To bonus or not to bonus? That seems to be the question of the hour. Giant corporations, dubbed, “too big to allow to fail,” have been given upwards of $40 billion to save themselves from collapse. The latest company is American International Group, Inc. (AIG). Now the companies are turning that money right around and are paying it to executives in the form of huge bonuses. AIG in particular paid out $165 million in incentives.
Call me crazy but this is taxpayer money, right? This is our money. This is money that can be saved by the government and, when the time is right, can be used to encourage a 12-year-old, too scared to turn to her parents for help, to get an abortion. What is the current answer to the question, “what right do these companies have to take our dollars and throw it out to execs?” Well, these executives are members of a select group of people who can help drag America’s financial system out of a hole deeper than even a miner taking more steroids than A-Rod can dig. If they aren’t getting their incentives, why should they bother to work? Why should they even hang around in stingy ol’ America? They can bring in bigger bucks elsewhere. Do you buy it? I guess I do. I mean, that’s just human nature. People don’t work out of the goodness of their hearts or for a mere bonus of $100,000 or something. Let me tell you, a $3,000 bonus would be incentive enough for me. For others, I suppose that it would be even less. And that seems to be the point; It’s all relative. So, the bonuses are just the way that it goes, I suppose. Without them, some of the brightest business minds in the country would head abroad. Does that make bonuses of this nature a necessary evil? Maybe. Just part of the cost of doing business? Part of what the bailouts need to go toward in the first place in order to help corporations to stay afloat? I guess. Our government, who allowed these kinds of shenanigans in the first place (likely because they had their contracts written by LegalZoom.com), doesn’t think so… anymore. In fact, in one of the scariest moves of this whole mess, the House of Representatives just voted to impose a 90% tax on these horrible, horrible employees who are just profiting too much. Quick question: since when do we single out individuals when we are figuring out who pays what taxes? Because we aren’t talking about huge taxes on every American making over a certain amount of money. We aren’t talking about huge taxes on every American making over a certain amount of money and working for a company that received bailout money. We are talking about huge taxes if you fit the following criteria: you make over $250,000, you work for a company that received government bailout money, your company received more than $5 billion in bailout funds. Seem awfully specific? That’s because it is. This bill was specifically designed to target 400 very specific individuals at AIG. So, in a 328-93 vote in favor of this bill, our representatives actually said that it’s okay to arbitrarily decide which dude pays what on a case-by-case basis. Gee whiz! I hope I stay off their radar. What if they think that I was frivolous in my spending because I took my family to too many hockey games this season? What kind of control are we handing over here?
When it comes right down to it, should government get to dictate how companies spend their money anyway? The more rules and regulations dictated by government, the farther away from capitalism we get. And, not to sound too Glenn Beck-y, the closer to socialism we move. Listen, I’m not saying that all of this isn’t the answer. Maybe the free market doesn’t work, after all. Maybe we have been fooling ourselves all these years. Maybe the inevitability of greed is too strong to overcome without government taking over. But, then, are politicians exempt from greed? Are they, somehow, above all of this nonsense? Somehow, I doubt it. What they are talking about, then, is replacing the current system with a brand new one that just so happens to be run by the same types… them. Does anyone else see a problem with this? No wonder politicians, even typically small-government Republicans are for these bailouts and this “sweeping reform.” It takes the control away from the money-hungry corporate folk and puts it squarely in the hands of politicians. “Just give us the power for now. We’ll give it back as soon as the crisis is over… really… we promise.” Oh, sure. That sounds safe. Not to sound like too much of a geek but, isn’t that how Senator Palpatine wound up becoming the Emperor, ruling over the entire galaxy with an iron fist and a deadly space station in the Star Wars universe? George Lucas – prophet? Maybe not. Maybe he is just a guy who understands human nature… and Wookies.
Here is another problem with increased government control over these super-big companies: We, the people (yeah, remember us), lose all control over our market. It’s like going to Home Depot and finding nothing but Forman Grills chained up outside where the outdoor grills used to be. You go inside, then, looking for a regular old outdoor grill. Nope, they only had 1 in stock and it’s been sold. But, people don’t buy enough Foreman Grills to warrant this. People want to be buying outdoor grills. Shouldn’t Home Depot keep more of the product that people want to buy in stock? Isn’t that the way to make money – carry the products that people want? Supply based on demand, right? This is the system that gives us control over the market through our purchase power and our dollars. But, if government is simply taking these dollars, through taxes, and just giving them to companies that they consider to be either needy or worthy, there is no reason that the market will follow us. The corporations will get our cash, regardless. And, so, you had better get to Home Depot early so that you can get that 1 outdoor grill as opposed to the fat-sucking, backyard barbecue fun-stripping Foreman Grill.
