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i think even 500k is absurd.
if you're in charge, and you're going under, you screwed up and don't deserve shit.
a) you should be fired without severence
b) if it wasn't your fault, your salary should be reduced to 100k. 100k in NYC is practically minimum wage anyway
Crap... What will they do now? We need to get a fundraising event together for them. Maybe a food drive.
I mean they've got a lot of mouths to feed! Their whole family, all the servants, maybe even their families... Yachts don't fuel or crew themselves either... man o man it's getting bad.
There is one flaw to this logic. Well not your logic, but the logic of a stimulus in general. I'll just use sports as my example too.Let me paint everybody a picture.
Let's say a number of teams in Major League Baseball have had a few rough years. The Yankees, the Red Sox, and a few other big name teams are in dire straights after a few bad seasons and can no longer do business. In an effort to save Major League Baseball they ask the government to intervene. The government, in an effort to save Baseball, comes up with a "baseball stimulus package", aimed at bailing out teams in need. Not all teams need bailed out mind you. The Angels, the Dodgers, and the Mariners, while not as big as ball clubs like New York, are doing just fine with their smaller market shares even though the downturn in baseball has hurt them as well.
Now let's say Obama comes out and says that no member of the ball clubs recieving aid can make more then $200,000/yr. The logic behind this move is that they're in dire straights and therefore do not deserve to be "fat cats" of the baseball diamond anymore.
Now let's say "Mark" (a fictional baseball player) is the star pitcher for the New York Yankees, now a part of the "Baseball Bailout". It isn't that every member of the Yankee's organization is performing poorly, Mark was a Cy Young (one of baseball's highest awards) finalist for the last five years. The Yankee's real problem is with their defense, poor play on the bases has yielded too many losses, causing the problem the Yankee's are faced with. Mark is a genuine talent.
Facing a $200,000/yr salary, one twenty fifth of what we was formerly making (5 mil a year), Mark receives an offer to play ball for the Angels for $3,000,000 a year. The Angles could never afford his $5,000,000 salary, but now with him only making 200K a year they're damn competitive in acquiring him as a free agent. Mark signs, so does the Yankee's short stop who was a real talent. The Angles also acquire two pitch hitters, an outfielder, and a 2nd Baseman from other teams who have signed on to the "Baseball Stimulus" package and are forced to salary cap their talent. This pattern repeats itself around Major League Baseball, with free agents of high quality leaving the bail out teams in favor of higher pay elsewhere.
When the dust clears the Yankees, Redsox, and other bailout teams have had a mass exodus of upper level talent. Teams like the Angels and the Mariners take their place at the top of the baseball food change and teams like the Yankees never again rise to the level they once were.
By putting a $500,000 salary cap on executives, the government has just handcuffed the businesses we're trying to help. For every GMC or Chysler who is involved in the bailout, there is a Honda or a Toyota who is not. You think these foreign companies wouldn't love to get their hands on our executives for bargain prices? While some of them don't deserve the money they earn, others are the brightest minds in the free market! AND THEY ARE ALL FREE AGENTS.
Just like the Yankees and Redsox, companies like GMC and Chrysler will never archive the success they once had without their big talent. When a company fails to grow, the people who have invested in it are the ones who financially pay the price. In the case of GMC Chrysler, and countless other bailout bound companies, that investor is US, the American tax payer.
By putting a $500,000 salary cap on executives, the government has just handcuffed the businesses we're trying to help.
You think these foreign companies wouldn't love to get their hands on our executives for bargain prices?
yep, thats what i was going to say before i read the post.the flaw to all that logic is that the pitcher is a member of a team. he is NOT the owner or CEO that has a direct say on how his teamates are at doing their jobs and 'winning games'.