Words and Links

I was going to go somewhere a little more fun today, but a discussion at home changed the topic to this one.

My wife and I were watching the news when the story came on (again) about how outraged congress and the President are about the huge bonuses given out to some of AIG’s top employees and how they intend to correct this gross miscarriage of compensation.  My better half says something like “Good for them, I hope they can get it all back.”  I was actually shocked.  I didn’t think that people could really think like this just because someone makes more money than themselves.

The rationale here was that since the government had to bail out the company with a huge pile of cash, certain employees didn’t deserve their full compensation.  Also, we  now have the right and obligation to try to get this money returned retroactively since we the people now own an 80% stake in the company.

This is just nonsense.

First of all, government fiscal policy shouldn’t be based on jealousy and getting even.  Yes, these people made almost obscene amounts of money but wouldn’t we all like to one day?  I don’t want the government telling me that I can only make X dollars because anything more than that wouldn’t be right.

Second.  These bonuses were more like salary than anything else.  They were contracted for at the beginning of the employment period.  They were not based on performance, but based on being competitive and keeping their employees.

Third.  If Congress is so concerned about the 165 million dollars,  how about they look in the mirror first.  I could sneeze and find 165 mil of waste in the budget.

Lastly.  Rule of law.  These employees are legally entitled to these bonuses.  If it ever went to the courts they would have to be paid.

If Congress wants to act hastily and not weigh all of the implications of an issue they should take the fall.  Not anyone else.