The Elephant in the Room …..It is very nearly, always, There.

The exact origin of the phrase is unknown, but the first recorded use of the phrase “the elephant in the room” was in a 1814 fable by Ivan Krylov(a Russian writer of fables). In the fable, a man goes to a museum and sees an elephant, but he doesn’t notice it because he is too busy looking at all the other small objects on display. https://nosweatshakespeare.com/quotes/famous/elephant-in-the-room/

There can be very few conversations, meetings- commercial, international, diplomatic, personal, virtual or in person that have not had Ellie, in various sizes, present. It is a most unfortunate metaphor. Elephants are highly intelligent and social creatures. To use them as an illustration of difficulties and problems that were rather not discussed is somewhat disingenuous to the very regal Elephantidae family.

It is the problem that no one or group, or organisation wants to discuss. Invariably, it is the one thing that needs to be discussed. If not, at sometime , it will stand up and tell everyone ‘I am here’. When that happens the problem will be much magnified because its consequences and potential resolutions have never properly been talked about.

History is quite literally littered with examples.

Europe has been ignoring Immigration for some years . Rather, it has lightly discussed the problem (as seen by its populations) and developed fragmented policies of varying types thinking it would go away somehow, but failed to talk about it seriously and openly . Politically the Elephant has stood up, raised its trunk and trumpeted I’m here , what are you going to about it ?’

Scientists have been aware of issues concerning Climate Change for a not inconsiderable number of years. Surprisingly so were some politicians.

It took the best of the next twenty years for it talked about with any seriousness. The Elephant that I think still exists is that nobody has said if the targets that have been set were met , would it definitively make sufficient difference. Then if they were met and it made little difference, what would be the next step. Personally, I think it is not widely discussed because it would be feared that society would probably say ‘why bother?’

He goes onto say ‘ the clever ones recognise the difference ‘.

However, there are times when thinking ‘furniture’, as openly accepting that it is actually an elephant can have unintended or even unwanted consequences . Serious consideration of those very consequences need to be assessed before telling others in the ‘room’ that there is a bloody great elephant there.

There a still a lot of buts . Sometimes the Elephant may be standing behind a long curtain and you are not sure if it is a trunk hanging out the bottom of the curtain or a giant Cobra. Or just a lamp stand.

Whistleblowing, in an odd sort of way is often about elephants in the room. Although, a number of individuals can be aware of various issues but cannot/will not reveal them because they are under pressure not to and will face their own consequences unrelated to the issue. It is peer pressure in various poses that stop the elephant being discussed.

In the UK there is a legal framework to protect Whistle blowers within the work place but it is by no means fool proof.

On a more micro level i.e. personal, small business/industries, this actually a very difficult subject to examine as by talking about specifics, you actually have to talk about the Elephant . Doing that exposes problems that people do not want to be made public. This post came about through an associate within our industry said why don’t you post about a certain issue that has always been an Elephant. I responded by suggesting that if I did, someone might put a contract out on me. So I wont.

So here is a really big Elephant….

BIG ELEPHANT

Image Courtesy of Me

So here is a conversation between Advanced Economies and China.

Mr China replies:

The more I think about it the more I see loads of bloody Elephants. It is a bit of shame really as Physical Elephants are wonderful creatures . The metaphoric type can rarely be wonderful, it must be being cooped up in all those rooms that make them such troublesome creatures.

There, I have written about the Elephant room . that will please someone , and if they read this they will know who they are .

So Where have all the Big Bucks Gone ?

Every year the Sunday Times Newspaper issues it’s Rich List . Every year (nearly) I post about it .

It is not that fabulously rich people fascinate me. They don’t . Or rather the famous ones don’t but the ones I have never heard of, are rather more interesting. Check out https://www.forbes.com/billionaires/ This gives some background and detail of people you may never have heard of. I am also interested in where is this money and what happens with it.

According to the report , there has been a decline in the number of UK Billionaires. As the measure of wealth invariably involves stock values , the UK market was pretty flat in 2023 thereby decreasing the wealth of the few. However, the picture is not always that clear as Forbes , who measure in dollars as opposed to sterling show no such decrease.

Apparently there has also been an exit due to the changes in the Non Dom Status ,as well as their children being mugged for their watches. An oversimplification but if you walk the streets with a twenty grand watch on your wrist you are making yourself a huge target , and saying ‘look what I have got and you will never have‘. Some would say this would never happen in Dubai. Which is probably true but not a realistic or desirable comparison.

What I do not understand is why , if you have assets of £1 Billion sterling or just a mere several hundred million do you need to up sticks and move to some distant region to save even more. What is the point of this excess wealth? Much of it will never be spent. The combined wealth of the 350 in the list exceeds £795 billion. That is a massive amount of money . To what avail?

An example, an Entrepreneur called Alfie Best (not a Billionaire , mere £947 million- here’s another odd thing they don’t say how his valuation has nearly quadrupled within the last 12 months ) ,just ordered a £500,000 Rolls Royce is moving to Monaco (for those who don’t know he owns and runs numerous caravan parks, many are not especially happy campers- most are actually the homes of the owners-as he has a reputation of being quite ruthless in his management style. ) They will be either earning a very average wage, or pensioners and do not have the same opportunity of moving elsewhere.

“Britain needs to wake up — we are losing wealth creators,” he grumbles. “Our tax system and business regulations are sterilising the few strong people who build economies. We need these people to start businesses and create jobs. Brexit was a golden opportunity to create a fast-growing pro-entrepreneur environment. That chance has been completely squandered.”

So if that were the case why were the other (lets assume some might ) 325 other multi millionaires not moving elsewhere and managing to eek out an acceptable lifestyle despite paying the same percentage tax as do millions of employees within middle management.

Now I live in London, and yes the prices of properties in Belgravia and Chelsea are eye watering.

However, these are the World’s expensive cities to live according to www.forbes.com

And according to www.moneyinc.com the most expensive cities for property were Monaco, followed by Basel (Switzerland) and Palm Beach Florida. London does not feature in the top 10.

For the most part these are wealth creators, so along the way they enable many jobs, some very well paid and some not so’ but whatever the case they create money that is in some way spent in various economies. It is the vast wealth that they accumulate that can never be spent .

If you have several billion in your bank account how does that make any difference to your first billion.

The accumulation of vast wealth is exactly that an accumulation for, as far as I can see , just for the sake of it. It brings power and plus a whole load of baggage.

Elon Musk is apparently the wealthiest man in the world . His wealth equates or exceeds (by an enormous margin) to that of the GDP of over 140 of the World’s nations . Or put another way he could feed cloth, house every body in Zambia for each year , for 10 years and still have enough for his planes, trains(don’t know if he has any but makes the comment slightly amusing?) and automobiles .

I am not condemning extreme wealth, wealth creation, or the accumulation of wealth. But I am questioning it. If you stuck your first £1billion in the bank it would earn you £50 million p.a. That is nearly £137,00 per day. Why do you need more ?

I am also aware that as the valuations use stock values the super rich can loose the super bit very quickly. Phillip Green is a great example of no longer being a Billionaire , much in part due to the value of his stock. This is also true of many Chinese Billionaires whose wealth is tied up in property and the collapse of the Chinese Property market. The Forbes list of Billionaires runs to 2600+. That number in terms of world population is not huge but the combined wealth is $14 trillion. That is greater than the combined GDPs of India, Japan, Germany & the U.K . 2600 people have more wealth than 4 of the world’s largest economies put together, leaving only the USA and China has having larger GDPs.

So that might be were the big bucks are , but where do they go ….?