Thursday, February 5, 2009
Wait, before the hand basket to hell leaves the station, consider this:
Is limiting the pay of executives (lets start with those whose companies accept TARP and other government bail out strategies) ever a good thing?
One of the most blatant ways this has ever previously been done was the Sherman Anti-Trust Act. That law was purported to do away with rampant fraud in the railroad industry at the time of our Nations tax payer financed Transcontinental railroad construction.
(note: The Great Northern Railroad was privately financed by James J. Hill.)
The anti-trust act collapsed an ongoing non-conflict of interest attempt by James J. Hill to open trade with China by sea.
It did punish railroads who had defrauded our government (they employed bad land surveying to lay more track than required to gain greater tax payer monies- A CONFLICT OF INTEREST- for the fraudulent expenses of more & substandard track sold by shell corporations the rail roads controlled) The new law broke these companies up. It was worded to ALSO BREAK UP the businesses of entrepreneurs who used their OWN MONEY- NO CONFLICT OF INTEREST- to spearhead international trade. I ASK WHY?
Poorly run uncompetitive government sponsored and or facilitated monopolies are the REAL problem, the real DYSTOPIA in business, NOT regulating the salaries of the executives in these moribund firms.
Additionally, when your profit margins are shrinking due to currency devaluation from too much borrowing, creating bigger corporations which use the same broken means of exchange (nearly worthless paper money AND SECURITIES) hardly goes to the root of the problem. It spreads the problem around and requires insider lobbyists to escape accountability. Smaller more responsible businesses are squeezed out of such a marketplace by political pull, rather than market competition. The aristocracy of competency is lost!
All such artificially propped up enterprises eventually collapse and lay waste to labor markets globally.
To sum up, RUINING an economy is like mating elephants; it's done on a high level while making a whole lot of noise.