Sometimes I think that I'll write a book with the title, "Simple Simon Economics". You know the rhyme: Simple Simon met a Pieman going to the fair; said Simple Simon to the Pieman, "Let me taste your wares". Said the Pieman to Simple Simon, "Show me first your penny." Said Simple Simon to the Pieman, "Sir, I have not any".
Let me rewrite it: "Simple Simon met a Piechartman detailing economic affairs; said Simple Simon to the Piechartman, "Let me try your theories". Said the Piechartman to Simple Simon, "Show me first your savvy". Said Simple Simon to the Piechartman, "Sir, I have not any."
Indeed, I'm not much up with economics; pie charts, and theories I don't savvy. So I'm a "Simple Simon" when it comes to such matters. However, I observe and try to understand how the world works, and this is some of what I notice.
- Tax cuts put more money back into consumers' pockets, money sloshes around the economy so that it picks up: this is a good thing.
- Wage rises for lower paid workers puts more money back into consumers' pockets, money sloshes around the economy so that the economy picks up: this is a bad thing.
- Directors and shareholders believe that to attract the top talent required to run a company, high salaries must be paid, and must be competitive with the international market, this is a good thing.
- Workers (often supported by unions) believe that their skills and effort deserve more reward and higher wages: this is a bad thing.
-If a company is successful and makes good profits, and returns good dividends to shareholders, this is generally thought to be due to the good management and work of the CEO and directors, who deserve a reward.
- If a company is successful and makes good profits, and returns good dividends to shareholders, it does not seem to occur to "the powers that be" that loyal staff and hardworking employees should share in the rewards as well as the directors and the CEO, and, of course, the shareholders.
As a society thinks, so will it be (to paraphrase loosely Proverbs 23:7, KJV). What we need is not new economic policies, whether of the right or the left. We need a new way of thinking. It's not about "the politics of envy" or "the economics of greed". It's about recognizing that the success of any economy rests on the input and the hard work of many people in all strata of society. It's about recapturing the sense of society and a social compact.
