Todd Weber's Random Thoughts

February 4, 2009

Obama limits executive pay, but socialism still on the way

Filed under: Politics — Tags: , , , , , — tkweber @ 11:10 am

I applaud President Obama’s action limiting to $500,000 the pay of executives of corporations receiving bailout money from the $700 billion Troubled Asset Relief Program (TARP).  I was against the bailout plan, but since it is done, and tax-payer dollars were used to keep these failing businesses afloat, then the government should have a say in how the money is spent.  Executives should not be rewarded for failure at public expense.

However, I’m still concerned about the government being so deeply involved in private business and the market.  Despite all the reassurances from the administration, I’m concerned that our nation continues to be led further into socialism.  If the new $850 billion Economic Stimulus Package, recently passed by the House and presently before the Senate, becomes law, it will be a gigantic leap in that direction.  Many are calling it the new New Deal, a repeat of FDR’s New Deal of the 1930s. What most fail to realize is that the old New Deal made the Great Depression much worse and of longer duration than it would have been if the government had kept it’s “benevolent hand” to itself.  I fear that the path being chosen by the Obama administration, like that of FDR, will make the present economic troubles much worse and last much longer.  What’s more, I fear that the only likely solution to such a situation may be the same as it was for FDR: another world war. 

Read about Obama’s recent action here: http://www.msnbc.msn.com/id/29003620 

I highly recommend this excellent book: The Forgotten Man, A New History of the Great Depression, by Amity Shlaes, New York: Harper Perennial (2007)

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