Controversy: AIG has decided to give bonuses to employees. A company who receives government handout should not be in a position to reward employees who presumably do not deserve such a bonus. President Obama and other politicians had vocally spoken out against these bonuses.
"My colleagues and I are sending a letter to [AIG CEO Edward] Liddy informing him that he can go right ahead and tell the employees that are scheduled to get bonuses that they should voluntarily return them," Sen. Charles Schumer said on the Senate floor. "Because if they don't, we plan to tax virtually all of [the money] ... so it is returned to its rightful owners, the taxpayers." (Source: CNN)
Why Schumer is wrong: You can not make laws directed at a select small group of people, that is oppressive and unconstitutional. The government gave these banks money, they can reward employees with that money no matter who wrong the government thinks they are this is not a national bank it is an AIG bank.
RESOLUTION: There are 3 choices to stimulate the economy. 1)Nationalize the banks temporarily (Government calls shots like bonuses and lending)
2) Give the banks money and keep giving them money (what we are doing now, and then asking the banks to listen to the government)
3) Let the banks fail (do nothing, true capitalism)
The best choice is #1 although there are great arguments for each. Give the government complete control temporarily and taxpayers like you and me won't have to worry about wasted spending like bonuses.
No comments:
Post a Comment