Today’s post is a guest contribution by reader L.S.:
Carrots Anyone, Br’er Rabbit’s selling them at a profit, and at reasonable prices. Come one, come all, let’s all shop at the Hare-Brain’s Store!
Limit TARP Execs to $500,000?
At first blush that sounds like a good idea. But let’s let the blood settle before it’s sealed and delivered to a frightened America and world. Sometimes there are unanticipated ramifications to what we first view intuitively as positive and productive.
The companies who have taken, or were coerced into accepting TARP funds are enormous, with multiple divisions throughout numerous companies within companies. Not all of these divisions are failing. Some, believe it or not, are actually money making, with outstanding managers. To place salary limitations upon the creme de la creme is tantamount to declaring (once again) that hard work, achievement, and productivity resulting in positive cash flow is secondary, and thusly devalued. It is a clear case of throwing out the baby with the bath water….
And just what will these “abused” managers do with their lives, even in this depressed, recessed economy? Sit and stay like a dutiful loyal doggy, or seek greener green-backed pastures? Some would retort, “but where, oh where would the little managers go, in a job market that is shrinking; not hiring?” If a CEO, had a top notch, proven problem solving money maker available, he or she would be grabbd up, as long as it fit into a business plan thats end result was increased profits for stockholders.
So, here’s a diamond amongst coal dust, gathering the latter, reduced in salary, for the sake of argument, from a million a year to a “paltry” half million; unhappy, disillusioned, and with little incentive to sparkle, other than ones own pride. And along comes a Non-TARP company, who makes an offer that can nary be refused. Come on board with a guaranteed million, and a signing bonus, just cause we love you, and you’re a bargain to boot, as we know you’ll make millions for the company, above your salary.
And what happens to those TARP babies after brer Rabbit jumps from briar patch to those greener pastures? They’re left with the chaff to mis-manage Billions in TARP funds. And I can not imagine that brer Bear and brer Fox can handle that responsibility as could the agile leaping hare. The TARP funds will be left in greater jeopardy than before the “wonderful” and egalitarian world of salary caps. “But they seemed so reasonable at the time”, Congress will declare, as they watch TARP recipient after recipient fail due to lack of quality leadership.
“Now is not the time for Profits”, declared our Commander in Chief. What? Excuse me? Hath my entire schooling been in vain? People sans funds have none. Those with loot support those who get the boot. Oh, you mean to print the money. That explains everything. I’ll await my million dollar check in the mail with baited breath. I’m certain that the price of bread will remain unscathed, and we’ll all live in continual bliss. Once upon a time there lived a Prince who said he could save the kingdom with a Cheshire smile and a divine right presence.
Everyone lived happily ever after…until inflation set in, or worse.
Now here’s another thing; we’ve opened the proverbial crack in the door for Federal imposition on Capitalism. Shall we next set wage limits by profession, etc.? And what’s this about buying American. Are we heading for Isolationism Redux? Didn’t we learn from the Great Depression where such short sighted small world thinking leads? Do we expect other nation states to sit idly by without economic retaliation and protectionism? Who would fill in the void to keep Treasury Note interest rates low? Americans on their own can no longer handle it. Just look at the cost of funds under the Carter administration, where one could purchase eighteen to twenty percent notes, at a time when the Chinese were a third world economy.
And what would this “well intended”, visceral, isolationist policy do to the rest of the world, but to place it into a deeper hole, with increased starvation, disease, dissension, riots, destabilization, coups, and insurmountable animus toward America? What do we do with a socially and economically diseased Mexico, whose government is already teetering on the point of anarchy, when this next unfathomable layer of stress is place upon our third largest trading parter. Buy American.. Do we kick out all of the foreign auto makers who have built plants in this nation, thus supplying jobs for jobless Americans?