Republicans Are Confusing Me - I Thought They Were Dead Set Against Caps On Exec Compensation

[Median Democrat]

My memory must be failing.

Just last month, Republicans were vigorously opposing ANY type of cap on executive salaries or bonuses for firms receiving bailout money. Such caps were being denounced as socialistic. In other words, we are now complaining about some provision the retroactive abrogation of previously executed bonus contracts with limits being applied on a going forward basis only, BUT the Republicans were against ANY cap.

Now, Republicans are trying to out-do each other in expressing outrage over the payment of bonuses by AIG to its employees. These were bonuses paid pursuant to contracts entered into nearly a year ago, and the complaint is that the Federal Government should have passed a law in February 2009 that nullified these contracts.

What? Can someone explain this to me? Perhaps my memory of events just one month ago is failing:

http://www.huffingtonpost.com/2009/02/06/gop-opposes-pay-limits-on_n_164544.html

/snip

Other Republicans disagreed. "It's still government running business," Inhofe said.

"It's a leap, because the executive at the bank is a free agent who can leave the bank and go to work someplace else," said Sen. Bob Bennett (R-UT) of the welfare comparison. "You run the risk of having a brain drain at the bank of their top talent."

Bennett said, "Some of the things some of these bank executives have been doing demonstrates they have a tin ear. At the same time, I'm generally troubled by wage and price control, no matter how logical it may appear."

The objection to the government intervention in salaries is rooted in the Republican belief that government is inherently ineffective. "If Congress can run a financial institution, it belies everything I've seen in this body. Government does not do a good job running private institutions," said Sen. Kit Bond (R-MO).

Sen. Tom Coburn (R-OK) agreed: "If we do such a good job of running the federal government, what business do we have telling them how to run the banks?"

The GOP is also concerned that setting compensation limits could put the country on the road to serfdom. "This is just a symptom of what happens when the government intervenes and we start controlling all aspects of the economy. This is just the first piece," said Sen. Jim DeMint (R-SC). "If you accept the fact that the government should be setting pay scales in America, then it's hard not to go after these exorbitant salaries. But I think it's a sad day in America when the government starts setting pay, no matter how outlandish they are."

"What are we going to do next?" wondered Martinez. "Tell a company if they get TARP money where there offices should be? They should be renting maybe from an abandoned federal building?"

Minority Leader Mitch McConnell (R-KY) and and Sen. John McCain (R-AZ) may have had the savviest responses to the tricky political question. McConnell didn't acknowledge that he'd been asked the query; he walked on to the Senate floor instead of answering. McCain declined to comment.

/snip

See? the Republicans were warning us that capping executive compensation would put the country on the road to serfdom.

[Wildewolfe]

1. Some are waking up

... to the definition of polical suicide

[Median Democrat]

6. I Think The Media Is Giving Them A Free Pass - No One Is Point Out...

To the various Republicans expressing outrage over the payment of bonuses that they were calling such caps socialistic just a month ago. It is complete radio silence a fairly clear example of Republican hypocrisy.

[zbdent]

2. but they had no problem attacking the salaries and wages

of the working, non-millionaire schmoes of the auto industry ...

[TahitiNut]

3. Look at all the House Republicans who voted for the largest income tax rate increase in history!!

Somebody alert Grover Norquist. :evilgrin:

[northernlights]

4. if they were the ones receiving the bonuses

they'd sing a different tune.

As it is, political expediency rules.

[DBoon]

5. No, they have always been in favor of caps

just like Oceania has always been at war with Eurasia