{"id":5720,"date":"2015-08-03T16:43:10","date_gmt":"2015-08-03T16:43:10","guid":{"rendered":""},"modified":"2015-08-03T16:43:10","modified_gmt":"2015-08-03T16:43:10","slug":"ceo_who_made_70k_his_company_s_minimum_wage_admits_it_s_a_disaster","status":"publish","type":"post","link":"https:\/\/www.rushlimbaugh.com\/daily\/2015\/08\/03\/ceo_who_made_70k_his_company_s_minimum_wage_admits_it_s_a_disaster\/","title":{"rendered":"CEO Who Made $70K His Company\u2019s Minimum Wage Admits It\u2019s a Disaster"},"content":{"rendered":"

\"Listen<\/a><\/p>\n

RUSH: Do you remember that guy in Seattle that owned the credit-card processing firm, Gravity Payments? This guy, Dan Price, made news back in April by announcing… He was making a million dollars a year plus as the CEO, and he made a big announcement with a lot of fanfare saying he had made a major decision. He read somewhere that $70,000 a year is the magic number for an employee to make, that with $70,000 a year you can pay your monthly bills. You can buy a car, have a decent house, a place to rent, and have disposable income left over. So he made the decision that every one of these employees was going to be paid $70,000 a year, including him. He was gonna take a pay cut from million plus down to $70,000 a year. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: This guy Dan Price, a lot of people said, “What a great guy! Wow, this is a guy who gets it!” You know, the left is out there always talking about the inequality in what CEOs make versus what their grunt employees make. So this guy came along and he bought into that, and he heard that 70 grand a year was a magic number for employees. Everybody could live comfortably on that, with no stress, or at least as little stress as possible. <\/p>\n

He just made it across the board. In addition to people who praised him with, “Oh, wow, what a great guy, equality at a corporation; does this guy get it.” There were some, including me, who said, “This is gonna bomb. It\u2019s gonna bomb in ways this guy hasn\u2019t even factored. It\u2019s not gonna help his business. It\u2019s not gonna lead to a happy, unified, focused workforce. It\u2019s gonna be divisive. It\u2019s gonna create resentments. It\u2019s gonna create all kinds of problems. And at the end of whatever test period, if there is one, it isn\u2019t gonna work.”<\/line><\/p>\n

Well, Mr. Price has come forward to announce that it was a disaster, exactly as I and others predicted. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Now, back to can Price. Look, folks, this is a teachable moment. This is a big, big, big teachable moment, because one of the things — one of the many things — as we try to keep up with the left every day, is they get on this tear that CEOs are making way too much money and they\u2019re making so much more than their employees. “It\u2019s not fair, and it isn\u2019t right, and it\u2019s hurting the company! It\u2019s not helping America.” So there\u2019s a guy in Seattle that runs a credit-card processing company by the name of Gravity Payments. <\/p>\n

His name is Dan Price, and he read somewhere that $70,000 a year is an ideal salary. If you earn 70 grand, you can have a nice car. You can rent a nice place to live and have some disposable income left over, and it\u2019s a number where people feel good. Seventy grand a year. If they\u2019re making that kind of money, they think they\u2019re respected by their boss and so forth. So he made the decision he\u2019s gonna pay everybody 70 grand. Every one of his employees was going to make the exact amount of money, including him. <\/p>\n

<\/a>He was the CEO, and he was making over a million. He was gonna cut his salary down to 70 grand just like everybody else. He was applauded from numerous corners all over the country (applauding), “Yay! Yay! This is great! Finally a sensitive CEO who knows it\u2019s unfair for him to make anything more than he\u2019s employees. They\u2019re the REAL ones that make it work!” See, that\u2019s the key. A CEO to these people on the left is just a figurehead. He doesn\u2019t really do anything.<\/p>\n

In fact, the CEO probably don\u2019t even know what\u2019s going on half the time. It\u2019s the middle managers and the employees. They\u2019re the ones that really make a company work. They\u2019re the ones that really make a company work. They\u2019re the ones that ought to be making all the money. So they applauded this move. But there were some “critics.” I was one leading the pack — so acknowledged, by the way, by the New York Times, even, and not in a snarky way. <\/p>\n

