Economics 101 – How much should I get paid


Basic assumption all pay should be guided by the following principle.  Your pay should be in direct proportion to the net sales and revenue you provide to your employer.

This is a philosophy that all people employed are sales persons and responsible to reduce cost and improve efficiencies of what ever is being sold for revenue.  This includes the temporary hire to the president of the company and contribution and responsibilities result in a pay scale based on the percentages of responsibility.

You might say what about minimum wages and a fair distribution of profits.  By using a strict benefit for productivity methodology  minimum wages are now serving as a barrier to future raises as valuable revenues are being siphoned off to people who have no desire to aspire to anything than some easy money.  Unions rarely follow their stated intent to secure better wages and more job protection, instead they just become an extra layer of management and hinder productivity through rules that become inflexible in times of opportunity.  Instead of looking out for their clients best interest they by nature are self serving sycophants sucking the very monies to themselves in cash and benefits and merely achieve the status quo of what other unions can extract through intimidation and threats of bankrupting the company which they achieve directly or indirectly far too often.

In a government position where bankruptcy is removed from the table communities are held hostage and threatened with below average services as they are forced to fund jobs to 4 when one would be sufficient and the surliest of those who face no retribution are an anathema to public service eventually beating down the most altruistic  new hires into cloned submission.

The only hope for a raise remains in a risk reward situation where pay is directly tied to performance based on mutually agreed upon metrics.   It starts with a vision from top to bottom. with the presupposition of there are no employees but all are contracted sub companies where each serves their own self interest while agreeing to serve the whole in achieve mutually beneficial goals.   The company provide both pay and benefits and transferable job skills where their sub contractors can shop for the company that will best serve their needs.  People can choose to leave for more pay or agree to stay based on job satisfaction and the hopes of achieving  more pay in the future if the company is taking the risks that will result in a transformational product.  This is demonstrated by apple and face book and other start-ups that take risks and sometimes succeed and sometimes fail.  remember newton and the palm?  Steve Jobs had incredible failures say the Lisa before the Macintosh but people believed in His ability to bring out the best of his subcontractors to achieve amazing result.  Bill Gates was a genius in establishing standards through mass not price.  The  recent spate of copy write protection will be Windows demise as focus on retaining profits sucks the energy of creating new and better products.

An airline that can deliver better service at a reasonable cost and rewards its customers with more service than they pay for will beat an airline that fly’s with the lowest cost and does not deliver the minimum expected service.  When airlines lose their way in their search for additional revenues and does not deliver superior service will go bankrupt regardless of their race to the bottom.  Each employee (subcontractor) has a huge impact on getting customers returning or calling them first. from the lowliest clerk and ship cleaner to the pilots and top executives, how they perform has a direct relationship to customer service even if they have no direct contact with customers.  I have often said the Clerks rule the world because they enable or prevent so many other from performing at their peak efficiencies.  Mutual respect and valuation of each other assures a consistent excellent performance.  Management serve only to document and train and encourage their reports to excel through developing the very matrix-es that can measure job performance to determine the reward, bonus, or minimum pay each position deserves.  When an employee fails to achieve minimum standards after rigorous training and opportunities it is the managements responsibility to explain why this may not be the job for them and allow the to seek employment elsewhere with the suggestions and help of management to send them on their way with hope for their  future.

This is what is called by those who seek an unachievable goal of equal pay for every one regardless of job performance a Darwinian approach but this is an unacceptable definition of mutually beneficial self service and bartering or trade defined by capitalism.

In a regressive tax environment which punishes those who succeed with ever increasing confiscation of wages, those who are more needed are encouraged to not work at all.

I went to an art show at the old Pabst Brewery in Los Angeles and felt remorse on what Los Angeles used to offer.  Jobs through manufacturing.  Because of regulations and ever increasing government rules manufacturing left because of the cost of the building all in the name of creating a safer work environment.  a company that has no way to pay their employees if their profit is siphoned off to pay off corrupt and misguided government bureaucrats whose only claim is “creating heaven on earth” and getting all of their friends and family on the government dole wagon with them at the reins as they drive the economy and successful companies into the ditch and/or out of the area.

The reason manufacturing is done anywhere than in the Us is the cost of operating the factory is so much less in time and money.  By dealing with more and more ever increasing governmental agencies is is almost impossible to do a manufacturing start up as revenues are siphoned off before a cornerstone can be laid.  In my home town of Redondo Beach apple could never have been started in a garage as they would be told you can’t operated a business out of your garage since you can get no permit you can have no business.  A business that had been operating for over twenty years with no neighborhood complaints was denied a permit after having one granted to those twenty years because they violated the zoning regulations.  the councilmen has indifference as the city cut off a revenue producer for no reasons except bureaucratic rules that do not serve or community well.

Without a vision to create a community in Redondo Beach balancing the needs of the community of residents and business it cannot achieve a place where people desire to live work and play.  Our children will not be able to get the jobs to live nearby and housing will at some point become unapproachable to them as well.  When Government does not have to operate with the same rules as a business to survive and dos not pay its employees based on performance the pay becomes skewed and is rife with cronyism and corruption and becomes a drag in what people can earn if they can even get a job.  when wages are dictated by fiat as they are in a minimum wage companies and employees lose their focus and people in the long term actually make less than they would because they must carry those who have no desire to progress because they are only making “A minimum wage” and feel un-healthy desire to any more than the minimum and feel if they can do less and get away with it they are making more?  ( I watched TV all Day and got away with it.  I slept through half my shift and got paid the same).  If they can even get a job.

The first step in changing this is the realization of we need to change direction.  A reduction and streamlining of governmental agencies even in a city must be examined and costs to start a business.  an acceptance of variances granted to companies operating in a flexible zoning plan will result in more home businesses and start ups and desirability as people will want to live in a town that will allow them to achieve financial success and hire their neighbors who moved there because they can get a job they can walk to.

If zoning allows overbuilding we lose the heart and balance of the very city we live in and defeats the economic machine that will allow to work close to where they live.  If Redondo is allowed to become a retirement village where businesses are prevented from being started you will have a city of haves and have-nots where they only jobs pay so little there will be no hope for children much less our children’s children.

If Business are allowed to start up regardless of their impact on the quality of life of there surrounding areas people will be driven out and the back lash will be to sever them without regards to consequences.  One possible solution would be the signatures of the neighbors on the variance and a 90 % minimum of those who live within a four block radius or reasonable distance from the business.  If after the business is started complaints are served to specific measurable standards changes must be made and if achieved the variance granted on a 5 year renewal.  there will be some circumstances where one or a small group of people will relentlessly attack and if rewarded in driving out those who are trying to succeed based on perception and or fear or just a contrary spirit.

Economic freedom precedes all other freedoms for without revenue or the hope of revenue people cannot have freedom of speech and religion.  By a governmental restriction of economic freedoms through bureaucratic rules and fees it succeeds in putting itself out of business and plunges its citizenship into darkness.  this occurs not just on the Federal level but the state and city level.  It also occurs on the street where you live and in the households where entrepreneurship is not encouraged.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: