Wednesday, March 25, 2009

Its AIG's Fault!

Americans have been outraged at the issuance of 160 million dollars in bonuses to AIG executives. It is sad that the American people are spending so much time,energy, and emotion on the 160 million dollars that tax payer money financed. I guess the fact that our government bailed out this institution with 160 billion dollars and no strings attached doesn't deserve the same time,energy, and emotion. Not that I agree with the irresponsible and unsound decision of AIG to issue these bonuses, but these bonuses were in a contract and the money had no strings attached. What is even more sad is the fact that Congress even had the dignity to issue an unconstitutional tax on the holders of these bonuses. What does this say about equality and trust in America? Where does it say in the Constitution that Congress can disregard contracts and issue specialized taxes whenever they want and on whoever they choose? The government claims that AIG employees don't deserve any bonus at all because they didn't do their job. Well for one that is a very broad statement. How do they know that each AIG employee that received a bonus didn't do their job? Secondly, if you feel that they should be taxed 90% on these bonuses because they didn't do their job, well than I suggest that each Congressman should take a pay cut as well. Bottom line is that all of this could have been avoided if we just let the market handle the situation. If we didn't bail out this institution with over 100 billion dollars of tax payer money, there would be no arguement on any of these issues because AIG would go bankrupt and they would get what they deserve. Imagine the money,time,energy, and emotion saved if we let the free market regulate. If you want to be outraged at anyone, you should be outraged at our government. It was our government and the Federal Reserve who created this entire mess and now we want to blame it on everyone else but them.

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