Follow by Email

Wednesday, 26 August 2009

High pay stuff

Polly Toynbee on high pay in the City:

[the City is] untouchable, it shows no remorse because it frightens the politicians, not the other way round.

On Capital flight:
"What of the threat that they will all flee London if astronomic pay is challenged? "Hyperbolic nonsense," says Cable, in those deceptively moderate tones that out-smart Labour every time."

"Hector Sants, head of the FSA, replied tartly that capping City pay is the job of government not the regulator. Politicians, he said, were "passing the buck" and it is not the watchdog's job "to bring about social change". Absolutely right. But outsourcing politics is now the fashion: quangos are the place to deposit anything politically difficult, while government loses belief in its own powers."

Now that is interesting. While many politicians are being criticised for being bland managerial-types with no ideology, this would make sense. Because the ideology is kept beneath the surface, they feel the need to 'outsource' politics to escape having to make difficult and potentially decisive decisions. Shame, some strength of (lefty) will is just what's needed.

"The idea of a high pay commission has had plenty of support from Labour and Lib Dem MPs, including Jon Cruddas and Vince Cable. Cheekily, Compass asked Osborne to sign up: don't hold your breath. The official Labour response was dismal: "It's a return to the 1970s" was the predictable objection, in step with the Times leader. But no one is suggesting a prices and income policy. The idea is to set benchmarks so companies consider a reasonable ratio between top and bottom pay: FTSE 100 ratios have shot up from 15:1 to 75:1 in just 20 years."
Now that is interesting, and explains New Labour down to the ground, the fear of the ghost of Old Labour. The present leadership are so scared of being Old Labour they are willing to go to almost any end to avoid it, costing vital core support.

Toynbee's assertion that information on pay would open up and transparency element is a welcome contribution. As she puts it "Most people on £42,000 don't feel rich because they don't know they are in the top 10%"
Anything that makes a more equal society is to be welcomed

No comments: