13 2 mins 11 yrs

I’m just off the BBC’s Nolan Show debating the issue involved in the news that the Directors renumeration of the top 100 FTSE companies is up by 50%.  Three points;

1. I have a sore throat so any emotion in my voice was caused by that!

2. I FULLY support the decisions that these publicly quoted companies make to reward their Directors. Success SHOULD be rewarded, and failure punished. That’s the point of all of this.  I did tell Nolan that I wanted to see failed Banks collapse – think he didn’t like that! But the Left cannot on the one hand complain about the cost of bailing out banks whilst simultaneously exulting in bailing them out!

3. It’s just NOT Private sector bosses that have seen their salary levels increase, the Public sector have been at it too, and remember that they generate nothing. Why no outcry there?

In addition to this, there is a fundamental belief that private business must be allowed to run itself privately (and lawfully), without the State getting in the way. I remain implacably opposed to crony corporatism, just as I oppose toxic socialism. But if we concede the principle that the State will ses the limits for private sector pay, we will no longer live in a liberty loving democracy but will have passed into a State controlled tyranny.

Always remember the State has NO money, it is always our money and we should have the right and indeed encouragement to make as much of it as possible, and spent it as we deem best fit.  Capitalism “red in tooth and claw” it is …..not wrapped in the Red Flag.

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13 thoughts on “HOORAY FOR CAPITALISM!

  1. Spurious chart.

    1. Where is the chart showing Public Sector Management increases?
    2. What is the purpose of the Inflation chart since it is driven by Government, not private business?
    3. A private company has the right to reward as it sees fit. Shareholders vote with their money.
    4. Government has no right whatsoever to interfere with the internal arrangements of companies. Unless one is a socialist, full of envy.

  2. The wealthiest 1% pay the least tax and most of this money goes into tax havens and not back into the economy. It’s stuff like this that will push up pay demands from others. These people pay themselves big rises whether the economy is good or bad. New research out today shows consumer confidence down. Britain is heading for a double dip, theres a prinme minister telling the public ‘we’re all in this together’, if we are then these issues need to be addressed and if necessary regulated.

  3. It’s cherry-picking for sure. Typical lazy minded journalism from those who seem to lack any understanding of how business works. If you succeed, then that is great. If you fail, out you go. I’d love to see the same standard applied to Public Sector, that bastion of socialism.

  4. If you succeed, then that is great. If you fail, out you go.

    Like you in upper bann then you came back for EB? What motivation is for those at the bottom, like cleaners who can pay more than those at the top in taxation? Like the judges in the south whose pay is now being voted on, everybody should pull their weight…

    Fair rule, the more you earn the more tax you should pay. Simples.

  5. oops!

    1. Public sector increases are negotiated over a multi year time frame, and start from a considerably higher starting point than similar jobs in the private sector. A halt in their automatic annual rises will at worst put them on the same level as workers in the private sector.

    2. Inflation rates are too easily manipulated, quite apart from varying in effect across different sectors of society, i.e pensioners and the house bound disabled are more affected by fuel costs than other sectors. To quote an overall ‘rate of inflation’ is no more than a spurious piece of data, to be used or abused, as government and others see fit.

    3. Salaries of private companies are subject to market variables and pressures, the criticiam is of publicly traded companies where remuneration is often so complex that even the Board has difficulty in understanding it. It rarely has much relationship to skill, expertise or acumen in management, or the general success of a company, but more to do with grabbing ‘the main chance’. e.g. that bank fella, ‘Fred the Shred’.

    Many present day B.of D’s bear more resemblance to the notorious ‘asset strippers’ of the 70’s and 80’s than to competent managers who recognise their responsibilities to their current and future shareholders.

    That such remuneration is often at the discretion of non-excutive directors of the same company, i.e. ‘all members of the same club’, ensures that the remuneration is invariably over generous. Shareholders, and in particular non-corporate shareholders, have litle say in determining remuneration. Hence the decline in private shareholders as averse to corporate shareholders, i.e hedge funds etc.

    4. While agreeing that the government should not overly interfere with the day-to-day running companies, those companies that abuse the trust placed in them by their shareholders and customers, and especially as such abuse has become commonplace, – there is certainly a place for government to correct such abuses when it becomes so rampant, as now. It is all part of their remit to maintain law and order, across all aspects of society.

    It would be fair to remind those ‘grim and greedy’ directors, that apart from shareholders, customers and staff most certainly do have some input into the continuing success of their companies, after all, there can be no marketplace without customers, and no company without workers. They ignore them at their peril.

  6. Erudite as ever, Ernest. And I fully agree.

    Kateyo – the more you earn the more you are taxed. And btw, the bottom 45% of wage earners pay no net tax.

  7. The bottom 45% of wage earners can barely afford to live never mind talking about tax.

    No-one earning less than £18K should have to pay tax and those earning over £50K should pay the top rate.

    We as a country are sending money abroad, bailing out banks, bailing out other countries when the poor and old in our own country have quite literally to decide whether to eat or heat – such is the cost of having a warm house. Not much to ask is it in the 21st century. That’s the obscenity that is Britain today. And I haven’t got started on the young unemployed who can get neither jobs nor apprenticeships. When we have multi millionaires in the Government to whom money is no object how can you expect anything different and how can they possibly imagine the plight of the aforementioned groups of people?

  8. The corporate sector is performing so well that their execs really earned their 50% uplift. Through their great efforts, our economy has been saved and we can look to the future with optimism knowing that such capable people are at the head of our corporate sector. Imagine what the economy would be like without them.

  9. Success SHOULD be rewarded, and failure punished. That’s the point of all of this.

    No it’s not. They have such ludicrously complicated “incentive schemes” that most of them are guaranteed vast bonuses irrespective of the results and share price. It’s a scam.

    But I agree that the state has no role to play. It’s up to the spineless shareholders to stand up for their own interests and slap down the greedy mediocrities who are ripping them off big time, year after year.

  10. Marlloy,

    ‘That’s the obscenity that is Britain today.’

    And is far more the fault of bad government and political cronyism than of capitalism per se. Each of the major parties being equally at fault, ably abetted by an anachronistic trade union movement that insists on fighting a ‘class war’ that they never could win, and as bad losers, and in whatever sector they pretend to represent, have adopted a ‘do as much damage as possible’ philosophy. – And yes, that is also the obscenity of Britain today!.

    From Labour politicians that are forever seeking to divide and conquer, to Tories that fought a system of nationalised industries to a virtual standstill, and in the process not only destroyed communities, but the very industrial base they were trying to cleanse.

    That’s also part of the obscenity that is Britain today.

    Whatever your shade of politics there is no denying that our politicians have betrayed the majority of the electorate over many decades, from Labour’s desertion of the ‘working classes’, to the Tories pandering to any foreign entity that was prepared to listen, and both sacrificing what little integrity they had for any idea or scheme that might bolster their excessive ego boost addictions.

    Both parties are guilty of excessive partisan loyalty rather than any national loyalty.

    That too, is part of the obscenity of Britain today!

  11. Well said Ernest.

    Goldman Sachs were recently let off £10 million of interest on overdue tax when one of their scams collapsed. But if I owe HMRC £100, they will grind me into the dust to get it.

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