{"id":15420,"date":"2018-05-21T19:30:10","date_gmt":"2018-05-21T18:30:10","guid":{"rendered":"http:\/\/leregardlibre.com\/?p=15420"},"modified":"2025-12-23T10:58:47","modified_gmt":"2025-12-23T09:58:47","slug":"oxfam-and-intellectual-terrorism","status":"publish","type":"post","link":"https:\/\/leregardlibre.com\/en\/economy\/oxfam-and-intellectual-terrorism\/","title":{"rendered":"Oxfam and intellectual terrorism"},"content":{"rendered":"

Early last week, you may have read, or heard, the indignant reactions to the latest \u00abreport\u00bb from Oxfam, which is \u00aban international confederation of 20 organizations working together, with local partners and communities, in over 90 countries\u00bb. Its unusually modest slogan (\u00abTogether, we can build a fairer world without poverty\u00bb) tells the last undecided that its vocation is a noble one. Entitled \u00abCAC 40 (named after the Paris Bourse stock market index): undivided profits<\/a>\u00bbIt leaves little room for doubt. But what is the reality? Under the guise of a laudable struggle, isn't Oxfam playing politics? Focus on content and methodology.<\/p>\n\n\n\n\n\n\n\n

Report content<\/h3>\n\n\n\n

The report's opening observation is scathing: \u00abIn 2017, 82% of the wealth created in the world benefited the richest 1%, while the poorest 50 % received only crumbs. France is no exception to this trend: the richest 10% hold more than half the national wealth, while the poorest 50% share only 5% of the cake. This unequal distribution of wealth is organized first and foremost where it is created: within companies\u00bb.<\/p>\n\n\n\n

Corrective demands follow this pillorying: regulate shareholder remuneration; involve employees more closely in company profits; introduce transparency on pay differentials within companies; apply a maximum factor of 20 between the highest and median remuneration in the company; limit the highest remuneration of executives and senior managers; ensure a decent wage for all employees in the supply chain; close the pay gap between women and men.<\/p>\n\n\n\n

The idea behind the demonstration is that shareholders, who own the company, are excessively favored, to the detriment of workers, who, according to the authors, are the only creators of wealth. We learn that \u00about of 100 euros in profits, CAC 40 companies paid out an average of 67.4 euros in dividends to shareholders, leaving only 27.3 euros for reinvestment and 5.3 euros in bonuses for employees\u00bb. Faced with this figure, it's clear that the average citizen feels an injustice. Why should shareholders get so much, when it's the employees who work every day, all year round, to achieve this result?<\/p>\n\n\n\n

A methodological problem<\/h3>\n\n\n\n

Firstly, it should be remembered that this percentage remained stable between 2009 and 2016, the period studied. Secondly, we're mixing apples and pears here, in a way that's necessarily so insidious as to be grotesque. Employee salaries, company investments and other expenses are distributed upstream of profit distribution. Jean-Marc Daniel, Associate Professor at ESCP Europe and Editorial Director of the magazine Societal<\/em>, reminds<\/a> that wealth is measured by the added value created. This is then divided into two blocks: one that remunerates labor in the form of wages, and the other that remunerates capital in the form of gross operating surplus - in other words, profit.<\/p>\n\n\n\n

With this second block, the company has a choice. Either it reinvests the capital directly, or it redistributes it in the form of dividends to shareholders. The first block, wages, represents two-thirds of value added, while capital remuneration accounts for the remaining third. Unfortunately, this figure, which contains useful information, does not convey the message that this supposedly independent organization wishes to propagate. In order to allow the figures to fit in with the slogan, we have deliberately chosen a more than questionable indicator.<\/p>\n\n\n\n

Of course, we also fail to mention that, unlike a salary, which is paid regularly at the end of the month, a dividend can be non-existent and represents a risky investment. The latter must be rewarded, otherwise it might simply and stupidly not be taken. Worse than productive capital is the absence of capital. All the SMEs in the world can testify to this. Capital is the sinews of war.<\/p>\n\n\n\n

