On Wall Street, they have sayings. One of them is that they “eat what they kill.”
They mean this in a good way — that they earn their money by making the right bets or by landing the big clients. That money is theirs: They went and got it.
Of course, one could see it in another way: All the businesses, Private Equity, for example, has destroyed, buy buying them, paying themselves, loading the businesses up with the debt, and then letting them go under.
They earned that money by killing. ToysRUs for example, which was making a profit until they loaded it up with debt to pay for their takeover and the bonuses they gave themselves.
Or, say, causing the 2008 financial crisis, which had a bill that has to be at least 100 trillion and involved millions of people losing their jobs, homes, livelihoods, and in many cases, lives.
Finance, that is to say, demonstrably does more damage to everyone else than it does good, but it pays very very well, especially now that they own every government, so central banks are willing to print trillions of dollars to socialize their losses, while letting them keep the money they stole.
They don’t even actually win bets: If, in 2008, they had taken their losses, they would have all gone out of business.
It’s just a scam; a matter of brute force. They can print money and borrow money at rates ordinary people will never see and government makes sure they never take real losses and that markets go up no matter what is happening to the economy.
Then, there are the studies that show that the more money someone has, the worse their behaviour — the more sociopathic and less generous. Poorer people give more to charity as a percentage of income or wealth than rich people, which makes sense, as most rich people are rich because they care about money more than anything else.
The simple fact is that people like nurses, teachers, janitors, garbage pick up, farm workers, and factory floor workers are who create most value. On the intellectual and creative side, the designers, engineers, scientists, and other creators are the ones who create value, not the suits. In fact, suits often reduce value: It isn’t engineers and designers who wanted planned obsolesence (19th century engineers fought it bitterly) or to remove the right to repair.
Most financiers don’t even finance creation any more; they finance destruction. Most managers are, at best, a wash, any random person would do about as well and maybe better (management literature shows this clearly, it isn’t in dispute). As for CEOs, higher compensation correlates to worse performance, and during the 40s through the 70s, before the massive rise in CEO compensation, had far more growth than our era. CEOs eat what they kill, is all. They control who gets paid what, so they pay themselves the most. It has nothing to do with merit, except if merit means “you deserve whatever you get.”
“You deserve whatever you get.”
That’s really what we mean by merit, today, isn’t it?
Not, “you contributed to society,” or even, often enough, “you contributed to your organization,” but “whatever you have the power to seize, at whatever cost to anyone else, is what you deserve.”
It’s not even about “whatever you can get legally.” Wall Street’s entire 2000s run was based on extensive fraud, they then, with the help of Obama, stole millions of houses using fradulently signed statements. Wall Street currently makes huge amounts of money by front-running investors, simply paying to get faster access and information.
So much for deserve, as we use it.
My personal take is that there are awards that should definitely be merit based. Medals, titles, and so on. A lot of positions should only go to those who have shown they “deserve” them, though our ideas of what that means are really warped when the entire media weeps about how Hillary Clinton was “the most qualified candidate in history,” when she had displayed both terrible judgment (Iraq, Libya, pushing Trump) and incompetence (losing two campaigns as front runner, bungling Hilary-care.)
But I am heterodox. I don’t like incentives. I don’t think people should get more for doing more, because I think incentives usually warp behaviour in horrible ways.
Instead, in a surplus society, we should just ensure everyone has good quality of what they need: housing, healthcare, food. Take the fear and greed away, and send them to work without the whip of hunger. In such a world, oddly, by not doing what we do now, you’d see some of what orthodox economics says should happen, happen. For example, picking up garbage would be highly paid, because it’s not fun (though it is useful).
Let money buy anything that doesn’t matter: A fancy vacation, a TV so high-definition it looks like reality, a set of five-million thread count sheets so smooth you barely feel them, or an animatronic bear that loves you, really.
Deserve, in a surplus society, is really about FEAR. People who spend their entire lives operating from fear do not create good societies.
No one needs or deserves to be a billionaire (and if anyone ever did, it’s someone like Jonas Salk, not Bill Gates or Jeff Bezos.) Having such people costs far more than money, as Bill Gates has proven by restricting vaccines.
Forget deserve. Give everyone a good life, and see what world people who aren’t scared create.
We’ve tried everything else. Maybe it’s time to try and run a society not based on fear.
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