8 comments on “Timmy elsewhere

  1. I think you need to distinguish between GPs and doctors, but the highly paid examples of the former are, in effect, the CEO of an small business with a valuable government backed franchise.

  2. Shock horror revelation – owners of small businesses don’t earn vast sums. And what about dividend income of private companies, where the CEO probably owns the company?

    And US doctors are a significant part of the famous 1%, and feature in the 0.1%.

    You’d take the piss if this was in the Guardian.

  3. @: Luke
    The point is that everyone thinks doctors are wonderful selfless people (and, based on my own experience of the ones I know personally they are pretty good and pretty unselfish) and CEOs are pure greed with no added value to support it.
    In fact a lot of CEOs work very hard for their money – for the one with whom I have most contact a normal working day is over 12 hours *excluding* meals (he replied to one of my emails at 5.32 this morning but usually he doesn’t start until about 6.15/6.30 when he’s driven to the station and caught the train).
    If the papers said “all the rich people are rich because they are being rewarded for wonderful selfless work, like doctors and nurses caring for the sick until they drop from exhaustion and members of the fire service paid overtime for sleeping at the fire station and legal aid solicitors paid £1m a year for representing poor people who cannot afford a lawyer”, there would be faux outrage at Osborne demanding that they pay more tax.

  4. Bang per buck for people providing a personal service, GPs have got to be generally the worst value for money of all.

  5. John 77,
    We are at cross purposes I think. The study relates to US doctors, who earn shedloads, deserved or not, but shedloads. It then compares them to “CEOs” of all companies, including small companies. You and I know that includes corner shops. And small companies are owner managed, so the wages of the “CEO” (ie dad, the owner of the corner shop) are supplemented by dividends.

    I’m not some sort of uncut anti capitalist. This is just a bollocks of a statistic – basically saying that some humungously rich people (US doctors) earn more than less rich people (owners of small businesses). And it leaves out that doctors just get wages, no divis or capital.

    Just bollocks. Proves nothing to anyone.

  6. @ Luke
    Definitely at cross-purposes. I was looking at UK – no, we don’t have data on pay for CEOs of most unlisted companies, but it can be calculated quite easily that most of them earn less than the average UK doctor – even including dividends. We do have data (albeit slightly out-of-date) on the distribution of income of households where the principal earner is self-employed and for the majority of those the *total household income* is less than the average for doctors. Quite a lot of UK doctors are in the 1% – recently the FT ran an article on who could afford to buy houses in London now, compared with those living in houses they bought 30 years ago and the “uber-middle” comprises bankers, lawyers and doctors. Yet the media spreads the story that the rich are all parasites.

  7. Footnote:
    There are more than 2.5 million “active” companies (i.e. excluding dormant companies and those in the process of being wound up) registered at Companies House. Quite a lot are subsidiaries of other companies, but some 1.4million are separate businesses. The number of CEOs is c.3% of the adult population so not all can be in the top 1%
    ONS says that there are 4.9 million private sector businesses including self-employed, partnerships and unincorporated businesses like the corner shop and that 99.9% of these are SMEs and an overall majority are not registered for VAT because their total revenue is below the VAT threshold. Since the VAT threshold was £77k, rather less than the £104,000 average pay of a GP, the profits out of which the owner/CEO is paid *must* be less than doctors are paid.
    QED

  8. Oh dear me . Back in the fifties a doctor in his first job got about six hundred pounds a year.
    What happened ?

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