I keep hearing that government curtailing of bonuses and such will cause a talent drain in the bailed out companies. This is perplexing, given that the talent has had to be bailed out.
I think bonuses should be looked at like taxes, or labor, or raw materials, as an expense. That expense is built into the price of a good or service, and passed on to me or you. If the government owns a company, not in the Socialist socialism way, but Socialism in the laissez faire capitalist type of way then why shouldn’t expenses be cut at the top?
Update:Barney Frank just informed me that I was correct, the bailout so far has authorized only $350 billion, if the President certifies that another 100 billion is needed, which means that so far 700 billion really is 250 billion, and might explain why the traditional media are having trouble with bloggers and arithmetic.