“The move drew attention from around the world — including from some outspoken skeptics and conservatives like Rush Limbaugh, who smelled a socialist agenda — but most were enthusiastic.” Well, Mr. Price has admitted now that the whole thing blew up on him, it\u2019s been an abject failure. It has bombed out. “Two of Mr. Price\u2019s most valued employees quit, spurred in part by their view that it was unfair to” pay entry-level people the same amount they were making.<\/p>\n

New hires were making 70 grand just like people that had been there for life, just like people that had been there for years. It didn\u2019t matter how long you\u2019d worked there, didn\u2019t matter how hard you worked, did not matter what your contribution to the company was. You made 70 grand a year. Let\u2019s go to the audio sound bites. I just want to remind you, just to refresh your memory what I said about it back on April 15th of this year<\/a>.<\/line><\/p>\n

BEGIN ARCHIVE CLIP<\/p>\n

RUSH ARCHIVE: This is pure, unadulterated socialism, which has never worked. That\u2019s why I hope this company is a case study in MBA programs on how socialism does not work, because it\u2019s gonna fail. … He\u2019s chosen $70,000 as an arbitrary salary because he read that\u2019s where people are happy. And he\u2019s gonna find out… (laughing). It isn\u2019t gonna take long because once everybody figures out they\u2019re all making the same, no matter what they do, the slackers are gonna surface. It\u2019s human nature! ….<\/p>\n

Let me tell you what he\u2019s doing here. I know exactly what this guy is doing, and that\u2019s why I know exactly what\u2019s gonna happen. … He\u2019s assigning the same passion to his employees that he has, but they don\u2019t make enough money. He\u2019s read that $70,000 is that liberating magic number where you become happy, and he wants people to be able to focus on the work, not on they can\u2019t pay the light bill; they can\u2019t pay whatever bill.<\/p>\n

So he\u2019s gonna pay \u2019em 70 grand so they don\u2019t have to worry about making their payments. They don\u2019t have to worry about being in debt, and they can focus on their passion, which is his business. And you can do that with one or two. Not every employee is the same. You can do that now and then, that can work for a time. But I think what the guy\u2019s doing is trying to buy love. Myself, I think the guy\u2019s trying to buy respect, trying to buy affection; that never works, by the way. <\/p>\n

END ARCHIVE CLIP<\/p>\n

RUSH: It was a long monologue, and I went on to predict specifics of what would happen, that long-term employees who valued themselves greatly would be resentful and lose their passion, and they would see people not working very hard or not caring and going on vacation, getting the same amount they were getting, and it just wasn\u2019t gonna work. And the fact that he had cut his own pay to 70 grand was not gonna get him any credit. <\/line><\/p>\n

At the end of the day, it wasn\u2019t gonna matter to anybody. It wasn\u2019t gonna mollify anybody. It wasn\u2019t gonna change anybody\u2019s attitude. It was gonna lead to rampant unhappiness because nobody thinks they\u2019re the same as everybody else. Contrary to what the left is trying to force on us, nobody wants to be the same as everybody else. You might not want to be like somebody in this way or that way, but you don\u2019t want to be the same, and you don\u2019t want to be considered the same. You want to be considered unique. <\/p>\n

There\u2019s only one of you. And if you\u2019re healthy psychologically, you know it\u2019s a special you. There isn\u2019t another you. You don\u2019t want to be lumped in with a bunch of slackers, half-baked, half-caring people. You want to be thought of as the cream of the crop, and you can\u2019t be if everybody\u2019s making 70 grand. The fact that there are going to be different degrees of talent and ability and passion, means it just never had a chance. So here is Mr. Price on the New York Times website on Friday. Remember, he just did this back in April. Well, that\u2019s when we heard about it. He might have done it some months prior. But they posted a video at the New York Times of Dan Price discussing the impact of his decision.<\/p>\n

PRICE: I\u2019m working as hard as I\u2019ve ever worked to try to make it work. I\u2019m renting out my house right now to try to make ends meet myself. I haven\u2019t made this little amount of money since I was in my early twenties. It helps that I\u2019m 31, and don\u2019t have any kids, too (laughing), and no girlfriend. No girlfriend to tell me I\u2019m crazy.<\/p>\n

RUSH: It\u2019s just a few months later this guy is now renting out his house for additional income. He took a pay cut from over a million to 70,000, in order to be fair and to show that he was no better than anybody else and that even as CEO his contributions were no more important than anybody else\u2019s. And see, that\u2019s the rub. “Nobody\u2019s more important than anybody else.” That\u2019s socialism to a T. Nobody\u2019s more important. Everybody\u2019s the same. They\u2019re interchangeable! If one person making 70 quits, it doesn\u2019t matter!<\/p>\n

