Peter Hain says two thirds of City bonuses should be redirected to charity, or employers who dish them out should face tax penalties. David Cameron is trying to find a formula to suggest he disapproves of City greed while signalling that the City need fear no tax-grab from him. Those who find the disparity between bankers’ pay and everyone else’s morally repugnant, or at least uncomfortable, often also cast doubt on the ‘trickledown’ theory — that the wider economy benefits efficiently from the lavish spending of the lucky few. Such sceptics should consider the parable of the Chelsea nanny.
A City friend who used to negotiate remuneration deals for bonus-hungry equity salesmen gave me a vivid account of an even more bruising recent negotiation: with the Slovakian girl who looks after his children. He lives in SW10, a district which is not only popular with investment bankers but also feels the warm breeze of rouble wealth from the nearby football club.
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