UPDATE: Although the Times article seems to imply (but not directly state) that only companies receiving bailout money will be affected by the legislation, the actual text of the bill is clear that it can apply to any depository institution with at least $1B in assets. The arrogance of this legislation is breathtaking.
The House Democrats must be really feeling their socialist oats, because they have passed a bill that, if enacted, would represent one of the final steps toward socialism in this country. Having already regulated the minimum wage in this country, House Democrats now are seeking to regulate maximum wages for employee of private companies as well:
WASHINGTON — The House approved a measure Friday that would put new constraints on executive pay, capitalizing on populist outrage over multimillion-dollar bonuses to Wall Street executives whose companies were bailed out by taxpayers.
The measure passed 237 to 185, with most lawmakers voting along party lines. The Senate will consider executive compensation as part of a regulatory overhaul package after its August recess.
The bill, introduced by Representative Barney Frank, Democrat of Massachusetts, enables regulators to ban payments that give workers what the legislation calls “perverse incentives” to take risks that could hurt the nation’s financial system.
The bill gives the Securities and Exchange Commission, among other federal regulators, nine months to propose rules for regulating compensation packages at institutions whose assets total more than $1 billion.
There’s at least a theoretical justification for this, in that the government now has at least part ownership in the corporations at issue. Of course, that is another way of saying that the theoretical justification is that we have already mostly socialized these industries, so we might as well go ahead and do it whole-hog.
This radical measure, however, is too much socialism for even the most liberal of Republicans, including Mike Castle of Delaware. This bill shows that there are fundamental differences between the ways that even the most conservative of Democrats and the most liberal of Republicans view private industry in this country. The vote on this measure illustrates with crystal clarity that no matter hwo conservative a Democrat might talk, once elected, they have no inclination to respect the free market at all.
Neil Stevens
Daniel Horowitz
John Duncan TN(2) & Tim Murphy PA(18)...
mbecker908 (Diary) Sunday, August 2nd at 4:47PM EST (link)Can we primary these guys. They were the only two House Rs to vote for this travesty.
How fitting that Barney Frank uses
The_Rebel (Diary) Sunday, August 2nd at 5:09PM EST (link)the word “perverse” in this legislation.
Directive 10-289
Stephen Halsey (Diary) Sunday, August 2nd at 5:11PM EST (link)“Point Seven. All wages, prices, salaries, dividends, profits, interest rates and forms of income of any nature whatsoever, shall be frozen at their present figures, as of the date of this directive.”
Ayn Rand sure had a clear vision of the future, didn’t she?
Hit hard. Hit fast. Hit often.
http://twitter.com/stephen_halsey
Well, we could quibble on that point.
mbecker908 (Diary) Sunday, August 2nd at 5:15PM EST (link)BO’s not “freezing” wages, etc. he’s going to be “reducing” them.
Which will also have an unintended consequence because currently the top 1% pay more in taxes than the bottom 95%.
Leon, you nailed it on why so-called Blue Dogs
TNJim (Diary) Sunday, August 2nd at 5:16PM EST (link)can’t be trusted:
Well said.
Less than 23 dems voted against cap and trade and 9 against the stimulus - LINK
Mike gamecock DeVine (Diary) Sunday, August 2nd at 5:26PM EST (link)http://www.redstate.com/gamecock/2009/08/01/a-rece/
Mike DeVine’s Examiner.com, Charlotte Observer and The Minority Report columns
“One man with courage makes a majority.” – Andrew Jackson
Yep.
Leon H. Wolf (Diary) Sunday, August 2nd at 5:31PM EST (link)The solution to pretty much every problem in Washington is less Democrats.
————
We can’t stop here. This is bat country.
Major sectors of commerce will just quit
izoneguy (Diary) Sunday, August 2nd at 5:35PM EST (link)And that is the democrats goal. To dis-incentive the marketpalce to the extent that companies just close shop and will go fishing.
Less taxes, more unemployment.
The democrats have it all backwards as usual.
“Employees” will just become their own C-corps.
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.
I read the NY Times piece
cclive Sunday, August 2nd at 5:55PM EST (link)and it still wasn’t clear, is this for all corporations or just the ones who took bailout money?
Now that you mention it...
Leon H. Wolf (Diary) Sunday, August 2nd at 5:57PM EST (link)I read it again and I’m not so sure either. Hrm.
————
We can’t stop here. This is bat country.
All corporation, cclive
Jeff Emanuel (Diary) Sunday, August 2nd at 6:24PM EST (link)From the bill text:
JE
Thats bad
cclive Monday, August 3rd at 4:33PM EST (link)but it’s not all corporations, sounds like depository institutions and given the added legalese maybe just those that deal with the FDIC? Still a slippery slope though.
What about athletes & movie stars?
izoneguy (Diary) Sunday, August 2nd at 6:02PM EST (link)Why wouldn’t salary caps apply to them?
