Sunday, 28 December 2014

The dividends in the post.

It's the season of good will or at least it is supposed to be !
The question I want to pose is. Is a society made up of individuals or is it a collective term to describe everyone. 
When having posed that question one has to ask, is it right to punish particular sections of society with laws which dictate for instance :- "That people out of work are scrounges". 

The demonisation of societies 'underbelly' has been going on for years and as with any oft repeated slogan, it has been accepted by most people as fact !!
In a market economy the fittest survive and the rest are thrust mentally out of sight.
The argument that society can not afford to carry the weak is a mantra which Milton Friedman and his oft quoted belief that "the only purpose of a company is to make money for its shareholders" would subscribe to. 
There are some of you reading this blog who would agree and argue that it's not the business of business to concern its self with the society at large, their job is to maximise the return to shareholders.
Of course if we were marauding wild dogs this might be the case (although I seem to remember the wild dog packs protected all members of their pack recognising that their strength lay in the protection of their own) but we have been blessed with the mentality to construct a way of surviving, not by laying waste to others but in husbanding not only the talents of society but concerning ourselves with the weak and the frail.
Listening to a young, recently graduated university economists base his economic argument on mathematical certitude that the successful are valued and the unsuccessful are a drain on resources, makes the statement blindingly obvious but crass in its simplicity. Of course there are scrounges unwilling to find work and pay their way just like there are accountants who spend their time discovering new ways for their rich clients to avoid paying their tax !! Is one more guilty than the other ?
I was astounded to learn that whilst we often think of"benefit payments", much like we used to think of the dole, a payment to the out of work or the disabled . By far the bulk of 'benefits' are paid to people 'in work'. In this case the taxpayer simply adds a "benefit payment" to prop up the minimum wage. A ever increasing section of society on minimum wages ( wages the employer deem they can just afford and still make a profit ) have to receive extra money from the state (taxpayer)in an attempt to ensure they receive a "liveable wage".
And so, often unrecognised the ordinary man in the street has become a capitalist he contributes to the success of many small /medium to large firms in their drive to cut costs but he will hold his breath a long time if he expects a dividend !!
 

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