Why not socialism for all in bad times?

When it was reported that $18.4B were paid in bonus by the New York based Investment banks who were recently bailed out by tax payer money, the recriminations were swift: Obama called the act “shameful” and Senator McCaskill, reported Kansas City Star, called Wall Street executives “idiots” and proposed limits on some of their salaries.  For all in politics who were enraged by the mind-numbing greed and psychotically selfish behavior of these “guardians” of our financial system, the shocking part was that there were equal number of highly influential people who were supporting the bonuses!

The two that stand out are former NYC Mayor Rudolph Giuliani and the legendary former GE CEO Jack Welch.

Jack Welch said on Charlie Rose (paraphrasing), “while it might sound horrible but you have to realize that these people did not chose to cure cancer, educate kids. These people chose to make money, Charlie. And if we do not pay them bonuses they will go to other investment banks because they all know each other.”

And equally loopy logic from the egotistical Mayor Giuliani, “If you somehow take that bonus out of the economy, it really will create unemployment,” Giuliani said on CNN. “It means less spending in restaurants, less spending in department stores, so everything has an impact.” 

Mr. Welch and Mr. Giuliani, let’s start with basics: bonus is given based upon performance. The more enriching to the company an individual’s performance is, the more the bonus payout for the person. If you have sunk $1 trillion in wealth, taken anywhere from $200 to $300 billion of real cash in compensation and bonuses in previous years all under, what is obvious now, false premise of having grown money and then turned around and asked $350 billion in tax payer money to save your lousy, wretched enterprise then you should not be allowed to spell the word bonus! You should be sick to your stomach everyday on behalf of wrecking free enterprise and should be asking forgiveness of every person you have fleeced in your career.

Secondly, you chose to make money so we should give it to you hand over fist for free? What kind of childish nonsense is this? The last I checked the real world, one had to produce something of value to get something back. Money, Mr. Welch, is the common currency we all deal in. Why then should the destroyers of wealth get more for just being closer to the lockers in the banks that hold the money? You are trying very hard and very poorly to justify a royalty that has lived for ages and is finally being exposed for what it is: criminals with no ethics and no regard for the future of the world. Criminals who have no idea what a social contract means. Criminals who have no idea how to create but are surely leeches and vultures who live off of others.

Thirdly, to think that there is a need to spend billions to preserve these “geniuses” is to be so negligent in understanding of the word genius. Geniuses invent, create and solve problems that others cannot comprehend but whenever there solution is put to test, it always proves itself to be right. I graduated from one of the most respected and hardest undergraduate engineering programs in the world and without fail, all my friends who took Finance or Commerce as their major could not hold a candle to my Science and Engineering class mates. Mr. Welch, do not, please do not, confuse scheming and Machiavellian minds for geniuses.

Fourthly, Mr. Giuliani, it is very hard to know where to start with you. Your logic obviously is that let the rich be rich so they can trickle down a few dollars to the waiters and the cabbies. But you seem to forget that the billions that have been given to these rich and corrupt are coming straight of the pockets of the waiters and cabbies in the form of taxes. So, why pray, can’t we give the $18.4 billion to the waiters and cabbies straight off to spend? Surely welfare dollars to the poor and middle class are more justified than to the rich and bumbling? Or have I got you all wrong?

 Lastly, and most discouragingly, despite all the initial righteous indignation from the politicians, the new administration is readying another stimulus package for the banks. That, in and of itself is not discouraging, but Mr. Krugman, columnist at New York Times writes in his article , Lemon Socialism, that the additional stimulus provides little to no return to tax payers if things go right and instead the executives and the stock holders will be all the more richer for it. If things go wrong, I believe, we will be funding the third stimulus package for the financial companies.

Additionally he asks, to quote, “Will there at least be limits on executive compensation, to prevent more of the rip-offs that have enraged the public? President Obama denounced Wall Street bonuses in his latest weekly address — but according to The Washington Post, “the administration is likely to refrain from imposing tougher restrictions on executive compensation at most firms receiving government aid” because “harsh limits could discourage some firms from asking for aid.” This suggests that Mr. Obama’s tough talk is just for show.”

So in closing, some food for thought:

1. How is this free enterprise? Or may be, I didn’t understand what free really meant (free for the enterprises!!)

2. How is this humane, just or fair?

3. When the majority suffers under capitalism and the rich minority gets socialistic benefits, why not social benefits for all in times of distress? We can revert to capitalism when things are good.


3 Responses

  1. Government should have stopped creating stimulus packages when these morons flew in a private jet from Detroit to DC to beg some money. Are these people oblivious to whats happening around? which makes me think that whether these people lack common sense or conscience??? its hard for me to digest Jack Welch’s comments though, i used to respect him as one of the best CEO’s..aah i guess his brain cells are dying along with his age. Citi wants to buy a new Jet..height of stupidity. Sure, people will one day get sick of capitalist fundamentalists and will accept any other option not just socialism

  2. The bailout should be: Nationalize, fix, privatize by public auction.

  3. […] Posts Poor IndiaWhy not socialism for all in bad times?Obama restricts Executive […]

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