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RACHEL'S ENVIRONMENT & HEALTH WEEKLY #578
December 25, 1997
HEADLINES:
1997 SNAPSHOTS, PART 1
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1997 SNAPSHOTS, PART 1
Executive salaries in the U.S. increased much faster than
corporate revenues and corporate profits during the period
1980-1995, according to tax data reported by the NEW YORK
TIMES.[1] In inflation-adjusted dollars, corporate revenues rose
129.5% during the 15-year period, while taxable corporate profits
rose 127%. Executive pay during the period rose 182%. "They
have all this diaphanous [insubstantial, vague] language about
performance and all these committee reports on how pay was
determined, but the simple truth is that executives are setting
their own pay," says Robert Monks of Lens, Inc., an investment
fund.
Actually, tax data understate both the actual rise in executive
pay, and the higher rate at which it has risen compared to
corporate revenues, profits, and taxes, the TIMES reported. This
occurs because most executives are given "deferred stock options"
as part of their annual pay, and these deferred options are not
taxable until the executive "exercises" the option, which may
occur years or decades later (usually after retirement). Thus
today's tax records do not accurately reflect today's executive
compensation.
For example, Roberto C. Goizueta, chief executive of Coca-Cola
(who died recently), had more than $1 billion in deferred
accounts, according to the federal Securities and Exchange
Commission, which he received as compensation over the past 17
years, thus averaging $58.8 million in deferred compensation each
year for 17 years. (To add perspective here: Mr. Goizueta's $1
billion could have served a different purpose --it could have
provided 1500 good jobs, each paying $39,200 per year for 17
years.)
In the U.S., between 1972 and 1995, real wages for a full-time
worker declined 19% in inflation-adjusted dollars.[2] In 1996,
income for men with full-time jobs fell another 0.9%.[3]
Occupational illnesses killed an estimated 60,300 workers and
made 862,200 workers sick in the U.S. in 1992 (the latest year
for which figures are available), according to a study published
in ARCHIVES OF INTERNAL MEDICINE in July.[4] On-the-job
accidents killed 6,500 workers and injured 13.2 million others
that year. There is no reason to believe that 1992 was an
unusual year.
Occupational injuries cost $145 billion, and job-related
illnesses cost an estimated $26 billion for a grand total of $171
billion in 1992. These cost estimates are likely to be low
because they do not include costs of pain and suffering, or costs
of in-home care provided by family members. Furthermore, the
researchers conducting the study believe they undercounted the
actual numbers of workers injured, made sick, and killed by their
jobs.
This was the first study that had ever tried to tally the costs
of on-the-job injuries, illnesses and deaths.
By this reckoning, the costs of job-related harms greatly exceed
those of AIDS or Alzheimer's disease, and are comparable (or even
somewhat exceed) the costs of the better-known major killers,
heart disease and cancer. The main difference between
occupational harms and the better-known major killers is that the
public has been made aware of cancer and heart disease by media
and government attention, whereas occupational illnesses,
injuries, and deaths remain underreported, poorly studied, and
largely ignored by governments, corporations, and the public.
A new psychological disorder called "road rage" is partly
responsible for 28,000 highway deaths each year in the U.S.,
according to Ricardo Martinez, a former emergency room surgeon
who now heads the National Highway Traffic Safety
Administration.[5] About 42,000 people are killed each year in
highway accidents in the U.S., so "road rage" plays a role in 2
out of every 3 such deaths. Road rage includes all forms of
aggressive driving such as tailgating, weaving through busy
lanes, passing on the righthand side, honking, gesturing, or
screaming at other drivers, and occasionally shooting a gun.
Dr. Martinez says the problem has two sources: a 35% increase in
traffic during the past decade with only a 1% increase in new
roads; and an increase in the "me first" philosophy among
Americans during the past decade.
According to a study by the American Automobile Association
Foundation for Traffic Safety, "violent aggressive driving"
increased 7% each year during the period 1990 to 1996.
Crime rates have dropped each year for the past five years in the
U.S., but the prison and jail populations have increased 7% each
year since 1990, reaching a record-breaking total of 1.7 million
in 1996.[6] The cost of prisons and jails is $30 billion per
year, or $17,650 per prisoner per year.
How can crimes go down and inmate populations rise? "The change
in the number of inmates tells us more about our feelings about
crime and criminals" and about changes in sentencing laws, than
it does about crime rates, says Franklin Zimrung, director of the
Earl Warren Legal Institute at University of California at
Berkeley.
For example, North and South Dakota are similar in their social,
economic and racial characteristics and they have similar crime
rates. However, North Dakota incarcerates 90 of every 100,000
citizens while South Dakota imprisons 279 per 100,000.)
Federal crime statistics do not include drug offenses because
there is assumed to be no victim, and drug offenses are not
expected to be reported to the police. Nevertheless, drug
offenses are putting enormous numbers of people in prison --those
arrested for drugs jumped 27% between 1990 and 1995. More than
half the increase in inmates during the past 15 years is
accounted for by drug offenses. At least 25% of new inmates
today have never committed another crime besides a drug offense.
But not just anyone is going to jail. Users of crack cocaine
make up the bulk of those imprisoned for drug use. Crack is a
poor person's drug; powder cocaine is a recreation of the rich.
Congress and 14 states have passed laws making penalties for
crack up to 100 times as great as penalties for powder cocaine.
