Novelist. Author of APSARAS and tales from the beautiful Saigh Valley. First person to quantify spiritual values.

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Tuesday, 5 August 2014

People or profits

I have just watched a Despatches tv program about the drive by Companies to reduce their costs by cutting the cost of products, in each case at the expense of working people. Whether on zero hour contracts or the minimum wage, working people are the last link in a trading chain that should allow Firms to provide goods or services for customers at the right price. So far so good but it doesn't take into account the greed of the City. You see, if a company such as Tesco  announces a 2% profit drop, then theoretically the owners, the shareholders, shoulder a smaller return on their investment. No problem; businesses go up and down but what is this? Because year on year profits do not go up, the market marks the stock value down, thereby affecting the incomes of pension holders and owners alike This sentiment drives the Executives of top companies, holders of large amounts of stocks to promote growth at almost any cost. This means that grocery companies move into different spheres of activity such as electronics, books, music but also trim margins on their core business. Very often this means that for instance dairy farmers can no longer survive or low earning workers cannot earn enough to support a family.
It is another example of how the Capitalist society is now failing people, fuelling the division between the haves and have nots. Unless the government addresses serious problems in the well-being of the working classes I can see trouble ahead. The problem is the Government, headed by Cameron and Osborne, have no understanding of the aspirations of normal people whilst themselves benefiting from the stock market machinations.

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