When the Coalition government decided on budget cuts and austerity measures, it claimed that by reducing the scale of the national debt we would restore the fiscal integrity of the state and prevent default. That would appease the financial markets and ultimately restart economic growth. They said that we are all in it together. This last claim certainly proved hollow.
A recent report by Incomes Data Services (IDS), found that in the last year alone top executives’ pay has actually gone up by up to 50% at a time when the public at large is expected to accept cuts in services, cope with rising inflation, job insecurity and pensions squeeze. To add insult to injury the performance of the companies that these executives ran did in no way match the pay they awarded themselves.
For information on IDC report see http://www.bbc.co.uk/news/business-15487866
But there is nothing new about these rises; this trend has been going on for some thirty years. An enquiry carried out by the High Pay Commission, found the pay of top executives had increased by more than 4,000% in the past 30 years, compared to a mere threefold increase in the average salary, massively widening the gap between the highest paid 0.1% and the rest of British society. In 1980 the pay at the top was about 13 times the average pay, while in 2010 it rose to a staggering 169 multiples. Such disparity has not been seen since Victorian times.
For information see: http://web.orange.co.uk/article/news/high_executive_pay_angers_public_report_says
The unacceptable levels of pay are the natural outcome of greed going unchecked due to lax financial regulations and the ever increasing power of the multinationals some of whom are now bigger than many medium size countries. A recent study by Federal Institute of Technology Zurich (ETHZ) has established that 147 Multinationals actually own 40% of the world entire wealth.
For more info: http://www.swissinfo.ch/eng/business/Multinationals_power_must_be_kept_in_check.html?cid=31486960
Furthermore, they all seem to have interest in each other making them an extraordinarily powerful web, in some cases they are more powerful than the president of a small or a medium size state.
The concentration of wealth in the hands of the few is very damaging to society for in the long run it creates social tension. This might erupt unexpectedly (perhaps the latest riots were a sign of this). What is more disturbing, it seems that these multinationals with their enormous power and wealth, their manipulation of the media are able to indirectly dictate to governments. Have you ever wondered about the invasion of Iraq in 2003? We know that the war was based on lies and that it was not legal. The war caused untold damage to Iraq’s infrastructure, thousands of deaths, brought the country close to civil war and installed a corrupt government. But it was no less painful for the US and Britain, both of whom suffered in terms of loss of life and the sheer cost of operations (paid for by the taxpayer). So who did benefit? You will probably be able to trace it to those with vested interests in oil, weapons and phoney construction contracts; in other words you can trace it back to those multinationals.
Now to the so called ‘Credit Crunch’. Who caused this crunch? In a big part, it was the greedy bankers who emptied the bank coffers rewarding themselves handsomely at the expense of the public. Note how quickly governments went to the help of the bankers with stratospheric sums of money (tax payers’ money of course). Note also how not a single banker was investigated. Contrast this with the MPs expenses scandal which pales into insignificance by comparison.
More recently, we have the European debacle. France and Germany pushing for more European fiscal integration so that their banks do not suffer should the Greeks and the Italians default on their debts. In the meantime the UK government refuses to join in because the agreement threatens the position of the bankers in the City of London. Clearly all these governments are paying lip service to their bankers.
We need to wake up. Our society is under threat, our democracy is under threat, we need to check the power of the banks and the multinationals before it all unravels in an ugly way.
I am sad to say that I find myself in full agreement with your analysis. Capitalism has certainly been high-jacked by the super rich and the multinationals. What we as ordinary working people are experiencing is the ugly face of capitalism. The greed and selfishness exhibited by the boards of multinationals and banking institutions will eventually lead to dire consequences if they remain unchecked. We seem to be heading back to Victorian values. Our children are providing free labour under the banner of internship! I fear for the future of our children and the future generations. This social injustice and despair will eventually lead to unrest and threaten our precious democracy.
Unfortunately, the majority of those in power seem to have a vested interest in these institutions, feathering their nests and keeping their seats in the boardrooms warm for when they are no longer playing politics!
For the sake of democracy and justice for our future generation, we hope that those in power with a social conscience will manage to check this evil.
I largely agree and what I cannot understand is why many top brass in the corporates feel that they need such a large amount of money. In the 19th century and to a lesser degree in the 20th rich industrialists were happy to share a proportion of their riches to help orphans, widows and the poor. They built housing, hospitals and schools out of their own pockets, a sentiment that seems to be sadly lacking in today’s top echelon.