It’s not often I’d post on something relating to money or the economy. If there’s not an environmental spin that can be put on something social or economic then I have previously tried to avoid writing on it as it often ends up getting political…
But the economy and society, as well as the environment, are vitally important parts in driving sustainability within a society and often don’t get quite the coverage. And so, with the UK economy limping along, an increasing number of the British public falling into poverty and destitution, and a government in disarray, Rishi Sunak and the Conservative government have taken action and helped put money back into some peoples pockets.
Helping Those Most Marginalised
With so many people struggling with high mortgage, fuel and energy prices, hundreds of families forced out of their homes due to the recent flooding caused by Storm Babet (that challenging east-to-west moving rainfall!) and new crises developing on what feels like an almost daily basis, government action is needed now more than ever. Thankfully, a new policy announced on Tuesday is set to come in and will help put more money in the pockets of those who have been struggling so much for the last 10 years: Bankers.
From the 31st October, the cap on bankers bonuses is set to be scrapped, there will be no limit to what bankers can be given in bonuses. Brought in following the financial crash, the cap was designed to stop excessive risk-taking that could potentially lead to a repeat of what happened in 2008 from ever happening again.
Helping Those That Need No Help
Of all the action the government could have taken to ease the troubles that millions of people currently find them in, the removal of the bonus cap is not it. Encouraging bankers to strive for bigger bonuses by taking more risks is exactly what got countries around the world into the mess back in 2008 – some banks went completely bust and even countries like Portugal and Greece were on the very edge of collapse if it wasn’t for multi-billion euro bailouts from the EU.
Excessive bonuses encouraging the risk-taking wasn’t the only reason for that financial crash but it certainly contributed. It’s almost like those in positions of power to remove regulations and caps like this brought in to protect the economy have learnt nothing from history. It in no way makes the UK more secure economically, nor benefits the poorest in society; it is specifically to make the rich richer. Government’s should be there to protect the society who voted them to be representatives, but moves like this do nothing to help those that really need help and only further create a more divided and unsustainable society.