Adam Smith said on the subject of capitalism: “It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard
to their own interest.” Replace butcher, brewer and baker by banker, and dinner by growth. Is the media fooling the mass by taking a socialist stand on this matter? Yes and purely because the “Anglo-Saxon” capitalism weighted to the left.As Joseph Conrad said, work makes us sane. Thus through decades, our civilization has adopted the carrot and stick philosophy.
The issue of the bonus incentives makes head news in most media platforms. The common thought is that the easy cash the banks were offered as huge subsidies were to enhance bank’s lending and capital growth, not to pay staff. This is a fact, not a point of view. Some strong headed banks stuck to their traditions and offered the bonuses. The result of this macho behaviour is the 50% tax on high earners.
London used to be a top financial hub, attracting foreign and local investments. It is now in great danger. The high levy on bank bonuses is a warning sign that London is running short of carrots.
