Average 'Joe' has most to lose

By BOB KRUMM

How much is $13 million - the amount a CEO was recently going to receive for working a mere 18 days? Apparently he accepted something less (because of current public anger about these types of deals) but he serves as an example of how skewed our financial system has become.

For starters, this CEO earned $722,000 a day. If he worked 12 hour days (let's give him the benefit of the doubt) that was $60,185 an hour.

Now, let's examine $13 million from the perspective of an average 'Joe', who earns $20 an hour and works 2,080 hours a year. That's equivalent to an annual income of $41,600. Average 'Joe' would have to work 312.5 years to earn what that CEO made in 18 days.

If average 'Joe' works 35 years before retiring, he'll earn $1,456,000 (before taxes). That CEO's 18 days is equivalent to the income of 8.9 average 'Joes' each working 35 years.

Now, the average 'Joes' I'm thinking about are hard working men and women who are driving trucks, digging ditches, picking up trash, enforcing the law, printing newspapers, repairing our streets, educating our children, growing food, treating illnesses... you name it.

Our average 'Joe' could be a small business owner, worrying where he'll find the money for payroll or to stock empty shelves once filled with products sold for a reasonable profit.

Our average 'Joe' might even be a credit card holder using his card frugally and wisely, but discovering his credit is gone because the bank doesn't have money to loan him.

Average 'Joe' is the backbone of our economy... our country. Odds are average 'Joe' is living from paycheck to paycheck, worrying how he'll make his mortgage payment and pay his taxes. Average 'Joe' tries to save enough money to (maybe) take a vacation, (maybe) put his kids through college and maybe set aside something for retirement.

And let's admit that average 'Joe' probably earns less than the $20 an hour used in the above example.

Average 'Joe' doesn't spend his days behind a desk or in a board room. Average 'Joe' doesn't live in a fabulous mansion, drive a fabulous car, dine at a fabulous restaurant, or take a fabulous vacation.

Average 'Joe' worries about how he'll pay for the gas he needs to get to work, with something left over to put a meal on the table.

Average 'Joe' invests what little he has in savings accounts, Roths, 401(k)s, CDs, and stocks. He has the greatest amount to lose if his job goes overseas, his company goes belly-up, or he gets too sick to work.

It's doubtful average 'Joe' has a golden parachute if he becomes unemployed.

Who is to blame for this economic dilemma? We all are. Sorry, average 'Joe', but some of you foolishly bought homes you really couldn't afford with a subprime mortgage you didn't understand. You didn't wait until payday to buy some new toy, so you put it on a credit card... instant gratification now - face the consequences later.

Of the many lessons learned from financial advisor and friend Susan, one of the most poignant is: "Don't expect the Calvary to save you. Only in movies does the Calvary arrive in time to save your bacon."

Friend Bob Schultz blames a decade of deregulation, approved by those we elected to protect us. Thanks to deregulation he never knows who to call when his phone doesn't work. Thanks to deregulation there are fewer airlines, so he pays more for airfare.

College roommate Bob Hammond, from Fairbanks, Alaska, blames self-serving Washington politicians, who approve their own pay raises, have the finest in medical benefits, great retirement packages, and even added a Jewish holiday to their long list of days off with pay.

"They've been sleeping on guard duty," he e-mailed me recently. "In the army you'd be court-martialed for that."

Many voters blame other politicians, but rarely their own local politician.

The politicians blame members in the other party.

Let's all face it, life isn't fair, but we have been given free choice to control some of what happens to us. Consider what you'll do in the voting booth on Election Day. Choose wisely.