17 February 2008

Gambling and share trading

I do not own company shares. I have never owned company shares. I have no wish to own company shares.

During my teenage years I was enthusiastic for all commerce to be managed by the people for the benefit of the people. I applauded when companies were taken into state ownership, and felt betrayed when state-owned industries were thrown into the ravening maws of fat-cat capitalists: British Gas ("Tell Sid") and British Telecom ("It's good to talk") ("Phone home" was from E.T.). During my twenties I realised a) that state-owned businesses were not as wonderful for their workforce as I had imagined (television images of grateful coal miners in 1947 when the National Coal Board took over the running of coal mines in the UK; of beaming nurses and relieved patients when in 1948 the National Health Service took over the running of hospitals, clinics and surgeries in the UK); b) that some companies could be ethical in their practice, for example Anita Roddick's The Body Shop; c) that there were better, less-hierarchical models for the structure of a business, such as charities, trusts (for example, The Guardian newspaper), collectives and co-operatives (such as Scott-Bader). I liked the idea of businesses being run by the workers for the benefit of the workers. I became a member of a co-operative (Earthcare, in Durham, UK), and was instrumental in forming a collective (Dragon Wholefoods Collective). I was also heavily involved with all manner of charitable / not-for-profit activities, projects and ventures (such as Durham City Centre Youth Project, outreach, chaplaincy). My CV from that time runs to pages. However, it was often my experience that I wanted to give greater commitment to these activities than many of the other people involved. In my late twenties, therefore, with many misgivings, I set up my own small business: Alpha Word Power. After a while, I began to employ people, initially part-time, and then full-time as well. It seemed that I was betraying my teenage roots. However, I never owned any company shares. While Margaret Thatcher's cellphone-toting, greed-motivated yuppies made their millions on the London stock exchange, I believed that share-ownership was immoral, that it was wrong. What I objected to fundamentally, and I also had further objections, was the idea that owning sufficient company shares gave someone the right dictate strategic policy. I have, to a small extent mellowed from this position. For example, I recognise the all-round benefit of John Lewis staff owning shares in the company for which they work [note to myself: this is not accurate - the business is technically a co-operative that is held in trust, all employees are Partners, have a substantive voice in the running of the business, and receive an annual bonus proportionate to their salary]. I believe that Google does the same. I am still on board, although rather less comfortable, with the idea of buying and owning shares in small, ecological ventures, for example building wind turbines and the like. To my way of thinking this really amounts to giving money to a cause in which one believes, with little expectation of the money being returned. The line gets crossed where the money is invested to make a profit. I can understand why it needs to happen: why businesses need capital, and people (and other businesses) with money are willing to buy shares. When I think of the money as a loan, then I can cope. However, when I think about people buying shares in order to profit from riding on the backs of the people who do the work (shop floor workers and managers) then I know that share ownership is immoral. However, it gets worse. As I understand it, much share trading is speculative about the price of the shares. When profiting from changes to the value of shares becomes the main purpose of share trading then it seems obvious to me that the plot has been lost. To me, this kind of financial speculation is little, if at all, different from gambling, and is therefore immoral.

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