No end justifies any means<\/h3>\n\n\n\n

At the end of the day, it's undeniable that the desire to thematize a possible unequal and counterproductive distribution of wealth within companies must be taken seriously. But in the face of methodological weakness, which struggles to mask a strong ideological bias, the message becomes diluted as it loses so much of its purity. We would like to see more caution and critical thinking in the media, which repeats the conclusions of the dossier in unison.<\/p>\n\n\n\n

Political recuperation is immediate. Especially at a time of failure for the opposition to the \u00abPresident of the rich\u00bb. Caught in the act of soft populism, economist Thomas Porcher - the new hero of France insoumise and a member of the Economistes Atterr\u00e9s (they are \u00abkeen to see the economy free itself from neoliberalism\u00bb) - is symptomatic of this drift, which sees the end justifying the means. He will then spend his time trying to rant against those who doubt his expertise<\/a>. Some would venture to say that you can have a PhD in economics and still ignore the fundamentals. Or at least pretend to.<\/p>\n\n\n\n

Politicizing inequalities: a dangerous instrumentalization<\/h3>\n\n\n\n

At the same time, attention is focused on the country's very large corporations, with anti-capitalist rhetoric against the ugly world of business hammered home for the umpteenth time, quickly forgetting that France's workers and the country's economy are not only driven by the behemoths, but above all by medium-sized businesses. By deliberately lumping the whole thing together, without ever qualifying it, these ideologues are doing an incredible disservice to a country that is already economically illiterate.<\/p>\n\n\n\n

In a recent report<\/a>, Institut Sapiens reminds us that \u00abthe French are extremely curious about economic issues. Issues such as growth, unemployment, purchasing power, consumption and taxes are at the heart of their concerns. But they also show a real lack of understanding of these same issues, due to a lack of the concepts and tools needed to understand them properly. This lack of economic literacy among the French, who are generally distrustful of the world of finance and more hostile than elsewhere to the market economy, is costing our country dearly in terms of growth and employment.\u00bb<\/p>\n\n\n\n

Reasons for optimism<\/h3>\n\n\n\n

In his latest book, No, it wasn't better before<\/a><\/em>, Johan Norberg, who sees the glass as more than half full, demonstrates that the current situation is, to say the least, satisfactory, and that we're heading in the right direction. According to him, \u00abin 1800, 94% of the population was in extreme poverty (defined by the World Bank as an income equivalent to less than 2 dollars per day of purchasing power). Today, it's less than 10%, mostly concentrated in Africa, even though the number of people on the planet has increased sevenfold (7.4 billion)\u00bb.<\/p>\n\n\n\n

The leading exponents of the debate on inequality are missing the point, forgetting that the ultimate aim of redistribution should not be a mad egalitarianism that holds back the first-timers, but rather the tool that feeds an effective safety net, notably to accompany economic cycles. Here, as elsewhere, the solution is more pragmatic than ideological.<\/p>\n\n\n\n

Write to the author: nicolas.jutzet@leregardlibre.com<\/a><\/em><\/p>\n\n\n\n

Photo credit: Pixabay<\/p>\n\n\n\n

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En d\u00e9but de semaine derni\u00e8re, vous avez sans doute lu, ou entendu, les r\u00e9actions indign\u00e9es au dernier \u00abrapport\u00bb d’Oxfam, qui…<\/p>","protected":false},"author":314,"featured_media":15421,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27371],"tags":[9472,49909,615812,644343522,644358493],"class_list":["post-15420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economie","tag-analyses","tag-cac40","tag-capitalisme","tag-desinformation","tag-entreprises"],"acf":[],"yoast_head":"\nOxfam et le terrorisme intellectuel<\/title>\n<meta name=\"description\" content=\"Sous couvert d'une lutte louable, la conf\u00e9d\u00e9ration d'ONG Oxfam ne ferait-elle pas de la politique? 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