I have heard from some people that the millions of dollars paid out as bonuses are not really that much money in the end. That we are talking about billions and billions in bailout money. What difference does a few million dollars make? Let’s think about this “regular people” terms: Say I’ve got $100. One day, while at the mall, I spend $90 buying things that I really need. While there, I pass by some really cool looking electronic-y thing at Radio Shack (yes, I’m a guy, I know). I figure that I’m already spending $90 today anyway, what’s the last $10? I mean, I really want to have that cool-looking thing. $10 might not seem like much when compared to $100, but if I saved that $10 and the next $10 and the next $10, it would really start to add up. And, maybe, I could even use it to help pay down some of my outstanding bills that I already have. The millions that are being paid out in bonuses might not seem like much compared to the billions of dollars handed over to these companies but that money can be saved, either by the government in the first place or by the giant corporations. Any money is money, no matter how little – it adds up. And, if they wanted to, either one of those groups, the government or the corporations, can use that bailout money to pay down outstanding debt.
I know, I know. I have no idea what I’m talking about. I’m no politician. I don’t work out there in the fast-paced, high-power, high-risk Corporate America. I’m not down there on the trading floor. But, for goodness sake, something is broken and doing more of the same nonsense and playing more of the silly games where fake money passes from one computer screen to another is not going to get us anywhere.
Maybe it’s just me…
written by Hubby
For more Wordful Wednesday, visit...
Call me crazy but this is taxpayer money, right? This is our money. This is money that can be saved by the government and, when the time is right, can be used to encourage a 12-year-old, too scared to turn to her parents for help, to get an abortion. What is the current answer to the question, “what right do these companies have to take our dollars and throw it out to execs?” Well, these executives are members of a select group of people who can help drag America’s financial system out of a hole deeper than even a miner taking more steroids than A-Rod can dig. If they aren’t getting their incentives, why should they bother to work? Why should they even hang around in stingy ol’ America? They can bring in bigger bucks elsewhere. Do you buy it? I guess I do. I mean, that’s just human nature. People don’t work out of the goodness of their hearts or for a mere bonus of $100,000 or something. Let me tell you, a $3,000 bonus would be incentive enough for me. For others, I suppose that it would be even less. And that seems to be the point; It’s all relative. So, the bonuses are just the way that it goes, I suppose. Without them, some of the brightest business minds in the country would head abroad. Does that make bonuses of this nature a necessary evil? Maybe. Just part of the cost of doing business? Part of what the bailouts need to go toward in the first place in order to help corporations to stay afloat? I guess. Our government, who allowed these kinds of shenanigans in the first place (likely because they had their contracts written by LegalZoom.com), doesn’t think so… anymore. In fact, in one of the scariest moves of this whole mess, the House of Representatives just voted to impose a 90% tax on these horrible, horrible employees who are just profiting too much. Quick question: since when do we single out individuals when we are figuring out who pays what taxes? Because we aren’t talking about huge taxes on every American making over a certain amount of money. We aren’t talking about huge taxes on every American making over a certain amount of money and working for a company that received bailout money. We are talking about huge taxes if you fit the following criteria: you make over $250,000, you work for a company that received government bailout money, your company received more than $5 billion in bailout funds. Seem awfully specific? That’s because it is. This bill was specifically designed to target 400 very specific individuals at AIG. So, in a 328-93 vote in favor of this bill, our representatives actually said that it’s okay to arbitrarily decide which dude pays what on a case-by-case basis. Gee whiz! I hope I stay off their radar. What if they think that I was frivolous in my spending because I took my family to too many hockey games this season? What kind of control are we handing over here?
