There are a number of legitimate facets to the angst over huge bonuses at AIG.
On one hand, the government has no business dictating the actions–especially the internal actions and pay decisions–of a private company.
On the other hand, AIG took the taxpayer’s money when they said they needed a hand (and when the Democrat-controlled federal government determined they needed a hand)…which means maybe the federal government does have some legitimate interest there, after all.
But then, those bonuses the company paid out were contractual responsibilities the company had…and unless the taxpayers and the capitalist-hating liberals in the federal government are advocating further un-American government activities such as forcing a company to violate its contracts, then those responsibilities need to be met.
It’s interesting, too, that while much of the howling is coming from the Democrats on Capitol Hill and in the White House…it was Democrats on Capitol Hill and in the White House who are responsible for specific language in the porkulus, er, stimulus bill which guaranteed those contractual obligations would be kept.
From CNN, Democrat Senator Chris Dodd first denied anything to do with this language:
On Tuesday, Dodd denied to CNN that he had anything to do with adding the language, which has been used by officials at bailed-out insurance giant AIG to justify paying millions of dollars in bonuses to executives after receiving federal money.
But now he’s fessing up.
He said Wednesday that the “grandfather clause” language “seemed like innocent modifications” at the time.
“I agreed reluctantly,” Dodd said. “I was changing the amendment because others were insistent.”
Who were these “others”?
Dodd acknowledged his role in the change after a Treasury Department official told CNN the administration pushed for the language.
Hmmm. A little faux indignation from the Democrat-controlled Capitol Hill and White House, eh? More than a little.
Seems the only thing we can count on from Democrats in Washington is a lot of two-faced nonsense and crocodile tears aimed in whatever direction will garner them the most points with the American public.
If you are a liberal, go ahead and bury your head in the sand and just keep on trash-talking evil capitalists. If, however, you’re interested in learning more about the facts involved in this controversy, check out the video below which provides not only a crash-course in this particular issue, but in the free market itself.