Sunday, October 25, 2009

Creeping Semi Totalitarianism

There is so much concern about how much bank executives and their “top” talent are paying themselves millions of dollars especially after having being bailed out by the tax payers. There are basically two arguments.

First there are those who say it is immoral for people to pay themselves millions after being bailed out by the taxpayers, seems understandable.

The second group says top talent deserves to be paid millions, otherwise those talented people will pack their bags and go to other companies, one needs to pay top dollar supposedly to have a good stock broker. Yet none of these “top talent” had a sell on AIG, but that is besides the point.
Take Goldman Sachs for example, they have paid all the money from the bailout, or most of it, who knows what is true, why can they not pay those they feel like as much as they want. They owe nothing anymore so why the worry. It is immoral at this stage to demand that Goldman Sachs restrict pay when they owe nobody anything. Goldman Sachs is not obligated to be dictated to by none shareholders. They can give each other as much as they want. But if Citi Bank owes the government money then no way can they pay themselves millions of dollars, one says themselves because it is a buddy buddy thing.

Tax payers have no right to be angry at the likes of Goldman Sachs, they should be angry at themselves at squarely at Bush and Obama for having bailed out Goldman Sachs, that was immoral, they should not even be existing, but both Bush and Obama figured they will retire one day who will sponsor their foundations and pay them to run around the world to make speeches, the likes of Goldman Sachs, that is why the bailout, do not doubt it. It was done, no need to cry over spilled milk, but nobody now has a right to regulate their pay, next time people should not be so blind.

Regulation will help with nothing except to create rigid class systems, that is what Obama and Bush have been working towards, the market punished the untalented Goldman Sachs and made space for those with talent, but creeping totalitarianism ensured that they survived, now they are back saying how talented they are.

Are bank executives, or corporate executives for that matter over paid. Maybe yes maybe no, but that is not up to the government to decide how much people should be paid. Corporations have shareholders, if they let the board pay themselves millions of dollars then the shareholders are getting exactly what they deserve. Take for example the Rockefellers, well if they do not want to be involved in Exxon, then let the board pay themselves as much as they like.

If for example the largest shareholder owes 2 – 3% of a large corporation and the board only has 0.5% and the largest shareholder does not want to be involved they want to go bungee jumping instead of taking their responsibilities seriously they deserve to be cheated, it has been known for thousands of years that when the cat is away the mice will pay, even the book of proverbs in the Bible of the west talks about a foolish child will lose their inheritance to a wise servant. Go and bungee jump and they will take your inheritance, but it is not for the government to come to your defense. Obviously owners do not pay themselves ridiculous amounts, look at Bill gates taking economy class for years even as a billionaire.

These people did not build these institutions like General Motors, so even as General Motors was collapsing they wanted to fly by private jets to get bailout money.

Is this the nonsense that America wants to export to the world, that some people are more equal than others and need to be bailed out, too big to fail, BS. Is this the kind of creeping totalitarianism that Obama and Bush want to export to the world behind the veneer of a government for the people by the people, these are dangerous times for freedom, as freedom is attacked in every corner from USA to Iran, Uzbekistan, Zimbabwe, there are those who want to rule for ever, Goldman Sachs time was over, thanks to Bush and Obama they will be around for ever, and morally they have the right to pay themselves what they like.

Bhekuzulu Khumalo

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Bhekuzulu Khumalo

I write about knowledge economics, information, liberty, and freedom