It is most of us who are paying for their foolhardiness, as the pricking of a financial bubble they created has a negative impact on all our prosperity. Months, possibly years, may go by before banks are prepared to lend as freely as they had been doing. The price of money is going up for all of us, and the economy is slowing down, because regulators and governments did not dare stop the over-exuberant behaviour of greedy traders, bankers and financiers. In fact, the Government encouraged the excesses of these super-rich individuals and their financial servants because they were thought to be good for London and good for Britain.
This is the sort of rant I\’d expect from an 18 year old student organiser published as a joke at CiF. Apparently not though, it\’s from Robert Peston and it\’s in the Telegraph.
has the freedom of investment banks, private-equity firms and hedge funds to buy and sell what they like, when they like, gone too far?
No? You know, this freedom and liberty thing?
In a whole range of businesses and industries, the talent of individuals is rewarded in tens of million of pounds, while the relatively poor are getting poorer.
The poor are getting poorer? Really? Got some figures to back that up? That living standards are actually falling?
For a variety of reasons – technological, regulatory, economic – increasing amounts of wealth are sticking to individuals with special talents, rather than being dispersed to the owners of public companies or being siphoned off by the state in the form of tax.
Excellent, isn\’t it? If the returns to talent rise then talent will be encouraged to exercise itself. Known as "incentives" and it\’s the very thing that drives the human race ever onwards and upwards.
In other words, globalisation has been wonderful for anyone with a special talent capable of generating incremental revenues. The crucial word here is \’incremental\’. If you can demonstrate that you have the magic to generate additional revenues, then you can do very nicely. The reason is that the market for the fruits of your talent is bigger than it has ever been. For many products and services, an almost seamless, all-day-and-all-night, worldwide marketplace with billions of customers has been created by the internet and the dismantling of barriers to trade.
Have to agree with him here, it\’s a point that I\’ve been making for some time. Globalisation does indeed increase income inequality: because those few who can make it on hte world stage can export their talents to 6 billion people.
But the biggest cost from the swelling of the super-rich class is an erosion of the fabric that holds together communities and the nation.
Been reading Polly T again?
And they would never surrender their right and ability to move somewhere else should the financial tariff for staying in the UK rise above an unspecified threshold.
Of course. Nor would anyone else: known as freedom. If you don\’t like the way one State is treating you, leave and go to another one more to your liking.
Only a limited number of very big businesses or stunningly talented entrepreneurs can actually up sticks to anywhere in the world, if the tax rates here are not to their liking.
Bollocks: your humble blogger has done it. There\’s another half a million just over the border in Spain as well.
I don\’t think I\’ll be bothering to buy this book: it\’s tripe.
Really: a very Tory denigration of trade and the way it upsets the established social order.