Inflation for some
When I used to work in the City many years ago I went to my boss to point out that, due to an error by HR, I had been paid twice in December. Only to discover that the bank paid everyone twice in December, regardless of performance, it was the bare minimum bonus.
That was just as well for me as I lost the bank considerable sums of money in the short time I was there but it helps illustrate the latest findings by the IFS. City pay and bonuses are soaring, making the 1% of the richest immune to inflation or pretty much any economic shock.
I have always thought that much of the bonus culture in the City is down to the fact that the workers are very powerful, they can see how much they are making for their company and demand a slice of it.
This makes them think they are some kind of killer elite, better than the rest of us but they are just lucky to work in an industry where they can see what difference they make.
What would happen if a teacher, lathe operator or road sweeper was paid according to what difference they made?
Secondly, although City workers can see how much money they made, they don’t see the risk they have heaped on their employer, they don’t share that risk and they don’t have to bail it out when their greed brings it down.
That is left to the teacher, the lathe operator and the road sweeper.
The rich aren’t just different from us because they have more money, they are immune to risk because everyone else underwrites their insurance.
Remember that the next time some red in tooth and claw City type tells you they get paid more because they make money in a ruthless, competitive, free market, winner takes all bear pit.
They get a share of the profits, we get a share of the losses.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.