Go get somebody else, pay them 70, and you haven\u2019t lost anything, and of course none of that\u2019s true. The main policy or main flaw with socialism side from run out of somebody else\u2019s money at some point is that we\u2019re not the same and we are not equal. There is no such thing as fairness. Fairness is always arbitrary depending on who has the power to define it, and there certainly is no equality. There\u2019s equality of opportunity, equality of chance, equality before the law, but these people talk about equality in terms of outcomes, and there\u2019s no such thing.<\/p>\n

You put a system of socialism in place where you have equality of outcome, and you\u2019re always gonna have some renegades, some entrepreneurs who are gonna say, “Screw this,” and they\u2019re gonna bust out, and they\u2019re gonna do what they do, and they\u2019re not going to be shackled by silly rules like this. And then you have, on the other end of it, people who are gonna say, “I\u2019m gonna get 70 grand a year, man, and I don\u2019t have to do anything special? I just have to show up?” and that\u2019s all they\u2019re gonna do. Because slackers are everywhere. <\/line><\/p>\n

If you\u2019re not going to be compensated or rewarded for merit-based behavior, then there\u2019s no reason to be concerned about merit-based behavior. So that goes out the window, too. But look at the New York Times story here. Most everybody praised the effort, most everybody got behind this idea and thought it was wonderful. There are just two or three people the Times references here who had the audacity to criticize it, and of course your beloved host named as one of those. So I don\u2019t know what he\u2019s gonna do now. <\/p>\n

He could do a GoFundMe campaign, crowd fund, or what have you. But this is the frustrating thing for me. And I think it\u2019s always gonna be frustrating. The evidence that liberalism, socialism, fairness, sameness, equality, good vibes, good feelings, the evidence that it doesn\u2019t work is abundant, it\u2019s everywhere, and it doesn\u2019t seem to register with people. The good intentions always seem to trump the evidence. They always seem to overpower it. But at some point, everybody has a learning experience personally where perhaps they learn it personally rather than objectively, at a distance. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Thomas in Fort Collins, Colorado. Welcome, sir. Glad to have you on the program.<\/p>\n

CALLER: Rush, it\u2019s my pleasure to speak to you. Thanks for taking my call.<\/p>\n

RUSH: You bet.<\/p>\n

CALLER: You know, I heard your comments about Dan Price, and he seems like a really nice guy. I read a bit of that article as well, and his intentions were good, but it appears that, you know, he just doesn\u2019t recognize the consequences of making that decision, of paying people with limited skills $70,000. Now, those folks making $70,000 are gonna have expenses for $70,000 a year, and what\u2019s gonna happen to those folks when they lose their job? They are going… How are they gonna make their payments, keep the nice cars they bought, you know? They probably have upgraded their home and paying much more in rent or purchased a house. Those people are likely gonna lose everything.<\/p>\n

RUSH: Well, now, theoretically you\u2019ve got a great point here. I don\u2019t know how long that these people have made that money. I don\u2019t know they\u2019ve been paid that much enough. We just heard about this in April. But it\u2019s possible. People may have gone out and upgraded their cars, they may have gone out and upgraded where they live, and they may eventually… I didn\u2019t read the entire story. Have some of them already been laid off? Have some already been fired, or is that projected to happen down the road?<\/p>\n

CALLER: I think he\u2019s actually initially had to hire some people, and when he hired those folks, he\u2019s paying them much, much more than he would have, \u2019cause initially he had a lot of responses after all the media attention that he received. But, yeah, he ended up losing some. I think ultimately he has to let some people go.<\/p>\n

RUSH: Well, those people that have taken what their new salary was and started living on it and maxed it out, you\u2019re right. They are going to have expenses that they\u2019re not gonna be able to replace if they can\u2019t find a job that pays them at least that much. And the odds are they won\u2019t. The tough thing about this is… Somebody has to say this. Whoever says this is gonna be thought of as heartless and mean-spirited and all that. But a lot of these people weren\u2019t worth 70 grand. Merit based, they just weren\u2019t worth it. <\/p>\n

