AIG Snubs Congress
Insurance company AIG received $170 billion federal bailout money and now they intend to pay out $160 million in bonuses. Edward Liddy, AIG chairman, claims these bonuses are necessary to attract and retain the best and brightest. This would lead one to question why the company needed a bailout if the “best and brightest” were in control. If they don’t get a bonus isn’t it possible they would go to another company that gives bonuses and improve that company’s performance? Is this not they way capitalism is supposed to work? If so, bailouts are really unnecessary. Good companies excel and bad companies fold thereby allowing the normal evolution of capitalism to continue. When outside bailout money is introduced into the economic system doesn’t this disrupt the normal flow of private profit and provide a false sense of revenue?
There is now misplaced anger. Congress would have the average American believe that we should be angry at AIG. Let’s not forget who authorized this bailout money - it was Congress, it was a mistake. Average Americans had no say in the matter. Congress has interrupted the normal flow of economics. Instead of allowing failing companies to fail the United States Congress has propped them up with billions of dollars. There were no stipulations placed on these companies as to how they were to spend this money. Our money was given away freely, without reservation and no prerequisites as to how the billions would be used. Congressional politicians are now incensed with their loss of control over these incompetent companies. AIG is no different now than before the bailout. Why should anyone be surprised or angry with the company bonuses?
The American voter’s wrath should be channeled in the appropriate direction - an irresponsible Congress.
