Capping high pay along the lines suggested by Compass is very appealing to lefties like me, but Chris Dillow has explained excellently why this would be wrong and how we should cap pay through workers democracy instead.
New Labour lackeys like Tom Harris, Alistair Darling and Gordon Brown et al don't want to do anything about excess pay, which is hardly surprising - these guys are just Tories who have infiltrated the Labour party. They argue that it won't raise much money - a typical Tory argument that completely (deliberately) misses the point.
As Chris explains - it is the POWER of the bosses that needs capping and stopping bosses earning excess millions is just a nice moral side effect of giving power to workers.
The idea of a workers democracy, where workers choose bosses solves the problem of blanket caps on salaries which scare off the productive people we want to keep, while cutting the wages of the high paid parasitical scum who really do damage the economy.
JP Morgan has put in place by the end of the year $10 billion to be split in wages and bonus payments, which will give everyone working for the bank about $350,000 but as we know not everyone working for JP Morgans will get a bonus, so it's estimated that the people at the top will get between 10 or 12 million and the people at the bottom will get $500
ReplyDeleteIf that does not need sorting out then i do not know what does...