Many of these people get paid insane amounts of money and go around supporting the most liberal of politicians. I wonder how long they will support politicians who want to tax them to death?
The point cannot be made often enough: Modern liberalism, as embodied in the Obama presidency, is the defender of the status quo. And the status quo is a road to economic ruin. Political forces cannot redistribute the wealth that the economic system does not produce.
What About Politicians?
Ausonius (Diary) Sunday, August 2nd at 6:09PM EST (link)Why not taxfiscate the wages of politicians?
Let’s tax the party in power at 90% to teach them a lesson about success and how unfair it is to the party they defeated!
Ausonius: 310-395 A.D. Teacher, Poet, Consul, General, Farmer.
Personal Tutor to the future St. Paulinus of Nola and to young Gratian, heir to the throne during the turbulent final years of the Western Roman Empire. When his former student Gratian was assassinated, Ausonius threw up his hands and retired to his farm in Gaul. Rome was captured by barbarians 14 years after his death.
Cato@rock.com
As in many other communist/socialist regimes around the world...
Husker (Diary) Sunday, August 2nd at 7:49PM EST (link)athletes and artists are allowed to keep the spoils of their labor. Athletes/artists were held in high social regard in Communist Russia.
The Socialist Party USA has a plank in their platform under Human Needs stating: We support guaranteed incomes and grants for artists and performers.
Nixon & Obama
erp Sunday, August 2nd at 7:12PM EST (link)Remember Nixon that other socialist disaster for a president. He instituted wage and price controls too and that resulted in the WIN (Whip Inflation Now) buttons that were so popular during the Ford administration. Carter built on that so that by the time he was finished interest rates were 21% and gas lines were miles long.
Remember what Santana said, “Those who don’t remember history will be forced to repeat it.”
erp
You Mean George Santayana
Ausonius (Diary) Sunday, August 2nd at 7:40PM EST (link)who states this in his book from 1905 “A Life of Reason.”
“Santana” was at Woodstock ’69!
Ausonius: 310-395 A.D. Teacher, Poet, Consul, General, Farmer.
Personal Tutor to the future St. Paulinus of Nola and to young Gratian, heir to the throne during the turbulent final years of the Western Roman Empire. When his former student Gratian was assassinated, Ausonius threw up his hands and retired to his farm in Gaul. Rome was captured by barbarians 14 years after his death.
Cato@rock.com
CONSTITUTION
DevilDoc (Diary) Sunday, August 2nd at 7:18PM EST (link)What article of the Constitution or amendment to the Constitution can Congress point to that explicitly empowers the U.S. Congress–or infers that Congress has the authority–to establish through legislation the pay and compensation of private business?
They cannot use the excuse of we bailed them out. Refer to first question and Article One, section eight of the Constitution.
Section 8. The Congress shall have power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States; but all duties, imposts and excises shall be uniform throughout the United States;
To borrow money on the credit of the United States;
To regulate commerce with foreign nations, and among the several states, and with the Indian tribes;
To establish a uniform rule of naturalization, and uniform laws on the subject of bankruptcies throughout the United States;
To coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures;
To provide for the punishment of counterfeiting the securities and current coin of the United States;
To establish post offices and post roads;
To promote the progress of science and useful arts, by securing for limited times to authors and inventors the exclusive right to their respective writings and discoveries;
To constitute tribunals inferior to the Supreme Court;
To define and punish piracies and felonies committed on the high seas, and offenses against the law of nations;
To declare war, grant letters of marque and reprisal, and make rules concerning captures on land and water;
To raise and support armies, but no appropriation of money to that use shall be for a longer term than two years;
To provide and maintain a navy;
To make rules for the government and regulation of the land and naval forces;
To provide for calling forth the militia to execute the laws of the union, suppress insurrections and repel invasions;
To provide for organizing, arming, and disciplining, the militia, and for governing such part of them as may be employed in the service of the United States, reserving to the states respectively, the appointment of the officers, and the authority of training the militia according to the discipline prescribed by Congress;
To exercise exclusive legislation in all cases whatsoever, over such District (not exceeding ten miles square) as may, by cession of particular states, and the acceptance of Congress, become the seat of the government of the United States, and to exercise like authority over all places purchased by the consent of the legislature of the state in which the same shall be, for the erection of forts, magazines, arsenals, dockyards, and other needful buildings;–And
To make all laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the government of the United States, or in any department or officer thereof.
What a perfect title for The One
Lammo (Diary) Tuesday, August 4th at 12:56AM EST (link)Oh, wait, you’re describing the progress of the Socialist agenda. Oh, well, I still think it’s a good name. If I was any good with Photoshop I think I could make a good poster out of that one (of course it would help if I owned the software
) !
Don’t be so open minded that your brains fall out. (John Corapi, The Black Sheep Dog)