With the nationalization of banks, auto companies, and just about anything the government deems too big to fail, it isn’t far fetched to say that we’re on our way to a Swedish style, heavily mixed economy. That comparison just became so much more real as Congress is expected to pass a bill which would give them the power to dictate the pay and bonuses of employees at companies with more than $1 billion in assets.
This is intended to “discourage excessive risk taking” according to Barney Frank (does he forget his cronies at Fannie and Freddy?). It was along these same lines that Sweden recently banned bonuses at state run companies in March.
If Frank was serious about discouraging excessive risk taking, he and Congress would take a pay cut. An enormous one at that.
More on the Orwellian bill here.Published in