Saturday, October 24, 2009

The WRONG "Pay Controls"

Talk about "Nixonian" government...paranoia and wage/price controls.....

The pre-weekend information dump included an announcement by the Federal Reserve and Treasury Department that the federal government proposes to extend its control over pay packages beyond financial institutions which received bailout funds.

According to the press release, the government proposes to monitor and, if need be, veto pay packages at any banking institution subject to federal regulation

I don't have a problem with a serious pay-haircut for the bankers who were responsible (or irresponsible, if you prefer) for getting their Banks into TARP-dependency.

But ALL Banks?


Jacobsen: base government control of salaries on mere regulatory jurisdiction would give the government control over much of the economy, essentially any business involved in interstate commerce. This is the harm which many of us feared from the Trojan horse of the bailouts

And as he points out, that opens the door to any commerce which falls under Federal jurisdiction, including truck drivers, MD's, or basically the entire friggin' economy.

HT: Legal Insurrection

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