For weeks now, every media outlet has been railing against AIG for paying out bonuses to some of their employees. An easier issue to demagogue does not exist and everyone is on board with it.
The new CEO of AIG says the bonuses are part of their employment contracts. Now, because the government has given AIG billions of dollars to ‘bail them out,’ the administration feels that they have a right to intervene in the employee/employer relationship and pick the pocket of the employees, or ‘workers’ as Obama likes to refer to wage earners.
It was reported early on, but not since about a week or two ago, that the employment contracts like those being harangued by the media are normal for Wall Street traders. That they operate on a ‘low’ weekly salary, and the nut of their income comes in the form of a bonus arrangement based on whatever is well known in the industry and that these contracts were part of the terms of their employment.
If all the above is true, then it is easy to see how dangerous it is that the government is talking about interfering with that employee/employer relationship by voiding the contracts and not paying the ‘workers.’
It feeds the populist feeding frenzy of eating the rich. Only in a socialist state my fiends.