Now he stands wide-eyed with shock at the consequences, with eloquent pen to capture what he sees. The facts are neatly arrayed: chief executives’ pay in FTSE 100 companies rose from 45 times to 120 times more than the pay of average employees. Money didn’t trickle down, it was sucked upwards; the share of national pay going to the lowest earners fell steeply over the last three decades, half the population getting just eight per cent of a doubling in national income. Even after the crash, the pay packages of FTSE 100 directors soared up unabashed, rising 49 per cent in 2011 alone.
‘We did not expect this and most of us are at a loss to understand exactly what has happened,’ Mount writes. If globalisation destroyed the jobs and pay of erstwhile well-paid industrial workers, why is that same globalisation used to explain the inflation of top executives’ pay, instead of levelling them down too?, he asks.
Err, because globalisation increases in country inequality?
By exposing everyone to more competition: and those very few who win the global competition are raking in the winnings of having beaten global competition, not just national.
half the population getting just eight per cent of a doubling in national income.
On the falling pay of the bottom half of earners
Pay rising not as fast, pay rising unequally, is not the same as pay falling.