In a searing critique of the industry, Lord Turner described much of the City's activities as "socially useless" and questioned whether it has grown too large.
Before we get too excited, this isn't a call for a society of common ownership, production for use and free access. Lord Turner is merely calling for taxation to prevent bankers' excessive profiteering (sic) if they continue to take risks.
Lord Turner is correct, though: banks are socially useless. They don't feed people, care for people, build homes or anything else of use.
3 comments:
"Lord Turner is correct, though: banks are socially useless. They don't feed people, care for people, build homes or anything else of use."
Except to give us all a place to gather out of the rain for an hour at lunch time!
I'm not a Guardian-reader myself but someone else noticed this letter in today's (28 August) edition:
• Why stop with banks? The whole financial sector is arguably socially useless, along with insurance, sales, marketing, advertising, security. None of it actually creates genuine value. Indeed some estimates suggest that half of all jobs are structurally socially useless, essential only to the useless priorities of profit system. We could still make all the things we normally consume – and then enjoy a four-day weekend.
Brian Gardner
Glasgow
"Lord Turner is correct, though: banks are socially useless. They don't feed people, care for people, build homes or anything else of use."
Actually, in a free market economy, banks are useful, for several reasons (this is in a free market):
1. They allow people to warehouse their wealth. Securing ones assets is valuable to some people.
2. Loans, among other useful things, allow profitable (read: useful) projects to be financed by people who don't have the savings. For example, instead of having to save fish to consume while I am making my net to catch more fish, I can borrow some from a friend, so that I can instantly start on my feeding project.
3. It is a non-sequitor to say that since X doesn't directly do something socially useful, it isn't socially useful.
"insurance"
Insurance is not useless. It is useful for people who want to safeguard themselves from a bad mishap, instead of worrying about it.
"sales, marketing, advertising,"
Useful for people to receive knowledge about goods and services. Self-contradictiory that you tout democracy, that uses this.
"security"
Useful as a safeguard against natural and man-made dangers.
"Indeed some estimates suggest that half of all jobs are structurally socially useless, essential only to the useless priorities of profit system."
Government jobs are socially useless. But in the free market, if someone's job isn't socially useful, that job disintegrates.
"We could still make all the things we normally consume – and then enjoy a four-day weekend. "
Only possible with capitalism, if you value leisure highly. Note that it is impractical to be the only creator of what you consume. If the benefits outweigh the costs, start this action today.
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