YES Says Jonathan Edwards, Plaid Cymru Treasury spokesman, MP for Carmarthen East & Dinefwr IT'S high time for a cap on outrageously high pay - and bankers' bonuses are symbolic of a culture that has got to stop.
How can George Osborne seriously defend not putting a cap on excessive bankers' bonuses? Why should anybody get a massive bonus for simply doing their job? The kick in the gut is that these bonuses are paid even when the banks make massive losses.
The European Commission plan to put a cap on bankers' bonuses is common sense. This is clearly in the mainstream of European politics. It is the pro-banker policies of successive London parties - Labour and Tory - that are unjust and fail to command popular or intellectual support.
Outrageously high bankers' bonuses that were not linked to long term productive and sustainable gains were a major contributing factor to the short term thinking and excessive risk taking that caused the financial crash of 2008 which left us within hours of complete social collapse. The recession and subsequent depression is a direct result of an out-of-control banking culture.
Subsequent self-defeating austerity has made an extremely bad situation much worse. It is clear that the Welsh economy, like other producing economies of the British State, has been in a very bad way and will continue to be so even if miniscule growth returns to the UK economy as a whole. Whilst attention is focused on the recovery, it is still important to fix the problems that caused the crash - otherwise it is only bound to happen again.
Income inequality has grown exponentially since the 1970s. Income at the top has grown out of all proportion when compared with very minor increases for those at the bottom. A cap on bankers' bonuses would go a long way to begin to address this.
Big banks are continuing to fail to lend to the real economy, with lending falling by PS2.7bn in the last three months of 2012, despite accessing PS19bn under the Treasury's Funding for Lending Scheme.
Those who oppose restrictions placed on banks and bankers' pay and bonuses often like to cite Switzerland as an ideal model. It was therefore immensely encouraging to those of us who support a cap on bonuses to see that a referendum was held there and that it passed with massive popular support.
It is also a blow for those that say pay must remain 'competitive' to attract the best talent when compared with places like Switzerland. They always argue that banks will relocate - where else would or could bail out the banks, or pump hundreds billions of pounds of quantitative easing into bank coffers? Bankers end up holding society to ransom.
NO Patrick Minford, Professor of …