“Wait a minute, Mr. Limbaugh! They were being paid. What do you mean they weren\u2019t worth it?” In terms of how productivity determines wages and value and worth, they weren\u2019t worth it, some of them weren\u2019t worth. They were getting any where near that. By definition, they weren\u2019t worth it. If he wasn\u2019t paying them 70,000 beforehand, they weren\u2019t worth it. But, then again, you are worth what somebody will pay you. Well, this guy came up with an arbitrary number of 70 grand, and there were some people who assuredly were not worth it.<\/line><\/p>\n

They were not make this that beforehand. The only reason that matters is they\u2019re not going to be able to replace it if they do not have the skills, the talent, resume — and the economy being what it is. So that is a good point, something to think about. This is a great example where good intentions can oftentimes come back to bites you. This guy only wanted these people to have a happy life. You know what spurred this with the guy? And, by the way, this is a legitimate concern. <\/p>\n

He\u2019s got a business to run, and he found out that a lot of his employees were being distracted by the fact that they were late on a car payment or late on the rent, and the creditors were hassling them, and they were distracted, and they weren\u2019t working, and he said, “Okay, I don\u2019t want people working for me to be distracted by this.” So he found out that 70 grand is the magic number with that stuff doesn\u2019t happen, and he just said, “I\u2019m gonna pay every 70 grand,” because he wanted \u2019em focused on the job. <\/p>\n

Now, I can understand that. That, in and of itself, you could say actually is an act of compassion, and the intentions behind it are wonderful. But then the reality, as old Thomas here points out, is some of them weren\u2019t worth that. I only say that in the sense that their next jobs they\u2019re probably not going to get that. And the odds are they won\u2019t. I hope they do, but they probably won\u2019t. In which case they\u2019re going to have a lifestyle that has been structured around 70 grand — which, by the way, it\u2019s not first time something like this will have happened. <\/p>\n

But it just… That\u2019s why all this is a teachable moment. I was dead serious when I said I hope this ends up as a case study at MBA school down the road because this plan that this guy had takes every demand or suggestion that liberals have, and he put it in play, put it in motion. And now he has to rent his house out to get by! He can\u2019t make it on 70 grand because, of course, he had a lifestyle that was based on some amount up to a million. He may have been living it all. Who knows? Anyway, thanks for the call. I appreciate it, Thomas. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: One more piece of information about this company, ladies and gentlemen. What is it? Gravity Partners, whatever the name of this company is. Gravity Payments. Here\u2019s the thing. It sounds like the whole company may fold now. That\u2019s how bad things have gotten. This plan to pay everybody 70 grand a year was implemented three months ago, according to the New York Times. But get this — and this was perhaps the worst thing that happened. <\/p>\n

“Less than two weeks after the announcement, Mr. Price\u2019s older brother and Gravity co-founder, Lucas Price, citing longstanding differences, filed a lawsuit that potentially threatened the company\u2019s very existence.” So apparently there was trouble in paradise even before Dan Price made this move, and then he made the move and his brother\/cofounder says, “What the hell is going on?” and filed a lawsuit which could end up putting the company out of business. <\/p>\n

How\u2019s that? <\/p>\n

Now, you say, “Well, maybe what Dan Price was trying to do was save the company. Maybe it was in trouble to begin with.” Who knows? Whatever. But this didn\u2019t work, and it has now led to the absolute worst possible outcome for everybody. No more company. So, yeah, it sounded great, everybody making $70,000, but it wasn\u2019t possible. Financially it wasn\u2019t possible, and in every other way it didn\u2019t make any sense. So now look at these great intentions. Look at this heartfelt desire for everybody to do well, be happy, and not have to be pressured by bill payments that were late so forth. <\/p>\n

Now there might not be any jobs anywhere at this company because there might not be a company. <\/p>\n","protected":false},"excerpt":{"rendered":"

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This guy, Dan Price, made news back in April by announcing… He was making a million dollars a year plus as the CEO, and he made a big announcement with a lot of fanfare saying he had made a […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[],"tags":[],"yoast_head":"\nCEO Who Made $70K His Company's Minimum Wage Admits It's a Disaster - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2015\/08\/03\/ceo_who_made_70k_his_company_s_minimum_wage_admits_it_s_a_disaster\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"CEO Who Made $70K His Company's Minimum Wage Admits It's a Disaster - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: Do you remember that guy in Seattle that owned the credit-card processing firm, Gravity Payments? 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