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Showing posts from October 26, 2009

Curbing pay will not eliminate roots of crisis

Business Times - 27 Oct 2009


Curbing pay will not eliminate roots of crisis

By LEON HADAR
WASHINGTON CORRESPONDENT

PROPONENTS of the free market were quick to express their disdain over the sight of American bureaucrats imposing restrictions on the pay of executives on Wall Street. The 'socialists' in the Obama administration were taking the first step in having the government dictate salaries in the private sector, they contended.

You know the story. First, they came for the executives in companies that received government bailout money, and I didn't speak out - because I didn't receive government support. Then, they came for everyone else . . . Yep! It's the slippery slope on the road of turning the USA into the USSR, starting with enforcing the level of pay on top executives at 'too big to fail' firms under TARP.

Well, comrade, the Obama administration does have something called a Pay Czar - 'Czar' being a pre-Soviet term - who last week unveiled …