Why the GOP Should Take the Lead Against the AIG Bonus Babies
Can capitalism survive the behavior of some capitalists? It’s always been an open question. But if capitalism is to survive, shouldn’t the Republican party, the party that defends democratic capitalism, be particularly vehement in denouncing its excesses? Isn’t this a pretty spectacular one? And isn’t this a moment for the GOP to separate itself from the Bush administration as well as the Obama administration, who together have been responsible for an incompetent and improvident bailout? Figuring out the right policy going forward with respect to toxic assets and the rest is, of course, a major intellectual task. But being on the side of a healthy populist reaction to the AIG situation is at least a good political start.
And, note: President Obama just denounced AIG in a morning event.
And, from the GOP – CRICKETS.
Update:
Is it right to mock Obama and Geithner on their outrage?
YEAH…..
Technorati Tags: AIG, William Kristol, Barack Obama
One Comment
Sal
Kristol is wrong. The GOP should NOT be coming out against this. Many of these bonuses are part of salaries that people in the low and mid-level ranks count on based on their own sales figures. So, if a mid-level manager at AIG does what he is supposed to do and meets his sales targets, and was promised a bonus a year ago if he met those sales targets, why should he not get a bonus?
The bailout money which was given to AIG (and shouldn’t have been, in my view) was given with no strings attached. Why is it fair to suddenly attach strings to money already received? True Free Market Conservatives should speak out against the bailout, not against AIG. AIG is simply operating as a normal company, they applied for money and were given it, instead of letting the company fail. True free market Conservatives would point out that this is why bailout money should not have been given, not that the bonuses of the rank-and-file should be rescinded ex post facto.