Thursday, October 22, 2009
Prophetic: Maximum Wage
In a country that is based upon the rule of law how is it that President B-Rock and his ilk can come up with a plan to cut compensation for executives that work for companies that have received federal bailout monies.
I wrote about a maximum wage initiative in January, February and April. Now it has come that it will probably happen. A clear assault on success and capitalism.
B-Rock's pay czar, Kenneth Feinberg, indicates that he will propose cutting the contractual salaries and total compensation for these executives. If the tax payers are to ever be paid back for the money given to these companies, General Motors, AIG, Citigroup, Chrysler and others then you will want the most successful business leaders leading these companies. But that will never happen if any executive and for that matter any employee has fear of their compensation being regulated by a government bureaucrat.
Because of these regulations and interference all of these companies will have leaders running them that are not focused on increasing shareholder value but on doing whatever they can to stay off a government noncompliance list. No business leader or executive will want to go to work for a company where their hands are tied behind their back and asked to brush their teeth. These companies will not succeed and the taxpayers will never be paid back. All because of government interference and regulation.
While some Americans support this policy because of class warfare these are some of the same people that never say a word about the money that Brad Pitt, Madonna, LeBron James or Tom Brady and other athletes and entertainers earn from their work. The reason I listed entertainers and athletes is because they are not responsible for creating jobs and contributing to the overall health of the economy yet they make millions of dollars for their work.
If we are a country based upon the rule of law then the Obama administration is seeking to be above that law. They are seeking to void contracts that are negotiated in good faith and agreed to by both the executive and the executive compensation committee at those companies. All because of government intervention into free market and the assault on capitalism.
Based upon the reasoning of receiving government bailout money how soon will it extend to companies that will have their compensation regulated because they do contract work or business with the federal government. What is preventing the administration from extending this regulation to the hourly employee with the reasoning that you may be making more per hour than a comparable government employee? Look out it is coming to your company!
If we are going to continue as a republic then we have to rein in our government. Enough of the attacks on success. Enough of governing by polls and public opinion. Whatever happened to common sense?
These are my words! Please post yours!