Osborne - pro-business or anti-society?

Osborne seems to feel that the anti-bonus sentiment represents an anti-business culture. I strongly disagree. Let's start by talking numbers: Assume the average UK salary is £25,000. Assume an obscene bonus of £1,000,000. By doing the math, this means that the bonus for one individual could fund the salaries of 40 individuals. In the current climate of austerity and rising unemployment, it seems crucial that actions taken benefit all of society not just individuals. More people in employment means they have less time & desire to protest. Which implies that they might be less likely to riot. Employment will ensure that they develop skills and experience for their CV's; they will have spending money to keep the economy moving. And of course, they will be less likely to need to rely on benefits which means that we all benefit.

And for the record, I don't oppose rewarding success, I just feel it should be proportionate. A 20% bonus for a £250,000 salary is £50,000. That is a very just reward for success and still represents double the average annual salary of a UK employee. Furthermore, I have difficulty in believing any manager or CEO is ever held sufficiently accountable to justify any bonus in excess of this value. Nor do we need to act as lemmings; just because this behaviour may exist elsewhere does not justify following suit. Someone needs to be the bigger person. If the current Con-Dem government aren't up to the task, I'm sure there are those that are. Anti-bonus is not anti-business, it's pro-society. It's just common sense.

Wealth redistribution and council tax for second properties

Following from the recent article in the Evening standard regarding absent tenants in premium flats: http://www.thisislondon.co.uk/standard/article-24027575-absent-owners-turning-pound-12bn-one-hyde-park-into-mary-celeste.do, I feel that landlords and second property owners should be liable for full council tax. If they can afford second properties, they are affluent enough to pay taxes just like the rest of us. For most British residents, owning property is a pipe-dream unlikely to happen in our lifetimes. So why should the burden of council tax be applied disproportionately for tenants in rented property and second property owners?

If councils get tax from 'part-time stunt' residents as well, then perhaps there will be more money for social housing, libraries, and the entire community which will benefit society and reduce crime. I feel that landlords and second property owners should be liable for full council tax. If they can afford second properties, they are affluent enough to pay taxes just like the rest of us. For most British residents, owning property is a pipe-dream unlikely to happen in our lifetimes. So why should the burden of council tax be applied disproportionately for tenants in rented property and second property owners?

Wealth redistribution must start somewhere and this seems as good a spot as any. No time like the present to change the world!

Is it time for Sir Fred Goodwin be stripped of his knighthood?

A letter in last night’s Evening standard has got me thinking. I've previously tweeted that I feel Sir Fred Goodwin should be stripped of his knighthood if for no other reason but to restore validity to this honour. Although my tweet was retweeted, it petered out rather rapidly and I left it at that. But prompted by the letter by Benjamin Ramm, I did some Googling and the results were rather interesting.
(It appears that letters to the Evening standard require a subscription so it is not possible to include a link to the text of the letter although if you search for Benjamin Ramm under the Standard E-edition you can locate an abridged version of the text of the letter).

According to a report in the Express, 2/3 of those in Scotland also feel that he should be stripped of his knighthood. http://www.express.co.uk/posts/view/290624
And as indicated above, my motivation is not revenge, nor driven by an 'eat the rich' angst in the current climate of austerity; merely a desire to make things right.

Following the London riots, the courts have been quick to impose extended sentences to many of the rioters. And I agree that their actions are indefensible, however I have elaborated in previous posts that I'm not certain prolonged prison sentences reflect the best solution to this problem. http://madmenachi.blogspot.com/2011/08/english-revolution.html
Recidivism rates are higher among criminals who are imprisoned rather than given community sentences. http://www.guardian.co.uk/uk/2010/nov/04/jail-less-effective-community-service
In my opinion, it seems clear that the wanton damage resulted from a feeling of exclusion from society. If the rioters were given reason to feel part of a community, e.g. took part in the rebuilding, they might have more sentiment towards not repeating this pattern of destruction. Notably, despite the vast cost of the damage caused by the London riots, this damage will not impact on an entire generation, in contrast to the reckless behaviours of bankers which precipitated the current economic situation.

The actions of Sir Fred Goodwin, during his term at the helm of RBS played a significant role in precipitating the current climate of economic austerity; actions for which he received a knighthood for 'services to banking'. Yet he has shown no humility for his actions, initially refusing to renegotiate his exorbitant pension, and even now remains obscene in comparison to the average wage for those currently in work in the UK. As a reward for ruining the British economy, Sir Fred Goodwin retains a £342,500 annual pension, which contrasts to the average UK wages of: £30,819 for males & £24,034 for females (a fact which deserves a blog unto itself...!)
http://career-advice.monster.co.uk/salary-benefits/pay-salary-advice/uk-average-salary-graphs/article.aspx
http://www.guardian.co.uk/business/2009/jun/18/rbs-sir-fred-goodwin-pension
Moreover, in times of austerity, there are many who are driven to suicide by poverty: http://www.metro.co.uk/news/111319-driven-to-suicide-by-debt http://www.metro.co.uk/news/881265-charities-demand-inquiry-into-couple-driven-to-commit-suicide-by-poverty

Therefore, not only do I feel that retention of the honour of knighthood by Sir Fred Goodwin devalues this honour, I feel that it is also deeply offensive in light of those whose lives will be lost in the coming years partly as a result of the reckless and irresponsible behaviour demonstrated by Sir Fred. This behaviour should not be rewarded, and at the very least, humility should be demonstrated.
Sadly, the policies of Cameron and his coalition are rarely proactive when it comes to imposing austerity equally onto the rich and wealthier classes. And as protests and demonstrations appear to be largely ignored, it seems that alternative strategies are necessary. However it would appear that the media are more successful at encouraging Westminster to 'do the right thing'. So I have included a brief text at the bottom of this post of my letter to the Evening standard detailing my view. Perhaps if public opinion were to be collated in this manner, Westminster might be more inclined to review their collective opinions in this matter. If you agree, you are welcome to use the wording below, or alternatively compose a letter yourself. But I can no longer abide by silently expressing tacit approval for this situation.

Subject: Sir Fred is a knight without honour
Dear Evening standard:

Further to your published letter from Benjamin Ramm dated Wednesday January 4th, 2012, I also feel that Sir Fred lacks the decency and humility to retain the honour of a knighthood. Moreover I feel that it is overdue for Parliament to take action to defend the integrity of the honours system by demanding that Sir Fred Goodwin be stripped of his knighthood. Perhaps if the Evening standard were to collate letters demonstrating public opinion, or include this into a 'daily vote', Parliament would take greater notice.

Yours sincerely,

The Evening standard letters Editor is Joshua Neicho and his email address is: letters@standard.co.uk