This is the argument that the sort of people who receive huge salaries and bonuses keep telling us, that they can only attract the best and most able candidates for a job if they are free to pay what they determine that the job is worth. So for the last couple of decades banks and financial institutions have been mostly free to pay their top executives what they will, and it has been a huge amount.
By their own reckoning then, the financiers and merchant bankers must have been able to employ the very best, the absolute cream of the crop, the finest and most astute minds available to the business fraternity. And yet the economy is a staggering shambles lurching from one financial disaster to the next. How can they continually claim that their salary and bonus scheme argument holds water ? Or is it just the case that if we've got a bowl of rose scented water filled with gold flakes, then it doesn't matter if the rest of you are getting pissed on ?
Showing posts with label the economy. Show all posts
Showing posts with label the economy. Show all posts
Monday, April 2, 2012
Trickle Down Dries Up
Trickle down economics, I think that is just another way of saying "We're already quite rich and we'd like to keep it."
If you paid me £210,000 a year as opposed to what I get now then some of that money would trickle down and out into the general economy. I would dine out more, I would go on more holidays and visit more galleries, museums and other places of interest. I might buy a newer car and other toys, a tablet computer, a new camera, whatever the new 'shiny thing make people happy' consumer item comes on the market. So yes indeed, some other people would see the benefit of my enormous wage.
If however you paid me £30,000 and paid another 6 people £30,000 each, then another 6 people and their families would be doing quite well. I would think that a higher percentage of that £210,000 would be put into the general economy as seven people spending money are likely to consume more than one wealthy person.
Trickle down economics is therefore largely rubbish. What people need is jobs and a regular wage.
If you paid me £210,000 a year as opposed to what I get now then some of that money would trickle down and out into the general economy. I would dine out more, I would go on more holidays and visit more galleries, museums and other places of interest. I might buy a newer car and other toys, a tablet computer, a new camera, whatever the new 'shiny thing make people happy' consumer item comes on the market. So yes indeed, some other people would see the benefit of my enormous wage.
If however you paid me £30,000 and paid another 6 people £30,000 each, then another 6 people and their families would be doing quite well. I would think that a higher percentage of that £210,000 would be put into the general economy as seven people spending money are likely to consume more than one wealthy person.
Trickle down economics is therefore largely rubbish. What people need is jobs and a regular wage.
Friday, May 20, 2011
Spain's Youth Protests Ahead Of Elections
Youths defiant at 'Spanish revolution' camp in MadridCall for protest ban in Spain for elections
Youth unemployment in Spain is currently 43%. This situation is still part of the seemingly endless repercussions from the global banking crisis, and yet while hundreds of thousands of jobs are being lost across Europe month on month and essential public services are being cut, the people running the banking institutions that got us all into this mess are back claiming huge salaries and obscene bonus payments.
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