Thursday, 22 January 2009

Questiontime - The End of Capitalism!

Bizarre Questiontime tonight.

I really couldn't understand why everyone had such a problem with Northern Rock employees being paid a 10% bonus this week. When the Rock was Nationalised the staff were offered a deal and very sensibly were offered an incentive to motivate them - must have been a tough job with all the redundancies etc. It wasn't excessive it was just 10%... So what is the problem? Why did no-one in the audience or on the panel make this point.

Does no-one recognise the validity of incentivising people to do a good job? This is worrying. Has the financial crisis now made people believe that capitalism has failed and so now everyone is turning to socialist principles? - The Conservatives need to be wary of this. The big arguments were never won by Mrs T in the 1980's - a large part of the country simply don't understand the profit motive and the point of markets..

We are in a financial crisis caused by bank failures, which in turn was caused by the Govt either being blind to what was going on (incompetence), or turning a blind eye and allowing everyone to interpret the false impression of govt creaeted prosperity out of mindless money creation by the banks.


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