4/06/2013

The fake awakening of the elite




We read and heard it in the media, everywhere, that the wide income gap is bad, productivity is low and how to deal with these problems. The Americans are worried so it is time we are worried too. Is the conscience pricking or is it just another gapping for another PR exercise, that the elite is concerned with the well being of the lower income group, the poor and the disadvantaged? How real is this expression of shock and awe, that something is seriously wrong and needs to be talked about but not necessarily to do anything about it?

It was not too long ago that the wide income gap was preached as a natural occurrence, that it was a sign of progress. Who, in a position to write his own pay check, in a position to take as much as he wants, would want to cry over having too much to take? This trait of human nature is definitely natural. Greed is in all of us and the only way to control this greed is for a third party to do the checks and balance. No one, not even God, can check himself and his wanton lust and greed. God can be crazy when unrestrained, so what is there to blame the mortals or immortals for their excesses and self serving actions?

The Americans started it all. We resisted in the beginning, that you cannot anyhow pay people enormous amount of money. Thrift is important and morally correct in public service. The civil servants were well paid but not obscenely well paid like what it is today. Don’t mention the politicians. The Americans started to pay themselves crazy not to the civil servants but to the private sectors. Every turkey in a position of authority would want to be paid a life time’s income in a month or a year. And we have learnt to be like the Americans. We are crazily paying the top management a life time’s income in a year or less. Would the recipient be complaining? Would the recipient say, hey, you are paying me too much for so little that I have done!

All sorts of rubbish reasoning were published in the media as god’s wisdom, to pay the employees their life time income in the shortest period possible. Actually this is a good thing if it is carried down all the way to the workers. But it cannot be done. The money is finite. If someone is taking the bulk of it, the rest will have less.

In any organisation, public or private, the revenue generated is limited and has to be spread around. The issue is the distribution. There is the return on capital to the owners or shareholders, the cost of production, the wages, at the top, middle and at the bottom. If one part takes the lion’s share, the rest will have to take less. If the CEO and his immediate kakis take a big chunk of the revenue, the dividends will have to go, the wages of the lower management and the workers will have to go. CBF is to tell the workers to take less while the top takes more. And those taking more will tell the CBFs that it is only normal because they are more deserving.

When wealth is concentrated in a few, they have a lot more to spend and that drives up the prices of everything. Housing and luxuries will be cheap to those with deep pockets but extremely expensive to those who have little or nothing. The high rentals, the high prices of housing and cars do not happen in a vacuum. They are conscious policies of those who have a lot and think that it is ok for them to price out the losers. The losers do not deserve anything better. If they cannot afford a $100k COE, that is their business. If they cannot afford to pay for taxis, just too bad. This is a meritocratic world and the meritorious deserve their comfortable lifestyle while the rest are inconsequential. They should be grateful to have a job and a roof over their heads.

Do not be misled by the conscience pricking uttering of the elite. It is just for show. They believe that they should take as much as they can while the sun shines even when they could have taken enough to last a life time or several life times in a year.

There is a subtle difference between the rich employees and the entrepreneurs or those managing their own businesses. The latter two invested their talents and resources and could lose everything, return on capital risk. As for the employees, public or private, the only thing they can ever lose is the job even if they burn down the company or organisation. The capital they are risking and bringing in big revenue is other people’s capital, OPC. And they could move on to rob another company by demanding to be paid another life time in salary in a year.

Is there a problem? If one is an elite and being paid that kind of indecent money, there is surely no problem. In fact it is the right thing to do. The system is good, the system is well. Do not destroy the system. So what is going to happen? Nothing, everything will be as per normal and the system will tick away until the sun comes down, if it ever comes down.

13 comments:

Anonymous said...

The business owners are even worse than the Elite employees. The business owners will put all expenses on the company and distribute as much money for their family members "working" in the company for as long as possible using every legal loophole. This gives the impression that the company is not making money and so they are unable to pay their employees well.

When the business fails, creditors go after the company, and they just let it fold up leaving their employees unpaid and unemployed. In the meanwhile, they already have their millions in their personal account. Then, they just start up another company either in the same business or similar business and repeat the whole process.

Business owners are no saints. They will abuse the employees, business partners, suppliers and even customers if given the opportunity.

