![]() |
||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
||
|
Issue No. 144 | 12 July 2002 |
![]() |
||
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
||||||||||||||||||||||||||||||||||||||||
![]() |
The Lotto Economy
Interview: Capital in Crisis Industrial: No Sweat Bad Boss: Super Spam History: Living Treasures International: Axis of Evil Solidarity: Pride of Place Technology: The Art of Cyber-Unionism Poetry: The Masochism Tango Satire: Foxtel-Optus Merger 'Anti-Repetitive' Review: Bob Carr's Thoughtlines
The Soapbox The Locker Room Bosswatch Postcard Week in Review
![]() ![]() ![]() ![]()
|
![]() |
![]() |
Editorial The Lotto Economy
The man who cheated himself into the most powerful position on Earth can talk tough on ethics, but when he's been caught playing the loans-for-shares game himself and his deputy is up to his neck in dodgy dealings, it's a bit hard to take it all seriously. But isn't this America? The land where reward and enterprise has created a system that has bought wealth to the world and killed off the Commie beast? Isn't the inevitable rise in stock prices the inherent strength of capitalism? The big difference now is that investors are beginning to fear it's all a sham, as corporate giants crumble under the weight of fraudulent profit projections, inflated share prices and dubious auditors with stakes in the firms they are meant to be scurtinising. Retirement savings, fuelling the world economy with the massive pension fund investments, are beginning to yield negative returns. Once they lose an incentive to pump in the billions the game will really be up. What comes next won't be pretty. The remuneration of executives is not the only problem the system faces, but it is a big one. The multi-million packages have created a Lotto Economy where sums far beyond the comprehension of normal workers have become the norm. We are told we need to pay these obscene amounts to have the 'best' people running our businesses; yet the businesses continue to fall over leaving the failed managers secure with their multi-million dollar golden handshakes. Yep, it stinks. But how does one regulate greed? There are no easy answers but there are some simple first steps. Like preventing firms offering CEOs options that give them an incentive to inflate share prices with short-term tactics like slashing jobs; like forbidding firms from lending managers money to buy back into the firm; like encouraging shareholder scrutiny of these grubby arrangements; like giving regulators increased powers to jail individuals who cheat the system. While Bush at least talked tough, our own Prime Minister was taking the opposite tack this week, hosing down proposal to increase the ACCC's powers to punish market collusion. He's also refusing to debate an ALP Bill to increase the powers of the ASIC to pursue holding companies whose mismanagement lead to the collapse of a subsidiary. Meanwhile, his workplace relations minister continues to advocate for bosses, while turning his Rule of Law on any worker who cares to stand up for their rights. A decade after the Cold War ended a new set of political battle lines are being drawn; instead of the split between the State and free enterprise; there is the philosophical debate about whether the system needs regulation or unfettered freedom. A political agenda skeptical of the free market, with limits and controls on executive pay, setting community standards for corporations and prepared to treat corporate criminals the same way as bank robbers would have increasing political appeal. It's a point that Simon Crean should be pondering as he strives to redefine Modern Labour. Peter Lewis Editor
![]()
|
Search All Issues | Latest Issue | Previous Issues | Print Latest Issue |
© 1999-2002 Workers Online ![]() |
|