Years ago, Bank of England Governor Mark Carney gathered senior insurance company executives and scolded them terribly for their lack of attention to the risks that climate change was quickly posing to their businesses. They should bear the consequences for their assets, he suggested. Carney, currently the United Nations special envoy for climate change and finance, is a strange character, but the world of finance and economics is full of similar characters.
For example, a few years ago another economist who was also a senior executive at the Bank of England, Charles Goodhart, proposed a radical change in the regulatory framework for banking companies. No fines for their irregular behavior. Banks don't do anything, people do. Managers must therefore be held directly accountable. “If the CEO of a bank knew that his own family's wealth would remain at risk throughout his later life if an employee's behavior failed during his tenure, he would do more to improve the bank's culture than anything else.” Sermons and Required Oaths,” he said.
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There are also many award-winning economists who believe that disproportionate inheritances should be subject to high taxes. It's not that parents can't leave two homes or limited savings to their children. The point is that because of this desire, inheritances that have reached excessive amounts will no longer be heavily taxed. They agree that there is nothing to justify new generations not starting at a more similar level.
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These economists generally agree that tax systems are essentially based on the idea that the rich accept taxes in return for guaranteeing the right to own property.
It seems like a reasonable agreement, but the agreement could be at risk if gross inequality occurs.
It is also a lie to claim that senior executives deserve extraordinary incentives because if they are not paid these amounts they will go to work in Abu Dhabi. A former director of an English bank put it very well: “Our CEO doesn't go anywhere because he's not a footballer and he really likes going to the club to have a drink with his friends, walking the dog through the tree-lined streets He wanders the damp streets of his neighborhood and spends weekends at his friends' country house.
According to the Economic Policy Institute, it is now not uncommon for a CEO of a large corporation or bank to earn between $30 million and $40 million per year, which has nothing to do with his performance and everything to do with his customer relationships. Advisor. The result is a brutal increase in inequality. This is even more true when absurd things happen like Tesla's decision to pay Elon Musk $56 billion. A small shareholder (nine shares) did not give in and sued Tesla “for excessive and unjustified enrichment” of its CEO.
It turns out that this week a judge from Delaware (which is not just any place, but acts as a kind of internal tax haven in the United States with more than 200,000 resident companies and has highly specialized judges) ruled that the retail investor has a great right and that this $56 billion stimulus is nonsense.
The little protesting shareholder is called Rich Tornetta and, like many little heroes, he is stubborn. Mr. Tornetta also has a strange story, because years ago he played drums in a heavy metal group, or rather a trash metal group, he doesn't go any harder. He may not have been very successful as there is no record of him recording more than one album in 2008. If you definitely want to see him in action, just head over to The Pit, “Your Home for Heavy Metal News.” Opinions and culture.” Mr. Tornetta could start a new show called “The Man Who Took $56 Billion from Musk.”
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