In today's Washington Post, Charles Krauthammer has a brilliant article entitled "Bonfire of the Trivialities". I usually make up my own headlines for articles, but in this case his was so fantastic, I had to use it. Charles Krauthammer points out:
"...$165 million is a rounding error. It amounts to less than 1/18,500 of the $3.1 trillion federal budget. It's less than one-tenth of 1 percent of the bailout money given to AIG alone. If Bill Gates were to pay these AIG bonuses every year for the next 100 years, he'd still be left with more than half his personal fortune."
What we need here is a little perspective--not a lynch mob. Charles Krauthammer points out that the way to break a contract is through Chapter 11. The bonus contracts were legal and binding and other than Chapter 11, could not be broken. Are we willing to let Congress cancel contracts because mob anger has been stirred up. Are you currently looking for your pitchfork and torch? If you are, don't aim either at AIG--aim at the CRA (Community Redevelopment Act) passed under Jimmy Carter which required the banks to make risky loans. Aim it at congressional Democrats who blocked seven attempts to regulate Fannie Mae and Freddie Mac. Aim it at the spaghetti-spined Republicans who voted for the stimulus bill.
Mr. Krauthammer further states in the article:
"Even worse are the clever schemes being cooked up in Congress to retrieve the money by means of some retroactive confiscatory tax. The common law is pretty clear about the impermissibility of ex post facto legislation and bills of attainder. They also happen to be specifically prohibited by the Constitution. We're going to overturn that for $165 million?"
It's time for all the angry people to step back and take a breath. I'm tired of hearing successful people being described as 'greedy'. What about the sin of 'envy' that seems to be plaguing a fairly large percentage of our population? I have one final question. Is anyone going to be better off if AIG executives are forced to give up their retention bonuses or are taxed 100 per cent on them?
Please read the entire article in the Washington Post. There are also some notes about a provision snuck into one of the spending bills that will cause a trade war with Mexico. Please do not look where the 'magicians' want you to look--pay attention to the other hand!
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