EU Banker Bonus Cap is Socialism to the Highest Order

Posted by admin on Feb 28, 2013 in Blog | 0 comments

If those guy in Brussels wanted to be controlling how much the market choses to value labour, why didn’t they run for seats in the Chinese Communist Part or the Russian Duma?

We live in a free market economy – free market Mr. Barroso and co. In the free market, it is the market that determines how much they like to pay for product and services.

It is bad enough as it stands to have government setting minimum wage which to an extent is very necessary to prevent exploitation of workers. However, when it comes to the decision of how much businesses pay their senior management, it should be left to the businesses to make that decision not some politician.

They are paying themselves twenty thousand euro per month while they ram austerity down the throat of millions of ordinary people. They even have the audacity to ask for more now they want to regulate what businesses pay their workers?

The free market compensation system was structured in such a way that the more value a worker creates the more compensation he/she receives.

Athletes, footballers and entertainers get paid thousands of times more than the average because they provide thousands of times value than the average person.

I have just listened to Total Recall the autobiography of Arnold Schwarzenegger. In it he explained how difficult it was to act in some of the films he did. He made particular mention of the difficulties of making Conan. In one of the films, he said he almost died. He was on a horse that went so close to the edge of a high rise building that if it was not for the quick reaction of his cameraman he would have been dead.

Someone watching the films would have no ideas what he went through making the film and they might complain that he get paid twenty million dollars? As if there are lots of people in this world who are capable of doing what he did.

Those bankers are responsible for making billions of pounds worth of decisions. They get a single decision wrong as we saw in 2008, it can be catastrophic. Getting a single decision right can bring enormous benefit to their shareholders.

What we see on the news are the decisions they get wrong. With one decision they get wrong, they get thousands right and we do not see those on the front pages of newspapers.

However, the aim of this article is not to be an evangelist for bankers, they can fight their own battle. My concern is with politicians interfering with business decisions in a free marketing economy. When they succeed in regulating bankers pay the next person’s pay that might be in their line of fire is yours.

Think about it!

EU Banker Bonus Cap is Socialism to the Highest Order

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