Excesses of greed

The present economic crisis is partly caused by greedy actions of people in financial businesses. Lately outrageous bonuses and pay raises have been exposed. Wanja Lundby-Wedin, head of Swedish trade union LO, is trying to save face after approving a golden pension deal for former AMF boss Elmehagen. In the US bonuses to AIG bosses takes center stage.

What to do about greed in the markets? To begin with I think a society works better with small differences in wealth. Everybody should be able to stand on their own feet, taking their lives into their own hands. That's why I like President Obama's tax plan of cutting taxes for 95 percent of the people while raising taxes for the rich. A lesser tax burdon for working families would have lessened the loan needs that fuelled the subprime bubble that started the crisis.

My favorite blogger, Norman Geras, argues that criticizing greed on moral grounds is not enough. The government should protect us against these robbers and criminals. Personally I would like to see a 90 percent tax on bonuses and unreasonably high wages, by which I consider levels higher than 10 times the average worker's. The US House of Representatives recently took drastic action against bonuses in AIG and other companies receiving federal aid, approving a 90 percent bonus tax. That's the way to do it!