When it comes right down to it, should government get to dictate how companies spend their money anyway? The more rules and regulations dictated by government, the farther away from capitalism we get. And, not to sound too Glenn Beck-y, the closer to socialism we move. Listen, I’m not saying that all of this isn’t the answer. Maybe the free market doesn’t work, after all. Maybe we have been fooling ourselves all these years. Maybe the inevitability of greed is too strong to overcome without government taking over. But, then, are politicians exempt from greed? Are they, somehow, above all of this nonsense? Somehow, I doubt it. What they are talking about, then, is replacing the current system with a brand new one that just so happens to be run by the same types… them. Does anyone else see a problem with this? No wonder politicians, even typically small-government Republicans are for these bailouts and this “sweeping reform.” It takes the control away from the money-hungry corporate folk and puts it squarely in the hands of politicians. “Just give us the power for now. We’ll give it back as soon as the crisis is over… really… we promise.” Oh, sure. That sounds safe. Not to sound like too much of a geek but, isn’t that how Senator Palpatine wound up becoming the Emperor, ruling over the entire galaxy with an iron fist and a deadly space station in the Star Wars universe? George Lucas – prophet? Maybe not. Maybe he is just a guy who understands human nature… and Wookies.
Here is another problem with increased government control over these super-big companies: We, the people (yeah, remember us), lose all control over our market. It’s like going to Home Depot and finding nothing but Forman Grills chained up outside where the outdoor grills used to be. You go inside, then, looking for a regular old outdoor grill. Nope, they only had 1 in stock and it’s been sold. But, people don’t buy enough Foreman Grills to warrant this. People want to be buying outdoor grills. Shouldn’t Home Depot keep more of the product that people want to buy in stock? Isn’t that the way to make money – carry the products that people want? Supply based on demand, right? This is the system that gives us control over the market through our purchase power and our dollars. But, if government is simply taking these dollars, through taxes, and just giving them to companies that they consider to be either needy or worthy, there is no reason that the market will follow us. The corporations will get our cash, regardless. And, so, you had better get to Home Depot early so that you can get that 1 outdoor grill as opposed to the fat-sucking, backyard barbecue fun-stripping Foreman Grill.
I have heard from some people that the millions of dollars paid out as bonuses are not really that much money in the end. That we are talking about billions and billions in bailout money. What difference does a few million dollars make? Let’s think about this “regular people” terms: Say I’ve got $100. One day, while at the mall, I spend $90 buying things that I really need. While there, I pass by some really cool looking electronic-y thing at Radio Shack (yes, I’m a guy, I know). I figure that I’m already spending $90 today anyway, what’s the last $10? I mean, I really want to have that cool-looking thing. $10 might not seem like much when compared to $100, but if I saved that $10 and the next $10 and the next $10, it would really start to add up. And, maybe, I could even use it to help pay down some of my outstanding bills that I already have. The millions that are being paid out in bonuses might not seem like much compared to the billions of dollars handed over to these companies but that money can be saved, either by the government in the first place or by the giant corporations. Any money is money, no matter how little – it adds up. And, if they wanted to, either one of those groups, the government or the corporations, can use that bailout money to pay down outstanding debt.
I know, I know. I have no idea what I’m talking about. I’m no politician. I don’t work out there in the fast-paced, high-power, high-risk Corporate America. I’m not down there on the trading floor. But, for goodness sake, something is broken and doing more of the same nonsense and playing more of the silly games where fake money passes from one computer screen to another is not going to get us anywhere.
Maybe it’s just me…
written by Hubby
For more Wordful Wednesday, visit...
I think you do know what you are talking about! You make a lot of sense to me.
ReplyDeleteWhat gets me about all this is they tell us that the GOVERNMENT now owns 80% of AIG....ummmmm, WE are the government!!!!! And if and when this bailout works, we should reap the dividends right? A monthly check for each and every tax payer. We are the government by the people and FOR the people. LOL....I know we'd never see any reaping of what we've sown here, but it still irks me with the 80% government owned.
ReplyDeleteMy Wordful this week is all about the birds and bees...errrr, um....maybe birds and cats. Is it Superman in the sky? Come find out.
You are not alone in your sentiments...I couldn't agree more! Happy Wordful Wednesday!
ReplyDeleteI think they should put all those AIG Jerks on a raft and send them out to sea...
ReplyDeleteWhat I found interesting is that they are getting some of the bonuses back, but a lot of the money was given as a bonus to people outside of the US. Huh?
ReplyDelete