Score Another One for Obama

I have said in this blog previously that I am a less government kinda guy. I do not like government intrusion into the private sector. I believe that the federal government causes more problems than it fixes.

Let me also say, in case anyone missed it, that I am not for all these bailouts. If these business's are going to fail because of their own mismanagement, let them fail. If the services that these business's provide is vital, someone will come in and pick up the pieces. If the services that were provided by the company are no longer needed, then the company was doomed to fail and all you are doing is throwing money at something and delaying the inevitable.

But now that the money has been given to these banks and auto makers you can bet your fanny that I am very interested in how that money is spent.

Enter President Obama. I saw an article on Foxnews this morning. Below is the title of the article and the link.

Obama to Limit Executive Pay for Bailout Recipients
Administration plans to limit pay to $500,000 a year for executives of bailed-out companies in a new get-tough approach to bankers and Wall Street.

http://www.foxnews.com/politics/first100days/2009/02/03/obama-plans-cap-executive-pay-government-assisted-financial-institutions/

There are going to be people, some are referenced in the article, that will not like the idea of this kind of government intervention in private business. These people feel that the government should in no way be able to place restrictions on the compensation given to company executives.

Normally I would agree with this sediment. But once these companies accept money from the TARP fund, those companies have agreed to government intervention. The government can continue this intervention until such time that the company pays the taxpayer back all the monies it received from said taxpayers. Don't like it...don't take the money. It is that simple.

The article does point out that some companies might decide not to accept the TARP money and would then subsequently close their doors. Well, you know what, they make their decisions and they must face the consequences. Most of these executives sat back and watched their companies going south without a care in the world. Why should they care? Look at the bonuses some of these folks got. Look at the golden parachutes. Many ran their company to the brink of bankruptcy and then got millions once they left the company.

How does one apply for a job like that? I want a job where I can fail miserably, still get paid, and then get millions when I am fired.

In the job I am in your are paid based on your performance. And if you perform poorly and get fired you get a kick in the ass when you leave. You may get two weeks pay but you are not getting any kind of golden parachute.

In addition, its not like these company executives have shown that they know how to spend money wisely anyway. Once the TARP money was received some of the companies held great parties for their executives at spas and resorts. Others bought that new corporate jet they just couldn't do without. If you can do that then you can do without the TARP money in my book.

So way to go President Obama. I still don't agree with the current stimulus package before the senate, but I have to give you kudos for sticking it to those companies that take government money.

I just hope it all makes a difference.