Business as Usual...Or Not?

Text Size : [+] | [-]

I have mixed feelings on whether companies who take bailout money should now be held to a different standard. Wells Fargo has now been forced, through political pressure, to cancel a corporate retreat. My first reaction is that any company who takes corporate money should be more frugal and responsible. But on second thought -- whose standard of frugality and responsibility should we employ? Corporations are not supposed to be run the same way government is -- and thank God for that. Indeed, the fact that government is so hamstrung by its democratic nature is supposed to result in fewer meddling in economic affairs. Unfortunately, tenacity got the better of us there.

Wells Fargo's tradition of holding retreats was one way that it cultivated better performance from its most valued employees. In other words, these kinds of decisions to boost morale and productivity are how successful companies are more efficient and effective than, say, government workers.

Corporations who took government money should be ashamed of themselves, and I will do what I can to withdraw my support from them. But we should refuse to begin acting as though they are answerable to us in the same way our elected officials are. This side-effect of the bailout will more surely lead to socialism if we don't.

UPDATE: Obama Plans to Cap Executive Pay for Government-Assisted Financial Institutions. In other words, so long, Citigroup, hello Federal Department of Citigroup.

Post a Comment