Forced Distribution: Labour Proposes Workers to Get 10% of Shares

-edited

Labour has a very anti-business platform in which companies would be required to give 10% of the company to workers.

In a very radical plan, Labour proposes companies exceeding a headcount of 250 would be required to give shares to workers.

The Financial Times reports Row Erupts Over Labour’s 10% Shares Plan for UK Workers.

That headline is from last year, and unfortunately it's not all.

Labour's Big Plans

Commenting on the 2019 Labour Party Conference, Guardian reports on Labour's Plan for Industry.

  1. Rebecca Long-Bailey, the shadow business secretary, and John McDonnell, the shadow chancellor, want big companies to give employees a 10% stake in their business and a seat on their boards.
  2. They plan to renationalize rail, water, energy and Royal Mail, increase corporation tax and the minimum wage, and extend workers’ rights.
  3. Companies doing business with the government will have bosses’ pay capped and there will be a tax on financial transactions.

Of course, the Guardian, an extreme left-wing rag supports such policies.

Instead, look to Venezuela for what happens when countries renationalize industries and seize private property for the "good of everybody".

Mike "Mish" Shedlock

Comments (48)
No. 1-15
Country Bob
Country Bob

We don't need to travel all the way to Venezuela, we can look to socialist enclaves in the USA: NYC, Philli, Baltimore, Chicago, and most of California.

Like Venezuela, these formerly first world cities are run as socialist utopias. Taxes are off the charts. Regulations are off the charts. Government bureaucrats come and seize property at will -- sometimes via mandated spending (they order you to spend your money on their priorities), sometimes a very liberal interpretation of eminent domain. Sometimes the co-op board or HOA has work done and puts a lien on "your" property for the inflated bill.

These socialist utopias account for the most gun violence in the USA. They don't collect garbage and have clean water problems, just like a 3rd world socialist country. Homelessness, used needles, and human feces are all over the streets. Medieval diseases like the black plague and lepracy are rampant, as is hepatitis.

In these socialist utopias, many neighborhoods are off limits to outsiders, including the police, fire and ambulance. Outsiders will be shot without warning. Police only enter these neighborhoods in heavy armor, SWAT teams and helicopter support.

That is socialism's mark on the USA so far. The damage and suffering in Venezuela and Bolivia is much worse, but it is not safe to travel to either of those places.

London-istan has more CCTV cameras than Beijing, despite China being a totalitarian state while UK claims (at least on paper) to be a pseudo-democracy (academics will want to argue details of a constitutional monarchy, but I'm focusing on practicality not pedantic bullsh!t).

Parliament ignored the referendum to leave the EU, so in practical terms, the UK is already a totalitarian state ruled by officials, not unlike the CCCP rules China.

History will rhyme (not repeat exactly) -- the UK will go bankrupt again, just as it did in the 1970s. It will need another bailout from the IMF, but now the IMF is bankrupt too. This time the north sea oil fields have been exploited, so its not clear where the UK will get required revenue going forward even if the IMF gives them a bridge loan..... ergo the NHS will collapse along with a lot of other UK government programs. The notion that UK is capable of continuing to pay into the EU ponzi scheme is absurd, they can't even pay for domestic spending.

PS - how is the nationalization of RBS going, 10 years in? Can the UK run a bank or what!

themonosynaptic
themonosynaptic

Most of California doesn't have clean water? Har har. Did you fail out of Trump University?

themonosynaptic
themonosynaptic

Mish, if you want to use Venezuela as a slippery slope fallacy every time you hear "socialism", perhaps you could balance it up with Dickensian slums every time you hear "capitalism". Unfettered capitalism is as dangerous as Utopian socialism.

The Libertarians and the Communists have a lot in common - I've spent too much time listening to both and they both sacrifice reality to the alter of an expectation of human society and individual people that would be funny if these clowns didn't get their hands on power every so often.

themonosynaptic
themonosynaptic

If you don't like the U.K. Bob, move somewhere else. Unless of course you don't live there and so don't know what you are talking about. The NHS, like all health care systems, has its strengths and weaknesses, but the Brits wouldn't swap if for the U.S. system in a hundred years. Why do you think that is? (Hint: if somebody in your family gets cancer in the U.K., you aren't likely to lose your savings, house and credit status in the U.K., instead you get high quality healthcare. Not usually a difficult choice for most Brits.)

avidremainer
avidremainer

Oh dear Mish, if you think the Guardian is an extreme left wing rag then it just goes to show how right wing you are. This story is old hat and believe it or not is defended by saying it is an attempt to create a shareholding democracy. You may remember that the odious Thatcher set in train the current rentier paradise that we now live in she attempted to create another shareholder democracy, nothing remains of it. If you think that the Guardian is a left wing rag then you have to think that Angela Merkel is also a left wing demagogue. Worker representation on boards of all German companies has been settled policy in Germany for decades. The trade unions are also in charge of all apprenticeships in Germany.

Mish
Mish

Editor

Silly comment of the month: "Mish, if you want to use Venezuela as a slippery slope fallacy every time you hear "socialism", perhaps you could balance it up with Dickensian slums every time you hear "capitalism". Unfettered capitalism is as dangerous as Utopian socialism."

My reply: Well for starters, Venezuela is indeed the perfect example because Corbyn has sung its praises many times.

More importantly, your comment shows you are totally clueless about what capitalism even is!

Mish
Mish

Editor

"Oh dear Mish, if you think the Guardian is an extreme left wing rag then it just goes to show how right wing you are."

Vying for stupid comment of the month.

Forcing companies to give 10% of shares to workers is indeed radical. Supporting re-nationalization of companies isn't new, it's just plain stupid as history shows.

Yes, the Guardian is extreme left-wing and I bet they would even agree!

shamrock
shamrock

Walmart has 2 million employees and a market cap of $350B. $35B divided by 2 million is what, $17,500? Not a bad bonus, but whatever. Also, once the 10% has been given, what does the next person hired get? Nothing? There's nothing left to give.

TomKathQld
TomKathQld

When you privatise a public service you change the aim or incentive to profit making rather than the service. EG to make a profit, a prison NEEDS prisoners, a hospital NEEDS sick people, and of course the big example of these days, is that a military NEEDS wars !

thimk
thimk

they will do anything but reduce the size and scope of government. including trump.

So we are entering the self liquidation phase .

Casual_Observer
Casual_Observer

Giving shares to all employees isnt unheard of. Some tech companies still do this. I'm not in favor of forcing anyone to do it but good companies still so this as a matter of retention and incentives.

abend237-04
abend237-04

The cash value of every viable corporation is already being transferred to the employees continuously in the form of a paycheck. Only an idiot or political demagogue cannot see that.

frozeninthenorth
frozeninthenorth

Excellent idea, they can take the shares out of the pension funds and give them directly to the people! See how they like that idea...I can see it from here "What do you fuc$ing mean you reduce my pension fund to give me shares! I want my pension funds and my shares!

get
get

It's not necessarily a bad idea. Employees do earn sweat equity and how many times have we seen employees who've given their all to a company for decades screwed out of due compensation when a company is privatized while CEOs who can barely be called successful make off like bandits.

I am a conservative however we need to find simple, common sense solutions to the inequality hardwired into the system which grossly over-rewards CEOs and top execs regardless of performance while employee get it from behind.