Anonymous said...

ST Forum 06April

[Health insurance needs a boost]

Francis Cheng


"WHILE Dr Carol Tan-Goh ('Balancing profit and protection in health insurance'; March 29)
and Mr Patrick Tan ('Cut down on health insurance duplication'; Wednesday)
offered good insights on health insurance,
there are other concerns faced by policyholders and insurance companies.

First,
policyholders who take up MediShield, Dependants' Protection Scheme (DPS) and ElderShield plans with the same insurance company
do not enjoy a package discount.

Second,
it is not compulsory for everyone to take up medical insurance,
unlike car insurance, which all motorists must have.

Third,
since the Govt has pledged to increase its share of the health-care bill,
it should set aside a budget to help offset higher premiums for chronic and underlying illnesses,
as insurers refuse to insure new cases for these illnesses.

Fourth,
consider allowing people to use their CPF Retirement Account and Minimum Sum to top up any Medisave shortfall.

Fifth,
make it easier for the elderly to buy riders.

Lastly,
unless the Govt reviews the integrated MediShield plans provided by insurers,
duplications are inevitable."


http://www.straitstimes.com/premium/forum-letters/story/health-insurance-needs-boost-20130406

Anonymous said...

The worst are those that are public listed. They also pay themselves crazy and let the business go red.

Anonymous said...

Politician and businessman are similar to Hyena in the wild.

virgo49 said...


Gold mountains to dig, can dig, better dig first and fast.

Later, mountains becomes mole hills, then no chance to dig anymore.

Everywhere same same, can dig better dig first before too late.

Near retirement, know no chance anymore to dig, then take excuse to travel many many places on ah kong's expenses before too late.

Even himself can afford this, but why not on somebody's expense.

Ⓜatilah $ingapura⚠️ said...

A huge bane to the business owner/ entrepreneur -- unavoidable in most cases -- is the cost of carrying ridiculously paid employees or out sourced contractors, who think they are hot shit.

Public companies are even worse -- which is why I am perennially suspicious of publicly traded corporations -- all of them, no exceptions.

The incentives for plunder-by-senior employees (aka "management") are simply too delicious to resist. As a highly paid employee i.e. an "elite" you can essentially get away with murder by blowing up the company, leaving original equity owners and public shareholders (aka "the owners") with worthless paper, whilst management walks away with bonuses, having cashed in their shares and options LONG BEFORE the shit hits the fan.

As for the rank and file workers -- no one gives a shit about them, because there's plenty of choices and alternatives in the market.

Anonymous said...

Matilah filled with conscience today and speaks more like a human.

Anonymous said...

Once in a while he will return from the dark side.

bond said...

Confucius is rubbish cos he preached about an elite ruling system. He was just another scumbag who bullshit to gain popularity and wealth. The entire china suffered from his bullshit. The truth is when the elite rules, the ordinary will suffer.

In western europe, they are going to fine those companies that pay their staff more than the prime ministers. THis is hence a better and more superior system.

Anonymous said...

Here they are trying to pay CEOs big money to be used to justify paying the politicians more.

The president's pay is a bench mark. Now you know why he needs to be paid that kind of silly money for doing you know what.

Anonymous said...

Matilar good post so I don't have to crush your balls on May 1

Anonymous said...

Though Confucius was vain and sook recognition and glory almost in his entire life, he did display strong sense of propriety. The values that he extolled were virtuous.

The Sin System lacks Said Virtue. Our leaders are only interested in wealth and glory.

They are sickening.

Ⓜatilah $ingapura⚠️ said...

@ 302 & 559:

Just to remind you "observers" I am an old-school-meritocracy-thrift-and-productivity-justice-before-mercy-gun-owning CAPITALIST.

Which means I detest cheaters, liars and motherfuckers who dupe people -- especially ordinary hard working folks -- out of their money. Which is why I absolutely do not trust/ dislike:

1. Banks or any financial institutions

2. Sales people

3. Unrestrained consumerism

4. Fiat currency, and it's printing

5. Central bankers

6. Public corporations

7. Lawyers and tort law

8. Governments and politicians in general

9. Crony capitalism/ fascists

Notice that all the above items are necessary components in a free capitalist system -- and I distrust ALL of them.