An Average American Would Need 3 Centuries To Match Tesla CEO's Yearly Paycheck

Elon Musk’s 11-figure pay package, in contrast to millions of Americans struggling to keep up with inflation and make ends meet, is a stark reminder of American inequality. The decline of the middle class, as per Pew Research, is not mere speculation: In 1971, 61% of Americans lived in middle-class households, a figure that has now dropped by 10%.

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What is a middle-class salary? You’re middle class if your household earns between $39,296 and $118,800. That number is based on data from the Pew Research Center, which defines the middle class as households that earn between two-thirds and double the median U.S. household income. According to the Bureau of Labor Statistics, the median household income in 2023 was approximately $59,400.

Another amazing contrast? While the average American earns $34 an hour, if Musk works 40 hours a week, 50 weeks a year, he’s making $22.5 million an hour. 

When so many people tie their sense of worth or accomplishment to their career, it can leave nearly everyone wondering, "What about me?". The answer is clear: to amass Elon Musk-level wealth with an average salary, you’ll need about 272 years, over 3.5 times the average U.S. life span. 

While Musk highlights the disparity, he’s not alone. According to an AFL-CIO report, top CEOs of S&P 500 companies earn an all-time-high average of $16.7 million. The obvious conclusion is that CEO-to-worker pay ratios remain unacceptably high, creating an unhealthy work environment and failing to adequately reward a highly skilled, dedicated workforce. The report concludes that companies suffer from a winner-take-all philosophy; thus, everyone loses. 

Trending: Amid the ongoing EV revolution, previously overlooked low-income communities now harbor a huge investment opportunity at just $500. 

Now, let’s get back to Musk. Tesla had 140,473 employees as of Dec. 31, 2023. If Musk’s pay package was reduced to just $1 billion — arguably, more than any human could ever need — the remaining $44 billion could be divided among its workforce and wider educational or nonprofit programs. 

If $40 billion were divided equally among Tesla’s employees, each person would earn an additional $284,752. It’s not enough to make them billionaires but enough to live comfortably in the U.S. and put them in the top 10% of U.S. earners.

Or Musk could offer one million $30,000 scholarships each year to new college students. And don’t forget we’re reserving $4 billion for nonprofit programs to improve society — from tackling climate change to medical research — so the company could show that it cares about everyone, not just its CEO.

The conclusion is that your worth is not tied to your earning potential. Still, the wider economy and success of society are tied to the average American earning a living wage, and that’s harder than it was 50 years ago. The enormous pay disparity between top leaders and the average worker creates a call for action. If we want to keep the American dream alive, we must do more to provide access to everyone, not just the 1% of the 1%. 

And to those in the top 1% of earners: your privilege comes with a responsibility to give back, to take steps and risks that could benefit millions of people. You have the power to change the world — use it for the good of all. 

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