WRONG.
A measure is working its way through the House, under the radar of course, that would grant the government the right to dictate all employees' compensation at firms receiving TARP money. That's right. Everyone from the CEO down to the janitor. Check it out:
http://www.washingtonexaminer.com/politics/Beyond…
The new legislation, the "Pay for Performance Act of 2009," would impose government controls on the pay of all employees -- not just top executives -- of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies.
At least we can trust that they have our best interests in mind, right? I guess it's time to dust off the old Communist Manifesto to see what comes next.
Told you this was communism!
I heard that a lot of tax-money went into building Yankees Stadium. Does this mean that we can retroactively adjust A-Rod's salary every time he strikes out?
No way in the world this could become law. Many representatives know this, but otherwise still talk the talk for their constituents.
This is messed up. I need my bank to pay back their TARP money ASAP.
I wouldn't mind having whoever added that clause to the bill sit on a blazing fire poker as well.
The compensations over the past few months have been unjust. Certain companies, however, did not need "Taxpayer" $$ and took it anyway to add confidence in government initiative. This was needed at the time to ensure other banks/firms (that truly needed it) would take it as well (since the repayment agreement to the government is a bit hairy and not attractive - they may have opted out).
In addition, the bonuses and salaries add up to a fraction of money being thrown around these days. The situation only impacts the feelings of the American people and have little impact to 'fixing any future issues' (please, lets not forget about issues like inflation, crowding out of private sector investment, permanently higher savings rates, a weaker dollar, and lower productivity). These issues should be kept in sight to prevent a 'steroid effect' after the combination of government investment and fed fund easing is felt.
I agree that controls must be placed and companies/executives should be punished but there are bigger issues at hand as of this time. Perhaps this issue could have been handled AFTER the economy is somewhat stabilized. To paint all companies AND employees with the same brush is morally wrong....this even impacts thousands of employees that are doing their best to get through the economic times (who will get less crap than before while they were getting crap to begin with). Some action is needed, perhaps a cap on the appropriate executives and in the right places, but don't pull the wool over everyone's head. This seems like it undermines recovery efforts and can cause banks to lose needed talent as well as opt out of participation in future recovery efforts put in place by the government (who need bank support no matter what times we are in).
I just want the government out of my f*cking business. These populist idiots are just making things worse, publicly vilifying the people who run this economy (not just banks, obv). Capitalism is the only system that works damnit, hasn't anyone read Atlas Shrugged???
I hate the universe.
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