of poverty with no hope to do better possibly drives people to crime, drugs, and dependence on others.

Greedy CEO’s Dependent on Minimum Wage Workers as Well as Government

Ironically, CEO’s who shovel in millions of dollars in pay are actually dependent on workers accepting less pay and minimum wage workers in order to be able to feed their greed. Why are these CEO’s who have taken much and turned it into nothing worthy of a $700 billion bail-out by “our” government when some who work hard and honestly are only “worthy” of minimal pay? CEO’s can be compared to slave owners in that they consider themselves more deserving and minimum wage workers can be compared to obedient slaves because in reality, they are able to exercise no control over their destiny. Minimum wage laws are implemented to protect the CEO’s and business owners to insure a desired profit level. Minimum wage workers are no better off today and may even be worse off than slaves of many years ago. The name has been changed but the concept remains the same. Those who think they are deserving reign over those deemed undeserving…by the implementation of minimum wage laws which actually insure that CEO’s have labor similar to that of slaves. Not only do some expect earnings in excess of millions of dollars but they also expect the government to bail them out to the tune of $700 billion when they prove to be incompetent or unworthy of their earnings.