Bank Payroll Controls

What are pay controls going to accomplish at companies which accepted bailout funds? Will such caps solve any problem, aside from drawing attention away from the Washington politicians’ inability to do anything correctly to resolve deep recession problems?

When you hire and attempt to keep personnel, you pay market labor prices. Or you get inefficiency. Moreover, the best employees leave for other opportunities.

Executive earnings were never a factor in the past financial meltdown. They were insignificant numbers, relative to overall financial problems. Executives whose salaries are being capped today are convenient scapegoats for ignorant and crowd-pleasing politicians.

Who hires these czars who cap salaries? Who are a czar’s friends? Who are his or her friendly lobbyists? What makes a czar qualified to judge?

In investment banking, employees generally get 50% of revenues. It is hard to tell what job is risky in advance to warrant a huge earnings reward. Only politicians have 20-20 hindsight, to tell bankers they are making too much money. That is, when and if everything works out well.

By the way, how many in the media are conversant with how fascism operated in Italy, Germany and Spain in the 1930s? Those fascists meddled with business the same way left-leaning politicos in the U. S. are today