Tuesday, August 2, 2011
World's Financial Madness vs My Mother
My mother was right! It pains me to say this but on one economic topic my mother was right. 'Never mess about with people's jobs' she said. 'It is very easy to sack people and close organizations but almost impossible to start them up again' and she was right. Why don't politicians know this? They have enough evidence. Making people unemployed is stupid.
If you shut down a ballet company or an orchestra you lose all the trained personel and it would cost a half the gold in Fort Knox to start one up again from scratch even if you could. Ballet dancers and musicians take decades to train. This is my filed of interest but it is the same for virtually anything else.
How does HBSC improve the economy by sacking 30,0000 employees. It is good for the bank as it lowers the wages bill, allows them to sell off premises and make their profits look better for shareholders but just where do they think that 30,000 unwanted clerical workers are going to go?
The governments too are great at shedding employees. In NZ 1,500 armed forces personel are being 'let go' from the payroll where they could do something useful like rebuild Christchurch onto the unemployment benefit. How does that benefit anyone?
The only people who benefit from this madness are the bankers who do nothing to help the real economy. Their money is made from shuffling numbers in a giant ponze scheme. They shut down manufacturing companies, sack the employees and sell the assets in the name of free trade.
The Romans had the answer. They had this problem too but they made jobs. All Roman soldiers had to build roads viaducts and walls when not fighting. Hadrian's Wall comes to mind and for the rest there was 'bread and circuces'. Entertain the masses and feed the rest. In NZ at the moment we have the Rugby World Cup which is costing the NZ taxpayer 39 million but it does keep the unemployed youth happy for a couple of months.
Germany is doing well because through all this mayhem it has maintained its manufacturing base. UK & NZ have shed all theirs. How could the UK let Cadburys Chocolate, the most British of British organization be sold to Kraft and sent to Poland! In NZ we lost Fisher & Paykle to China!
Still this won't go on forever. Oil will run out and then it will be uneconomic to have goods transported from the other side of the world.
So once again I have to admit my mother was right.