Republicans on Executive Pay Caps…and Why They’re Wrong

“What executives have done is troubling, but it’s equally troubling to have government telling shareholders how much they can pay the executives,” said Sen. Mel Martinez (R-FL).

Sen. James Ihofe (R-OK) said that he is “one of the chief defenders of Obama on the Republican side” for the president’s efforts to reach across the aisle. But, said Inhofe, “as I was listening to him make those statements I thought, is this still America? Do we really tell people how to run [a business], and who to pay and how much to pay?”

These quotes come from an article in the Huffington Post today. Click here to read it. 

To put it mildly, I am appalled. I agree that no one should be able to tell someone how to run their business. However, when you can’t run your business and need government money to stay afloat, then you should expect some terms and conditions. When I got a loan for my car, the bank required that I get full insurance on the car because they basically own it while I’m paying it off. Should I balk at this? The government is basically owning these financial firms for the time being because they couldn’t stay afloat on their own. So while the government is in charge, they have the right to call the shots on how the company is run. Don’t like it? Then don’t take government money. If you’ve put your company in a situation in which you’re forced to take government money, that’s your problem, not the government’s, and not mine.