Post-crash economics

[extractorfan]

I accept that many 'high-flyers' and the 'super-rich' will clear off, or at least threaten to. Provide them with guides to the nearest airport/ferry and relieve them of their UK passport as they go If a person needs to earn millions while employees get Tax Credits to make up their wages, (that's HMG, so us tax payers, subsidising their profits,) a fairer society won't be for them anyway.

You mean companies will be run by people who just like living here!???

And also, people won't be allowed to use other people's work to get rich!

Jeeezus

[SleeperService]

You mean companies will be run by people who just like living here!???

And also, people won't be allowed to use other people's work to get rich!

Jeeezus

No, companies will be run with the whole company 'on side' by people who aren't focused on short-term issues. A minority of shares will be in the public (right!) domain allowing investors to participate as now. These two things alone will ensure that the company is in competent hands. Who really wants to see their company run, at huge remuneration, by an incompetent with the right connections?

Of course they can still get rich. Nowhere do I suggest otherwise. If everybody under the average wage pays no income tax then those above will pay tax ON THE EXTRA. What it will prevent is people getting rich by destroying companies and industries for a quick buck, leaving the rest of us to pay for the mess, and moving on to repeat the process elsewhere.

Modelzone, Jessops and HMV all driven under by the same management team. They were obviously not up to the job. If a worker in those companies underperformed they were fast-tracked to the Dole Office. Unless you were at the top.

There are ex-mining communities round here where people have been out of work since the pits closed in the 80s. Health issues, age, no relevant experience and no attempt to set up alternative work cost you in Ricky and me ever since. This has to stop.

[extractorfan]

You mean companies will be run by people who just like living here!???

And also, people won't be allowed to use other people's work to get rich!

Jeeezus

No, companies will be run with the whole company 'on side' by people who aren't focused on short-term issues. A minority of shares will be in the public (right!) domain allowing investors to participate as now. These two things alone will ensure that the company is in competent hands. Who really wants to see their company run, at huge remuneration, by an incompetent with the right connections?

Sort of like a cooperative? I can see that possibly working for large plc's although I have next to zero experience of how plc's work. I'm sympathetic to how the likes of HMV and Jessops went to the wall, they get too big to be able to adapt to a relatively sudden change in Market dynamics, digital photo's and downloadable content for example. In any company though I think the majority of employees are focussed on short term issue's. How do you select those that are 'on-side'. and once those 'on-side' people are selected doesn't that then have a demotivating effect on those not selected? Interesting concept though. I can see a time when those giants of food distribution, Tesco, Sainsbury's and the like go to the wall because the market will change to local produce being cheaper, as well as local distribution. The big plc's won't IMO be able to adapt to this model, they'll be too entrenched in a complex, massive system.

Of course, like any future prediction, I could be wrong.

I don't think people need to be able to get rich to be honest. They need to feel successful and currently money and horrible big houses are the metric used to measure success, it doesn't have to be so.

There are types of people in the world, used to be called classes. Some can run businesses and others can't, some can save money and others can't, some can fight wars or battles or are just good in a fist fight down the local pub. I'm sure there are others, but I think post crash economics will see a resurgence of the class system, but it doesn't have to be divided into rich and poor, in fact it may be impossible to divide that way as there won't be a lot of money in the economy any more.

[SleeperService]

It seems we are in some sort of agreement extractorfan

Your comments about large plcs is interesting and, I think valid. It could well be that the pressure would be to break up the large conglomerates into smaller groups or individual companies. That would reduce overheads even though it may increase the headcount at the separate sites.

Sort of a co-operative is how I see it as well, although there would be some paid more than others the multiple would be reduced. If the boss wants to earn say £175k then that would be fine if the lowest wage was say £25k. In some industries this would actually be desirable, like the retail chains.

Coupled with legislation to stop the devious increasing their package by having 'extras' free cars, phones, second homes, airfares for personal use, free private health, extra pension payments etc. that aren't available to all employees this would also reduce the atmosphere of distrust that surrounds most employment.

We can dream.

[PS_RalphW]

I heard (on the BBC ?) a recent report that analysis shows that the class system has a half life of something like 400 years. If you have the surname of a Norman invader given land in the 11th or 12th century, you are still more likely to be a rich land owner than the average UK bod.

Obviously some members of the family will fall off the gravy train, but direct inheritance is still a very good preserver of family wealth and priviledge.