Oh’s Zany World

Free Money for the Big Boys?

March 18, 2009 on 3:10 pm | In Economics, Oh Yeah, Poly Tics | No Comments

Reading the news this morning, I read this:

 

The attack by lawmakers on AIG pay has provoked renewed complaints from some financial company executives that federal involvement in business decisions is making it difficult for struggling firms to return to profitability. In particular, executives say they need to offer bonuses to keep and motivate their most valuable employees and are already seeing an exodus of talent.

 

 

This comes from an article titled “AIG firestorm raises alarm for firms,” on MSNBC.     

 

I do agree that the government should not be trying to change the terms of the money after they have given the money. However I do find it quite madding that they believe that they somehow have the right to believe that they should be able to get and spend federal money as they want and that they need to pay big fat bonuses to keep their “most valuable employees.” Perhaps, I am missing something? But isn’t this federal money going to companies that are supposed to be going under? If it is going to companies that are most likely to go under, it seems to me that either these, “most valuable employees” will be out of a job soon anyway with out federal money. Or that perhaps they are not as important to the business that they are believed to be.

 

As I said, I do not believe that the Government should be changing the rules after they have given the money to these firms already. But I do think that they should restrict uses that the money can be spent on, in the future. Also they should restrict payout outs of bonuses and of pay for so many years after the monies have been given. And also spell whatever other restrictions there will be on how the monies can be spent.  Then the companies will have a have a choice of either taking the monies with restrictions or not. I can’t help but wonder just how many would put their hands in their pockets and refuse the money with the restrictions? I would think that most would take the money because they would sooner have something then have nothing.

 

But perhaps a more real question should be this:

 

If as a country we say, we are a free enterprise (read that capitalist) country. Why are we looking for the government to help the economy get going again?

 

Shouldn’t the peoples and the companies that claim that they don’t believe in government intervention be out, their making their voices heard, that they want no government interventions, they are willing to risk and even willing to live though a major depression. That they are willing to take the lack of work, the starvation, the violence and the general chaos that goes with an economy falling apart. That they, are willing to go, though it and risk that their government and economic system will come out the other side in tact. I guess that deep down they really only believe in free enterprise when they have everything going their way?

 

Or maybe closer to the truth is that most people have not given any thought to what is really happening?

 

Perhaps it is time to either take over and make the failing firms national or leave them fail and work out how to survive on the other side?

 

Until then, hope you have an enough wood and food to last until times get better.

 

Pessimistic about the future,

 

OH

 

 

Copyright 2009