A View From Middle England - Conservative with a slight libertarian touch - For Christian charity and traditional belief - Free Enterprise NOT Covert Corporatism

Tuesday, January 24, 2012

Vince Cable sets a cat amongst some Tory pigeons

Vince Cable spells out his proposals
As I put on this blog, I'm all in favour of free enterprise but against covert corporatism. Free enterprise is best served with less regulation, simple consumer and business legislation and an environment where start-up companies can succeed. In my opinion, corporatism is just what we see in the City of London. Spivs operating complicated and devious money making "vehicles" all to suck up to grateful bosses, most of whom are clueless as to where the money trail starts and ends.

So it comes as no surprise to hear that several Conservative MPs are upset by Business Secretary Vince Cable's proposals for tackling corporate greed and corruption. Personally, I don't see it as a proper position for any Conservative to take, giving tacit support to those who would use and abuse a company for personal gain. But Peter Bone, chirpy chap that he is, called the proposals "Liberal, left-wing claptrap". I hardly think giving shareholders a voice in their company, in a binding way over pay of executives, is that. And Philip Davies referred to them as "drivel". He said Vince Cable should "get off their backs and let them create some wealth". Are you for real, Mr.Davies? Some of these directors have not been creating wealth except for themselves. The absurdity of such cretinous remarks is that it rewards failure as much as success. That has been the downfall of British business. Not something you hear much of in Germany. We seem to be saddled with Fred Goodwins, not much better that legalised crooks.

The Institute of Directors, hardly a haven for militant socialists and lily-livered liberals, is supportive. Dr Roger Barker, of the IoD, comments, "A binding shareholder vote on executive remuneration policy will remind institutional investors of their key governance responsibilities. The government is also right to consider ways in which boards of directors can become more diverse - companies must incorporate views beyond those of current and former executives in the setting of CEO pay." Well said.

What we need is a root and branch cleaning up of the British corporate scene. Nobody is suggesting that those in charge should not be rewarded well. It's just that shareholders should be given more say over what goes on in their name. What's wrong with that? Hardly left-wing claptrap. I supposed Bone and Davies think all is neat and dandy with these corporate types. Nothing to change, just carry on chaps. Well, that's not my type of conservative thinking.

Left to their own devices, the corporate world has massacred the pension funds, done deals with countries like China over jobs, and generally kept their own nests well feathered whilst asking for bailouts when they got things wrong. Free enterprise lives with businesses starting up and closing down. The taxpayer does not generally intervene. Banks and the moneychangers see themselves as different clay. That's why we are stuffed as a country paying down the national debt (well sort of!) whilst they carry on regardless.

Not my type of conservatism, Mr.Bone and Mr.Davies!


Nor mine. Here in the United States we are treated to one Mitt Romney and his "creative destruction." One company he helped get off the ground was Staples. They sell business items like stationery, computers and the like. Before Staples this was done by small to medium size businesses -- think Mom and Pop stores. The same kind of thing was sold, just in large chain stores. How is that creative?

A god example of what some of us want over here is the late Sidney Harman, cofounder of Harman-Kardon electronics. He helped get started the entire electronic home entertainment industry. This is creative -- and benefits us all. He was also reportedly good to his company's workers. He tried to make their lives better, both at work and away from it.

Whoops! I pressed enter too quickly. The second paragraph should start off "A good" not "A god." I did take typing in high school, but I still get things wrong.

Staples is in the UK. Went there yesterday. They say they are in 26 countries, so Mitt's foreign policy did some good!

I've shopped at Staples too. Recently I bought some Staples DVDs. They weren't very good.

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