Saturday, 7 July 2012

Osborne set to fight for bank bonuses

There are two points here:
1) diplomatic / external: Britain is cornering itself into a misanthropic position which is wrong.  It is unhealthy to oppose a popular, majoritarian view without offering both something in return, and an alternative.  Telling the EU to stuff itself is arrogant and unrealistic.  Why doesn't Mr Osborne lead the pack and demonstrate which is the right system or remuneration.  Amount, level of disclosure, level of taxation, timing or structure of pay for the high echelons of management in public companies are very important.  You can't just tell the others "No, you are all stupid"

2) ideological / internal: The Tories get half of their donations from the City, and this has grown in the past years.  It screams "I don't care how the money is made, I don't care who made it.  All I care is the money is coming my way".  It tells this is a party for the privileged.  It doesn't show the Tories are unaware of the ordinary people's preoccupations, it doesn't mean the Tories don't understand the middle class psychology, it just shows they simply don't care.  They are on a mission to enrich themselves and their supporters, boom or bust.  They are unwilling to share their wealth, this was the ancestral DNA component that guides their behaviour.  Rip them off, give them nothing, accumulate as much as possible.

By the way, Belgium has more FDI inflows than Britain is spite of being more solidarian and social than Britain.  The FT mentions "But the UK is lagging behind the US, China, Belgium, Hong Kong, Brazil and Singapore, according to the annual World Investment Report from the UN Conference on Trade and Investment".

This should go beyond banking.  The executive pay should be capped to a multiple of the median total annual pay in the company, should be transparently linked to long-term performance, should be taxed progressively and aggressively, and should be structured very similarly for all employees.

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