Quote:
Originally Posted by Chrysalis
excessive profit is a bad thing, as profits ultimately have to come from somewhere.
you not noticed whenever the top 1% get richer then the rest suffer?
It would seem the US and the UK are sucking the world dry in pure greed cultures.
The financial sector in itself puts the savings of average people at risk, I call it for it to be disbanded and you call me nuts, what is it you want as you cant have both. If you support the financial sector then you support risk.
|
Chrys, the "financial sector" is a very wide term. It includes the bank where you keep your current account. It includes Paypal and the mechanisms that allow you to collect payments from your customers, and to pay your suppliers, within the Eurozone, and to transfer and convert Euros into Sterling to allow you to pay Direct Debits from your current account.
The financial sector operated perfectly safely for many decades - that much is clear from the first 20 minutes of the documentary being discussed in the other thread just now. It was deregulation of financial services and failure to regulate new financial products that caused the problems, not the existence of the financial sector itself.
Similarly, what exactly is an excessive profit? A large profit in a properly competitive marketplace is a sign of success. It is warped, discredited, Marxist thinking in the extreme to assert that it must of necessity indicate exploitation.
Who determines the level at which a profit is judged 'excessive'?
What action should be taken on excessive profit? Confiscation, or rules that simply prevent a profit being reached? How would such rules be defined?
Most pertinent of all, what's the point of regulating profit levels while doing nothing about the way in which those profits were attained? It wasn't profits that caused the 2008 crash, it was the activity undertaken in pursuit of those profits.
My contention is that you are targeting your ire in the wrong place. You are doing so because you see "disbanding" and "regulation of profit" as the only two options, when they quite simply aren't.
Regulation is most definitely the answer, but it is regulation of behaviour within the industry, not regulation of the outcomes, that is required.