Say Goodbye to Free Enterprise

02/04/09

B. Hussein Obama has begun a concerted effort to limit executive pay to $500,000 a year for companies receiving bailout funds.  A move that is likely to be popular with average Americans.  When we hear of CEO’s receiving billions in parachute compensation and corporate jets and stock options, most of us are likely to cheer this move by Obama.  However, when given a reasoned look, this move by Obama will cripple companies, destroy free enterprise, and squander the money he stole from us in bailing out the companies to start with.

First, those companies receiving bailout funds will not be competitive in recruiting the best and brightest executives.  How can they be when they can’t compensate as well as a company that doesn’t take the bailout money?

Second, without that competitiveness, those companies will ultimately fail thereby rendering them incapable of paying back the money that was stolen from us, the taxpayer.

One is tempted to believe then, that given this restriction fewer and fewer companies will take the bailout funds thus, circumventing Obama’s plan to limit compensation.  Obama has a plan for them too.  His stated plan is to spread this practice throughout public financial institutions requiring them, whether or not they receive government funds, “to disclose compensation arrangements and prove that they are compatible with sound risk management.”  Who will determine what “sound risk management” is?  Non other than tax evading Treasury Secretary Geithner.  The man who cannot operate TurboTax will be telling banks and eventually all companies how to run their businesses.

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