June 11, 2009

Keep Your Hands Off Executive Pay!!

The Democrats in the White House and the Congress are out of their minds. This is foolish populism run amok. Apparently there's a plan afoot to dictate executive pay in the private sector. Now I'm in a middle management position, , I'm no multi-million dollar executive, but this has crossed a line for me. I don't make millions of dollars, but I don't begrudge those who do.

The fact is, the higher someone goes up the employment chain, the greater the responsibilities they carry. Their decisions impact more and more people and are responsible for the livelihoods of more and more people and the investments of tenfold more. That's a lot to put on the shoulders of a person. If they do a good job, they earn a lot recompense. If they do a lousy job, they have a much longer fall if they get fired. In other words, they really do earn what they earn.

The Democrats have crossed a line into a weird amalgam of communism and fascism. They've made a lot of questionable decisions over the last few months. Many of those decisions have crossed into the realm of dictating too much to the private sector. But changing laws to dictate that behavior gets into the territory of infringing on liberty. They are impeding the free market, and it's self regulating mechanisms.

Does anyone really begrudge Kobe Bryant making whatever the NBA free market will bear? Does anybody begrudge Britney Spears making millions of dollars? Okay, maybe a little. But if a team is willing to pay Bryant millions or if millions of people are willing to buy Britney's music, then they are simply collecting as much as they can for their specific talents. How is the CEO of Coca Cola any different? He isn't. And guess what - he's a free agent. Just like everyone else in the country. And if they can cap pay at one level, how long before that level gets lowered until it eventually affects you personally?

Let's talk law of unintended consequences. If you limit someone who is making $80 million to $5 million, what's to stop him or her from going to work in Britain, or Dubai, or Australia or Italy? A language barrier? Family? Maybe for some. But what you are talking about in terms of national interest is losing your top talent. Using the NBA example again it's like one team imposing it's own salary cap and hoping to compete with other teams that don't do the same. That team in this analogy, is not Home Depot, it's the United States. Do you really want to lose all of your captains of industry just like you're losing all your industry? That will just compound the problems the country faces.

Is no one capable of thinking more than 5 minutes ahead in this administration?

This is yet another example of the left hand not knowing what the lefter hand is doing. The left hand is increasing taxes, and if you believe the propaganda, only on the wealthiest of Americans. But the lefter hand is capping that taxable income. Here's the mix up - if you limit the income, you limit what you can tax. DUH!!! Is anybody thinking any of this through? The answer to that question is NO unless this is simply all about a power grab. Then the answer is YES, the Democrats are thinking this through and the public is blithely stumbling along with no clue how their freedoms are slowly being suffocated.

This is a bad idea, period.

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