Wage Controls Are Brewing

One of the hallmarks of a free economy is the ability to achieve anything you desire based on your own ability and talent.  That's why celebrities are paid so much more than the rest of us.  That is why people work hard to get an education that goes past the minimum requirement.  That is also why financial risk takers are highly rewarded--they take financial risks.  It's called incentive.  It is also a part of human nature that people will work harder if they know they will be rewarded for it.  That is part of what keeps an economy growing--people willing to take risks and people being rewarded for hard work and risk taking.  I challenge you to find someone with an income over $225,000 per year (I believe that's Obama's latest target for increased taxes) who works a simple forty-hour week.  Anyway, that is part of the foundation of our economy.

The free economy is about to be challenged.  Yesterday's American Thinker published an article by Rick Moran stating the following:

"At the same time, House Financial Services Committee Chairman Barney Frank (D., Mass.) is working on legislation that could strengthen the government's ability both to monitor compensation and to curb incentives that threaten a company's viability or pose a systemic risk to the economy.

Among ideas being discussed are Fed rules that would curb banks' ability to pay employees in a way that would threaten the "safety and soundness" of the bank -- such as paying loan officers for the volume of business they do, not the quality. The administration is also discussing issuing "best practices" to guide firms in structuring pay."

This is the beginning of government wage controls.  I wonder what impact that will have on people vying for admission to some of our more prestigious colleges.  If you can't make enough money to pay your $60,000 a year tuition, are you willing to pay the tuition?  The economy will thrive if the government restraints are taken off.  Any restraints on capitalism need to come from individual morality and ethics.  Maybe that is where we need to make the change.