The Guardian

The Guardian June 16, 2004


Culture and Life

by Rob Gowland

Talking of greed

There is no Nobel Prize for greed, so Forbes Magazine, 
the mag rich people read, fills the gap with its annual list of 
the world's richest people. For the last nine years the man at 
the top of the list has been Bill Gates, who as founder of 
Microsoft parlayed mostly other people's innovations into market 
domination for his company and a massive fortune (US$46 billion 
or $63 billion in our money) for himself.

If there were a Nobel Prize for greed it would surely go to 
Gates. While around a quarter of the US population live in 
trailer parks and run down tenements (those that have a home at 
all), Gates makes do with a garish mansion costing a mere US$60 
million.

His little shack has a thirty-car garage. Ostentatious? Self-
indulgent? Gross? You bet!

However, as we have noted before, the US economy is in big 
trouble. The value of the US dollar has fallen substantially 
against its European rival, the Euro, and Bill Gates' fortune has 
accordingly lost ground against at least one rival 
"entrepreneur".

The fortune of Ingvar Kamprad, the Swedish founder of "assemble 
it yourself" furniture manufacturer IKEA, is now assessed as 
US$53 billion (over $72 billion Australian).

Kamprad set up IKEA in 1943, when the rest of the world was 
enmeshed in WW2. Sweden, like Franco Spain, was nominally neutral 
but strongly supported the Axis.

Trading with Germany but invaded by no one, a financial conduit 
for both sides, Swedish capitalism did quite well out of the War. 
After the War, Kamprad moved to another neutral country with very 
accommodating tax laws, Switzerland.

The May 30th 2004 Sunday Telegraph, reporting the Fortune 
rich list, gushed over Kamprad's "avuncular charm" and his 
penchant for using public transport and shopping around for a 
cheap haircut.

That someone with a personal fortune of $72 billion baulks at 
paying more than $13.50 for a haircut smacks not so much of the 
common touch as of miserliness, but we'll let that pass.

As anyone who has ever bought IKEA furniture will tell you, 
Kamprad's shops are not famous for their low prices!

Another whose shops are clearly not as low-priced as they could 
be is Karl Albrecht. With his brother Theo, Karl founded the Aldi 
supermarket chain.

Aldi's gimmick was, supposedly, cheap, no-frills shopping. We had 
one in Wyong for a while, and certainly the shop's decor was 
pretty basic.

I did not find their prices all that low, however. Certainly they 
were not so low as to prevent Albrecht accumulating a fortune of 
a cool US$23 billion ($31.4 billion) from "cheap, no frills" 
shopping.

Also in Fortune's top ten was the family of the late Sam 
Walton, boss of retail giant Wal-Mart. Wal-Mart has been much in 
the news lately, mainly over its anti-worker employment 
practices.

A notorious payer of minimum wages (as little as US$8 an hour), 
Wal-Mart has also been sued for "time shaving" — doctoring 
employees' time records so they appear to have worked less hours 
than they did and are consequently paid less than they should be.

This sharp practice is now rife in US chain stores where managers 
are given a payroll budget, but the budget allows workers 
insufficient time to complete the work. When the work goes over 
the time allotted, the payment for the extra time often comes out 
of the manager's salary.

It's a big incentive for managers to force workers to work harder 
and faster, or to "shave" the computer records of hours worked 
and pay the workers less according to the amended records.

Beth Terrell, a US lawyer representing workers suing Wal-Mart for 
doctoring time records, points out: "These employees can scarcely 
afford to have time deleted. They're barely paying their bills 
already."

Which is why the Walton family can enjoy life among the ten 
richest billionaires in the world.

They may not win the Nobel Prize for greed but they are certainly 
contenders.

* * *
World of magic
The new Harry Potter film opened last week amidst lots of media space given over to the witches and wizards that inhabit J K Rowling's very imaginative concept, in which the "world of magic" coexists (sometimes uneasily) with the normal, everyday, non-magic ("Muggle") world. Her early novels in the series have a lot of humour in them; the later ones (written for older children) are much darker, with real danger, pain, death even torture. One very prominent aspect of the novels that gets far too little attention from bourgeois critics, however, is the strong anti- racist theme that runs through all the books. All her villains, the "dark wizards" and their obnoxious progeny like Harry's schoolboy enemy Draco Malfoy, are racists. They pursue a racial purity in "all wizard" families, untainted by "dirty blood" brought in by intermarriage with non-magical folk. They seek to "purify" the wizarding world by actually exterminating those, like Harry's friend Hermione, who have non- magical parents. These are powerful issues to explore in children's literature and Rowling does it well. Those who think the series is just another middle-class boarding school collection — an impression the films to some extent support — should read the books.

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