Daily Archives: Monday 6 February 2012

Kicking the crutch

Bankers, the targets for so much vilification, are not usually noted as great philosophers.  But perhaps they have been judged unfairly if this observation, by former Deutsche Bank CEO Hilmar Kopper, is true:

As a banker, you have no lack of opportunities to look into the human soul.

Although what the bankers see there is unlikely to inspire much compassion for one’s fellow humans, if his next comments – taken from a candid interview with Spiegel International – are anything to go by:

This entire nation, the entire world, is ultimately running after money. The amount of influence money has on people has always fascinated me. You forget almost everything while in its shadow.

Yet chasing money has never seemed so futile as it does once it is revealed how much of it is controlled by so few.  The publication of a study showing that a core of 1,318 companies control 20% of global operating revenues directly, with perhaps another 60% via shares, should make it obvious how stacked the dice have been in this particular casino.  Compared to such power, political influence is puny and easily bought off.  Money and the control of it have become more important than the lives sacrificed on the way to a balancing of the metaphorical books.  This is nothing new, but while times were good we could convince ourselves that all was fine, so long as it wasn’t your head in the vice.

The economic crisis has thrown that complacency out of the window.  Once-great nation states have been reduced to the status of housewives, clucking over their shopping lists while wondering if the grocer will extend enough credit to keep meals on the table until payday arrives.  And while economists bicker over whether we are in or out of recession, whether inflation or deflation or stagnation is the biggest risk and whether too much or not enough austerity is the best cure, the real effects are felt very far away from the boardrooms and treasury offices.  As Thompson writes:

Government borrowing… replaces a lack of private sector spending. It is a crutch. If we kick out the crutch out from under the economy, it’s possible that this patient will learn to walk very, very quickly.

Or it is equally likely that it will fall on its arse.  From Spain to Ireland to Portugal and the UK, the argument that austerity is killing Europe seems unassailable.  Yet adding additional borrowing to the terrifying debt mountains in an attempt to spark more growth brings its own misgivings, not least because it seems like robbing future generations to pay for such essentials as the Olympic Games and bank bailouts.  The UK’s Coalition Government has been quick to seize on these misgivings as justification for their zeal in cutting budgets to ‘make savings’.  These claims have been challenged by a report commissioned by disability activists – nicknamed the ‘Spartacus Report’ – which notes that:

Cuts to DLA [Disability Living Allowance] cannot cut disability, they simply shift the costs elsewhere. One in three disabled people already live in poverty and many feel [the] proposals… can only see this increase.

This demonstrates a move from a metaphorical kicking away of the crutch to an actual one – with even massive public opposition, including that of their own supporters, failing to prick at what remains of the Coalition’s consciences.  Instead, politicians are demonstrating compassion towards the captains at the controls of our current financial tailspin, while stamping down hard on the unfortunate ones with chronic conditions or terminal illnesses.  This will save £94 per week per cancer patient so that the millions can still be handed out in bank bonuses.  It is  little wonder that bankers see chasing money as a futile endeavour, when they can screw everything up so royally and still have it land in their bank accounts!

Leave a comment

Filed under Miniplenty