STEP 2 (SOCIALISM) - Government Determines your wages

About: www.washingtonexaminer.com >> politics

source: ... But now, in a little-noticed move, the House Financial Services Committee, led by chairman Barney Frank, has approved a measure that would, in some key ways, go beyond the most draconian features of the original AIG bill. The new legislation, the "Pay for Performance Act of 2009," would impose government controls on the pay of all employees -- not just top executives -- of companies that have received a capital investment from the U.S. government. It would, like the tax measure, be retroactive, changing the terms of compensation agreements already in place. And it would give Treasury Secretary Timothy Geithner extraordinary power to determine the pay of thousands of employees of American companies

...Nixon in the 70's tried this with their wage/price controls & it didn't work much at all. I was working in a bank at the time & I remember that the boss told me sorry, you deserve more, but I have only so much I can do within the Nixon rules.

Soon my crystal ball says that even those companies without bailouts will have restrictions. If the government bails out other companies so that they compete even though they are inefficient & stupid isn't everyone eventually going to need a bailout. Watch for STEP 3 coming to your neighborhood soon.

Comments

Mark de LA says

MR 2009-03-31 14:27:55 11722

The bill is apparently H.R. 1664 - Grayson-Himes referred to on govtrack here - where it got it's popular name "The Pay for Performance Act" is curious.

Other media on it here & here.

Mark de LA says

Calling something a fantasy doesn't prove shit. Of course Obama wouldn't run GM from the WestWing of the WhiteHouse; he doesn't know anything about manufacturing cars that hasn't been told him by someone else.

This article today suggests he's going to Ease GM into bankruptcy. I'm sure he's going to protect his union buddies first. **<== gratuitous prediction!

source: ... (Fritz Henderson - interim CEO)

“By no later than June 1, if we’re not able to accomplish this outside bankruptcy, we’ll be in bankruptcy,” he said at a news conference in Detroit on Tuesday. “It’s pretty clear. The government was unequivocal.”

The effort is a new role for the government, which has not pushed companies into bankruptcy in the past as much as it has stepped in when all else fails.

More speculative details in the NY Times article.

Mark de LA says

And now the heavy hand of the government on Bank of America is exposed!

source: ...The government threatened to oust Bank of America Chief Executive Ken Lewis if the giant lender didn't go through with its acquisition of struggling investment bank Merrill Lynch, according to the results of an investigation by New York Attorney General Andrew Cuomo released Thursday.

... This and other facts unearthed by the probe raise questions about the transparency of the governments Troubled Asset Relief Program, as well as corporate governance and disclosure practices at Bank of America, Cuomo wrote

...

STEP 2 (SOCIALISM) - Government Determines your wages

About: www.washingtonexaminer.com >> politics

Tags

Comments

See Also