As a result, African-Americans are much more likely to go to
jail, and for longer periods, than whites. In 1993
African-Americans were seven times as likely to be incarcerated
as whites. An estimated 1471 African-Americans per 100,000
African-American citizens vs. 207 whites per 100,000 white
citizens were imprisoned at the end of 1993.[7]
California is setting the pace for the nation in imprisoning its
citizens. Like Florida, California now spends more, in total, on
prisons than it does on higher education. The California college
system was once hailed as the world's best public university
system, but in the last 20 years, California has built only one
new college. Instead, it has built 21 new prisons. The state now
spends $6,000 per year for each college student, but $34,000 per
year for each prison inmate. In recent years, the California
college system has lost 10,000 employees, including many faculty,
while 10,000 new prison guards have been hired.[6]
Only one percent of American children between the ages of 2 and
19 eat a diet that includes proper amounts of all the food groups
recommended by the federal government, according to a telephone
survey of the diets of 3307 children conducted during 1989-1991.
Even the diet of the top 1% exceeds federal recommendations for
fat content. The results appeared in PEDIATRICS in September.[8]
Federal guidelines say children should eat each day: 6 to 11
servings of grain; 3 to 5 servings of vegetables; 2 to 4 servings
of fruit; 2 to 3 servings of dairy products; and 5 to 7 ounces of
meat.
Sixteen percent of children eat diets that do not meet any of the
federal guidelines.
Only 30% of children meet federal recommendations for fruits,
grains, meat, and dairy; 36% meet the recommendations for
vegetables.
Federal guidelines say no more than 10% of a child's calories
should come from fat and sugar. According to the survey, the
average American child receives 40% of calories from fat and
sugar.
White children came closer to meeting the federal guidelines than
did African-American or Hispanic children.
Pharmaceutical companies have discovered a new market for
antidepressant drugs: children.[9] In 1996, nearly 600,000
children in the U.S. took antidepressant prescription drugs
(Prozac, Paxil and Zoloft). Prozac prescriptions for children
aged 13 to 18 increased 47% in 1996. The NEW YORK TIMES reports
that the adult market for such drugs is "saturated" --Prozac
sales to adults fell 5% in 1996 and 2.5% in 1995. As the TIMES
put it succinctly, "Companies are looking for customers." The
drugs are not authorized for use in children (and their use in
children has been studied little), but neither are they
specifically prohibited, so it is legal for physicians to
prescribe them. An estimated 4 million American children --or 5%
--suffer from depression. The teenage suicide rate has been
rising for a decade and now equals that of adults.
Surely these facts and trends are all connected. It is the job
of all of us, as citizens of a self-governing republic, to see
the connections, discern the common root causes, create
comprehensive visions of a brighter future for everyone, then
work like hell to make them real. Organize, organize! Happy New
Year.
--Peter Montague
(National Writers Union, UAW Local 1981/AFL-CIO) |
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| [1] David Cay Johnston, "Executive Pay Increases at a Much Faster
Rate Than Corporate Revenues and Profits," NEW YORK TIMES
September 2, 1997, pg. D4.
[2] Ravi Batra, THE GREAT AMERICAN DECEPTION (New York: Wiley,
1996 [ISBN 0-471-16556-5]), Table 2.1, pg. 10, citing ECONOMIC
REPORT OF THE PRESIDENT (Washington, D.C.: The Council of
Economic Advisors, 1996), pg. 330.
[3] Steven A. Holmes, "New Reports Say Minorities Benefit in
Fiscal Recovery," NEW YORK TIMES September 30, 1997, pgs. A1, A24.
[4] J.P. Leigh and others, "Occupational Injury and Illness in
the United States. Estimates of Costs, Morbidity and Mortality,"
ARCHIVES OF INTERNAL MEDICINE Vol. 157, No. 14 (July 28, 1997),
pgs. 1557-1568. And see Associated Press, "Job-Related Illness
Cost Put at $171 Billion in '92," NEW YORK TIMES July 28, 1997,
pg. A9.
[5] Matthew L. Wald, "Temper Cited as Cause of 28,000 Road Deaths
a Year," NEW YORK TIMES July 18, 1997, pg. A14. And see: Lesley
Hazleton, "Fear Is Increasing on the Roads, But That May Not Be a
Bad Thing," NEW YORK TIMES October 16, 1997, pg. G2.
[6] Fox Butterfield, "Crime Keeps On Falling, but Prisons Keep On
Filling," NEW YORK TIMES September 28, 1997, Section 4, pgs. 1,
4. And see: Associated Press, "In 90's, Prison Building by
States and U.S. Government Surged," NEW YORK TIMES August 8,
1997, pg. A16.
[7] Allen J. Beck and Darrell K. Gilliard, "Prisoners in 1994,"
BUREAU OF JUSTICE STATISTICS BULLETIN [NCJ-151654], August, 1995,
pgs. 1-13.
[8] K.A. Munoz and others, "Food intakes of U.S. children and
adolescents compared with recommendations," PEDIATRICS Vol. 100,
No. 3, Part 1 (September 1997), pgs. 323-329. And see Associated
Press, "Few Young People Eat Wisely, Study Shows," NEW YORK TIMES
September 3, 1997, pg. A12.
[9] Barbara Strauch, "Use of Antidepression Medicine For Young
Patients Has Soared," NEW YORK TIMES August 10, 1997, pgs. A1,
A24.
Descriptor terms: wages; executive pay; occupational safety and
health; road rage; aggressive behavior; crime; prisons; crack
cocaine; california; higher education; diet; children;
pharmaceutical corporations; antidepressant drugs; prozac; paxil;
zoloft; suicide; |
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