Will Hutton: the economist who doesn\’t believe in economics

\”I think great organisations are ones in which everyone puts their shoulder to the wheel,\” Hutton continues. \”If I\’m right, and that happens more in fair organisations, then they will become the more high performing organisations.\”

OK, this is with reference to his pay review thing.

More equitable pay awards will lead to more shoulders to wheels and thus better performing organisations.

Could be, how would we actually test this?

The better performing organisations will be the ones with higher profits, that\’s how we keep score.

So, are the companies that make those big fat profits the ones with more equitable pay distributions?

Erm, no, doesn\’t seem so, does it? In fact, rather the opposite.

Which is where that noted economist, Will Hutton, is ignoring his own discipline of economics. For if it were true that more equitable companies outperformed less such then the market would currently be dominated by more equitably based companies. And the very fact that Hutton is wittering on about the inequity of pay distribution is the very evidence that disproves his contention that more equitable pay leads to outperformance.

3 thoughts on “Will Hutton: the economist who doesn\’t believe in economics”

  1. It’s not even economics, really.

    You don’t redistribute high earners salary to low earners, because that is taking away from the high earners and they’ll leave (or wont be as willing to shoulder the wheel).

    Similarly, when the company makes a profit, you can’t give most of it to low earners, that’s the same as taking away from the high earners again.

    The only solution is to distribute proportionally, and if you double everyone’s salary then the equality gap gets bigger, but what is forgotten is the low earner is now on double salary.

    Same argument as GINI.

    Maggie made this point decades ago, but the leftists still refuse to believe it.

  2. If economis were a science people who put up theories & make no attempt to check for evidence would be drummed out. In fact such people get lots of government money for saying whatever government wants. This is why politically directed money is the death of science. When Hubert Lamb established the CRU it was a real scientific ibstitution, which was absorbed bt state parasites.

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