Libertarian Party blog: Obama discourages struggling banks from hiring qualified managers

Hoping to win favor for adding trillions of dollars in additional bailouts for banks to his already-struggling government expansion plan, President Barack Obama announced yesterday the imposition of salary caps on executives whose banks receive TARP funds.

In other words, if your bank is struggling and its failure could throw the economy deeper into turmoil, Barack Obama wants to make it even harder to hire the managers you need to stay in business.

So if you’re keeping score at home, Obama’s plan to create jobs is to 1) permanently inflate government spending, 2) impose billions of dollars in additional debt on future workers, 3) eventually repeal tax relief for employers and 4) impose salary caps on bank executives that ensure they will only hire less-qualified managers in a time of economic trouble.

Inciting class warfare and funneling taxpayer money to groups that supported your election doesn’t create jobs. Cutting taxes and hiring experienced business managers will.

No wonder independent voters are turning against the Obama plan in hordes.

Posted at by Donny Ferguson. Reposted to IPR by Paulie.

6 thoughts on “Libertarian Party blog: Obama discourages struggling banks from hiring qualified managers

  1. Jere Shocly**+ **

    Not much of a populist recruiting policy, siding with the “BANKSTERS” after they just robbed each of us ! I’m opposed to any bailouts, but if the fascists continue to hand it out I see no problem with handcuffing the GREEDY bastards with wage controls. It’s fascism anyway and until enough of us stand up, it will continue until society as we know it is long gone! Why should anyone in management make more than say 20X more than the janitor makes a year. They need to stop the GREED and create more jobs with that money!

    Listen for a minimum two hours a week over two months. Research as you listen. You will never think about politics the same again. or


  2. Leymann Feldenstein

    So if the banks are nationalized (which they essentially are already) and have become nothing more than branch offices of the US Treasury and Federal Reserve Bank, the LP position is that we (the taxpayers) should subsidise multi-million dollar salaries for the same folks who created these problems in the first place? If that is the case, then I assume the LP also supports paying comparable market-based salaries and benefits to Federal government executives as well. Using the LP Party’s own logic, if Bank executives should be paid millions of dollars, shouldn’t their Federal bosses and overseers be paid comparably as well? Does it make sense (from a free market perspective) to pay supervisors so much less than the people they are supposed to be supervising?

    Nice to see the Party of Principle stand up for taxpayer subsidies being used to feather the private nests of private bankers. Maybe the Party of Principle would like to see taxpayer bailout money used to finance corporate suites, jets and lavish trips as well as three-martini9 lunches.

    I think the Party of Principle needs to get its head out of the ideological sandbox and realize there are talented folks out there who, for reasonable compensation, are willing and capable of doing the job that needs to be done without having tons of money thrown at them.
    Just ask anybody who bought Chrysler stock back in the 1980s. Lee Iaccocca sold the Chrysler bailout to Congress and agreed to take one dollar of compensation in return. He turned the Company around and became a role model for corporate responsibility. If more CEOs had followed his example this country wouldn’t be in the mess we have today.

  3. Michael Seebeck

    Donny has it backwards, as usual.

    You don’t reward incompetence with multi-million dollar bonuses. Had these bankers been competent, the financial mess would never have happened, and their banks would not be in trouble.

    The salary cut is a string attached to the bailout. Donny should be lamenting the bailout, not the strings.

    As a matter of principle, those bankers should be given the same wage and benefit packages as their junior tellers, just so they can see how the front line lives.

  4. paulie cannoli Post author

    As Steve Trinward says on another thread…

    To call “Slapping salary caps on executives for struggling banks, preventing them from hiring experienced managers to stay in business” a screwup is absurd!

    If they are going to GIVE these assholes, who apparently can’t manage their businesses any better than I can, a handout from the taxpayers, they damned well better limit how much they can pay themselves or each other, out of that subsidy!

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