First, they fed the bankers, then turned on them.
Then they fed the automakers, then turned on them.
Eventually, they will want to feed you..
The Obama administration is expected to impose a cap of $500,000 on the compensation of executives at companies that receive large new infusions of federal bailout money, NYT is reporting.
This is really twisted stuff, once you think about it, and if you understand how free markets work.
It is not the government's job to say whether an exec should earn $5, $50,000, $500,000 or $5 million. Maybe what you need to get a sold turnaround guy is $600k or $750k or $2 million k. You won't get any of these guys with a $500k cap. Maybe you'll just get to keep the losers that are already in place.
The government prevents these companies from failing, which would have landed these execs on their butts, on the sidewalk, with income equal to $0.
And, instead, the incompetents are kept in place, with micro-management by a government that didn't see the crisis coming, but deems these guys worthy of as much as $500k.
Of course, this nuttiness all makes great headlines.
They always regulate the easy stuff first. But, it won't stop at this by a long shot. That's why government micro-management of the economy must be fought on principle, at every turn.