Friday, 6 February 2009

Mr. Bloomberg, shame on you!

Michael Bloomberg, the billionaire Mayor of NY, made the following remarks:

NY Mayor Bloomberg wary of bonus caps February 5, 2009

NEW YORK - Mayor Michael Bloomberg, a billionaire who got his start on Wall Street, sounds like he doesn't agree with President Obama's pay cap for top executives from companies that want bailouts.

Asked Thursday about the cap, Bloomberg would not directly answer. But he said he doesn't think the government should get involved in telling businesses how they should be run.

Bloomberg said he understands there are strings attached when companies accept government money. But he says the city relies on its tax base of wealthy workers and profitable companies.

Bloomberg says those bonuses may seem like a lot of money, but they trickle down into the economy and help everyone.

What Bloomberg said is absurd and outrageous...

1) It is not simply government intervening business operations. The government actually invested billions into these banks. It is protecting taxpayers' money instead. If you invest billions in a company, you would care how they use the money. It is not a question of intervention or not. Of course, I prefer the government doesn't own the banks in the first place, but the fact is it does own the banks now.

2) The argument of trickling down is absurd. If it is true, why just limited to paying those lucky guys who happened to work in banks that are rescued by the government? You should pay everyone in the town, and then spending will trickle down anyway or he believes bankers' spending is easier to trickle down?

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