I'm getting a bit tired of all the hub-bub over AIG's bonuses. This is yet another case where the media and media-hungry politicians are jumping on the bandwagon of what they think the public wants to hear regarding something that really should have never been news in the first place.
The furor, of course, is over the $165 million in bonuses AIG is planning to pay out even though they have accepted taxpayer funding and are coming off some abysmal financial performance. $165 million seems like a huge amount of money when taken out of perspective. However, put in perspective, it represents only .10% of the $170 BILLION in taxpayer funds that have been sent their way. Let me repeat... POINT 1 PERCENT! This is the equivalent of someone who makes $100,000 having a meltdown over whether to spend $100.
With the frenzy of outrage, people lose track of the fact that the vast majority of those AIG'ers getting bonuses had very little to do with what is currently going on. They are regular people - not jetsetting partiers reveling in wasting taxpayer money - who depend on their bonuses to pay their bills and do their part to keep the economy going. And if AIG is ever going to get out of this mess, they need to somehow incent the best people they have to actually stick it out and not run for the hills. Best way to clear out the talent? Don't pay them bonuses.
Regardless of all this, I don't think I would be so peeved if it weren't for the hypocrisy of it all. I think most people have to realize that those in Congress played their own very significant parts in getting the country to where it is right now. Years of Congressional mismanagement and lack of regulation led us to this housing bubble that is at the heart of the nation's troubles. And yet, Congress is still due it's automatic annual pay increase.
How about pay-for-performance for the very people who would like to dictate Wall Street's pay? How about Congress' pay including bonuses for bringing positive change to the nation - and withholding those bonuses when targets are not met? How about eliminating automatic pay increases? I mean, with all that is going on, what argument could possibly be made that those in Congress deserve MORE compensation?
Because, when it all is said and done, the American taxpayers may have an 80% stake in AIG, but don't forget we have a 100% stake in Congress.
Somehow we have to get this nation out of the era of finger-pointing and grandstanding over what really amount to trivial issues and get the focus on taking the big steps that are needed to move us in the right direction.
Comments