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Originally Posted by ScottKuma
I'm of two minds on this:
1) How the hell is it the Government's right, even if they DO give money to these companies, to make demands on CEO compensation? Last time I checked, neither the Executive branch nor the Legislative branch aren't given any such powers in the Constitution! Let the marketplace will sort it out.
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How would the marketplace sort it out? What would be the end result?
Just for fun, let's say that the failed companies (all of them) go down like Enron, WorldCom, etc... The top executives having done nothing wrong in this case (because it was the slow down in the economy), would have made an additional $XX million dollars, and probably had paid themselves first. They would care a little bit, but at the same time, retirement wouldn't be a horrible option either.
But, what happens to all the employees of these companies? Can they form a new company from the ashes? Will there be enough loans to start this company? Would a foreign company with cheap labor and living standards provide the service?
The unemployment rate will go up, home prices will fall as people don't have enough savings to continue living in their homes (let alone buy a new home), more jobs will be lost in the smaller businesses around town, and pretty much what is going on in some places now. Politicians would lose their jobs because of the situation.