Found on imgur https://imgur.io/gallery/gqItf8e
would be more interesting to see how much more could those companies pay their employees if their profit was evenly distributed among them
It really depends on how much it costs them to do business. Payroll is only a part of the cost to do business. Companies like Walmart have massive real estate holdings which likely take a significant chunk of their revenue to pay off.
Are you referring to stores and warehouses or do you mean they dabble in the real estate market?
Since most or even all of them are publicly traded companies it isn’t that difficult to find out.
Walmart had a net income of 14 billion, they have roughly 2.1 million employees, that leaves each employee with an additional 6.6k for this year or roughly an additional 550 a month.
Doesn’t sound a lot but that can be done without impacting any other business practices. And for some of the employees overseas that might be doubling their salaries.
Considering a large portion of Walmart workers receive food stamps and other benefits due to low income, it would be a huge boost for those folks and lessen demand for assistance on local govts…but nah let’s keep all the money to pay for our drunk driving murder nights.
Would need to make sure to exclude costs like executive “compensation”, stock buy backs, or any other methods used to artificially decrease profits to avoid taxes.
Stock buybacks don’t reduce profit for the company. They are not accounted as an expense that offsets income. Investors pay capital gains tax instead of income tax that they would pay on an equivalent dividend, which is probably what you are thinking of.
Net revenue, gross profit, operating income, EBITDA, and (net) profit are some well understood measures that take various things into account. E.g. net revenue subtracts the cost of inventory, but it doesn’t subtract wages, so it’s probably a good starting point for a discussion on redistributing earnings among workers.
To save people from having to squint at the small text; top chart is measured in seconds, bottom chart is measured in days.
Revenue? Profit? EBITDA? Without a definition for what “make” means, this is useless, and verges on propaganda.
Says right at the top of the chart. The 3 data points are 2022 revenue, revenue per second, and average salary.
My fault for not being able to read teeny tiny gray text on a white background, I guess.
Anyway, comparing revenue to worker compensation isn’t really very useful. Payroll comes out of that revenue, as does every other cost of doing business. Compare payroll to profit, or to executive compensation, if you want to make a point. Yeah, worker compensation sucks, but just comparing it to “the biggest number we could find” doesn’t mean anything.
Yeah, you’re right, there’s no wealth gap problem, why even bother talking about it?
I’m having a hard time with the realities of this. How much time should a corporation take to earn the salary of the average employee? What percent of a company’s yearly profits would be appropriate to be spent on salaries? Many of the companies are exceeding 1/12. Is that enough? If not, what is?
I know I’ll probably be on the wrong side of things (again), but I didn’t find this graphic stirring. Is there a number out there that people find acceptable?
Shouldn’t the discussion revolve solely around SPENDABLE income? Am I misunderstanding something? I’m sure I am.
I thing comparison to the employee salary makes no sense whatsoever. Different businesses have different expenditure structures depending on various things, like the type of business their are doing. In some companies, salaries might be dominating expense, in some others barely noticeable. Says nothing about how “fair” the business is.
No, salaries are based a pre-tax basis. In other words you’re told you’ll make $120,000 per year, that amount is before taxes.
Even if we compare it to profits the time frame just switch to minutes. Walmart made a net profit after taxes of 14 billion. That translates to 26k per minute.
Profits aren’t spent on salaries. Salaries one of the things deducted from revenue to determine profits.
What percent of a company’s yearly profits would be appropriate to be spent on salaries?
The OP they responded to did.
I came here to tear this apart as being liberal propaganda, but was pleasantly surprised that others already took care of it. I am liberal, but not when it comes to economics. You can’t go throwing around numbers when you don’t understand how the economy operates and businesses function in general.
If you are not left on economy, in US terms you are probably libertarian.
Being a social liberal and a fiscal conservative involves specific stances on two different aspects of governance. Social liberalism emphasizes individual rights, equality, and social justice, often advocating for policies like marriage equality, abortion rights, and anti-discrimination laws. It’s about how society should be organized and how individuals should be treated within it.
Fiscal conservatism, on the other hand, focuses on economic policy. It advocates for reduced government spending, lower taxes, and minimal government debt. This approach is about how the government manages its finances, aiming for efficiency and reduced intervention in the economy.
Libertarianism, while it can share some aspects of both social liberalism and fiscal conservatism, is a broader political philosophy. It emphasizes individual liberty as its core principle, advocating for minimal government intervention in both personal lives and the economy. This includes a strong emphasis on free markets, personal freedom, and limited government across all aspects of life.
So, while there are overlaps, especially in terms of economic policy with fiscal conservatism, libertarianism as a philosophy extends beyond just economic or social issues. It’s a comprehensive worldview about the role of government and individual freedom, whereas being a social liberal and a fiscal conservative usually refers to specific policy preferences within the existing political system.
I believe in appropriate regulation of the free market to prevent monopolies and improper collusion, however it is not fair to criticize companies in a vacuum for how quickly they cover employee overhead costs, because that is just one line item on their budget. The point being made by the author is that the company may have more money to give, but that is shortsighted framing of the issue to blame companies without understanding the economics of their business.