Saturday, December 12, 2009

Lobbying government for a pay raise

The Treasury Department has told four bailed-out companies that they can't pay some top earners more than $500,000 cash per year. But it's told the official who made that decision that the rule shouldn't always apply.

Kenneth Feinberg, the Obama administration's pay czar, said Friday that lobbying by Treasury and Federal Reserve officials helped persuade him to exempt about 12 executives from the salary cap.

Which is worse - - that we now have a federal "pay czar", that the government is now involved in setting executive salaries, or that you can now lobby the Treasury secretary for a raise?

The trouble with government's take over of industry isn't that it's "socialist". It's that it's ultimately inefficient and corrupt, like all government contracting. It's only a matter of time before the person lobbying for a raise is tempted to pay a kickback. Or, before all the "good" raises go to friends, family and cronies.

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