What did pay controls accomplish at companies which accepted bailout funds? Have such caps solved any problem, aside from drawing attention away from Washington’s inability to do anything correctly to resolve deep recession and job problems?
When you hire and attempt to keep personnel, you pay market labor prices. Or you get inefficiency, with the best employees leaving for other opportunities.
Executive earnings were never a factor in the past financial meltdown. They were insignificant numbers, relative to overall financial problems. Executives were mostly convenient scapegoats for ignorant and crowd-pleasing politicians.
Other questions: 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?
Only politicians have 20/20 hindsight, to tell executives they are making too much money. That is, when and if everything works out well. How about actors and ball player income?
Many in the media are not conversant with how pay controls are an integral part of state capitalism, such as the type fascists operated in Italy, Germany and Spain in the 1930s. They started out meddling with business the same way left-leaning politicos in the U. S. are today.
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