Blog archive from the golden age of London libertarianism
the gap between the highest and lowest paid workers is higher in the private sector, with the top 5% of earners paid 5.7 times more than the bottom 5%, compared with 4.5 times in the public sector.
Not such a big difference.Worth remembering when you next hear shrill talk about pay multiples.
From the BBC, who also mention that the public sector earns 8.2% more per hour, basic, than private sectr workers – excluding pensions.
Remember the “private sector” includes the fiancial services sector (the banks and so on) which is basically a ward of the state – depedent on Bank of England subsidies (i.e. monetary expansion that goes to them – on the understanding they lend it back to the government to fund its spending).
Of course there is a lot of pressure for the Bank of England to buy corporate bonds (not “just” help the buying of government debt).
Should this happen (on a large scale) the “private sector” in this country would effectively no longer exist – as the major private companies (not “just” the banks and other such) would become dependent on Bank of England (i.e. government) finance.
Already the government’s “loan guarentee schemes” (and other such) are a knife at the throat of the very existance of a true “private sector”. If the Bank of England starts (on a large scale) buying company debt – then it is all over, freedom is dead. We will have moved to what Ludwig Von Mises called “the German system of socialism” – i.e. the National Socialism of formal private ownership, but de facto state dependence and control.
As for inequality – some is natural (and not a bad thing). However, extreme inequality is the normal result of a policy of credit-money expansion (and this policy is a bad thing).
It is not a new discovery that a policy of credit-money expansion tends to enrich the wealthy at the expense of the poor (as opposed to natural inequality where the wealth of some is NOT at the expense of others). Richard Cantillion (John Law’s partner in “legal” crime) was writing about this back in the 1700s.
LikeLike
Libertarian Home 
Leave a reply to Paul Marks Cancel reply