A bit rich

UK: Bankers, investors and other highly paid professionals have been called the “wealth creators” in  Britain. But are they really? According to the report "A Bit Rich: Calculating the real value to society of different professions", such workers actually destroy value. Other occupations are worth much more to society.

The New Economics Foundation (Nef)  calculated the worth of different jobs based on their economic returns, effect on the environment and the increased “well-being” for society. For every £1 they earn, waste-removal workers create £12, hospital cleaners create £10, and childcare workers create £7 in value. So, for example, when children are cared for, the parents are able to go to work, which increases the society’s productivity and income.

The Nef also calls it a “myth” that transactions and trading in the City are essential for Britian's financial health. In a good year, financial activities contribute about three per cent to the economy, states the report. “But many years’ worth of tax contributions have now been wiped out directly through the taxpayer’s bail-out of the sector,” it adds.

For every £1 they earn, hospital clealers create £10 in value for society. Advertisers destroy £11.

According to the report, tax accountants are responsible for destroying the most wealth, £47 for every £1 they earn, mainly because tax professionals generally advise their clients on ways to avoid paying taxes. This reduces revenue for the country. Bankers destroy £7 of value, and advertisers £11 of value per £1 of their earnings. Advertisers destroy wealth because they encourage overconsumption, which has high costs for the environment, the Nef says.