Oligarchs and the Free Market

The idea is going around, pushed by the New Economics Foundation, Half Sigma, and others, that bankers are worth less than janitors to economic growth.

While janitors have a wealth creation – to -pay ratio of 10:1, speculators are net drains on the world economy

Rather than being wealth creators bankers are being handsomely rewarded for bringing the global financial system to the brink of collapse

Paid between £500,000 and £80m a year, leading bankers destroy £7 of value for every pound they generate.

There is no question that our economic crisis is a direct result of the Oligarchs (a) betting money they did not have, and (b) illegally colluding with the Treasury Department to bail them out for those bad bets.

If the US Government had been serious about protecting a ‘free market’ system of the national security crisis they created, it would have destroyed the wealth of the Oligarchs companies, and drafted the needed bankers until such time as the wealth they had destroyed had been restored. However, the US Government is not concerned with reestablishing a free market system. The Treasury Department has been captured by the Oligarchs.

2 thoughts on “Oligarchs and the Free Market”

  1. Dan
    You might want to poke around the New Economic Foundation’s site before you take what they say at face value. For example [1]:

    “Moving towards much shorter hours of paid work offers a new route out of the multiple crises we face today. Many of us are consuming well beyond our economic means and well beyond the limits of the natural environment, yet in ways that fail to improve our well-being – and meanwhile many others suffer poverty and hunger. Continuing economic growth in high-income countries will make it impossible to achieve urgent carbon reduction targets. Widening inequalities, a failing global economy, critically depleted natural resources and accelerating climate change pose grave threats to the future of human civilisation.”

    It seems this is an organization which advocates for a global vowel of poverty, which seem antithetical to all of the real world evidence that wealthier is healthier. [2]

    As far as the bankers go, I’m all for holding those responsible for this mess accountable. Let’s start by repealing the $100 billion a year subsidy for real estate speculation [3] known as the mortgage tax credit.

    That being said, “bankers” often do wonderful things for America, for example, when they take a bet on a really smart guy with a great idea. [4]

    The challenge is to enact policies which discourage the former while encouraging the later. But I doubt Half Sigma and the neo-Marxists will add much value to that conversation.

    [1] http://neweconomics.org/publications/21-hours

    [2] http://www.csmonitor.com/Money/Donald-Marron/2010/0303/Are-Chile-s-building-codes-getting-too-much-credit

    [3]http://www.cnn.com/2010/OPINION/02/04/zakaria.budget.deficit/index.htm

    [4] http://www.cbsnews.com/stories/2010/02/24/eveningnews/main6239941.shtml

  2. I’m quite willing ot believe that NEF is a stocked clock. It doesn’t stop them from being right twice a day! 🙂

    As far as the bankers go, I’m all for holding those responsible for this mess accountable. Let’s start by repealing the $100 billion a year subsidy for real estate speculation [3] known as the mortgage tax credit.

    The Oligarchs are delighted by this sort of reasoning, as it directs the majority of pain toward the middle class. Politically the Oligarchs hide behind the middle class, and so are delighted by their enemies entrenching this alliance even further.

    I would start by indicting the Oligarchs, including Tim Geithner and Henry Paulson, for the criminal events of October 13, 2008. [1]

    [1] http://www.businessinsider.com/uncovered-tarp-docs-reveal-how-paulson-forced-banks-to-take-the-cash-2009-5

Leave a Reply

Your email address will not be published. Required fields are marked *