Easing into exec-pay limits

posted at 9:28 am on June 12, 2009 by Ed Morrissey

The office of the Obama administration’s Pay Czar released the long-dreaded new regulations on executive compensation, and Wall Street breathed a sigh of relief.  Kenneth Feinberg didn’t go nearly as far as some had feared, and except for strict limits on pay for seven specific TARP recipients, more or less left the status quo in place.  That, however, is just the opening round:

Corporate executives breathed a sigh of relief Thursday after examining the fine print on broad new executive compensation rules and proposals put forth by the Obama administration.

While the White House’s new so-called special master for compensation, prominent Washington lawyer Kenneth R. Feinberg, has been given unprecedented powers to set pay at seven of the most troubled firms, the plan that was laid out Wednesday largely maintains the status quo for compensation practices at all other publicly traded companies, including hundreds that are receiving taxpayer assistance. In addition, the administration got rid of a previously announced $500,000 salary cap at financial firms that in the future take the kind of exceptional assistance that firms such as Citigroup and Bank of America have received.

“Our people kind of thought it was a non-event,” one executive of a large bank said. “There’s nothing in there that’s radical. It’s not like the horrible and unethical action from Congress where they were putting artificial caps on pay or trying to steal back bonuses. . . . I don’t think there are worries about it on Wall Street.”

Feinberg and the Obama administration eliminated “gross-ups”, the practice of firms to reimburse their top execs for the state and federal tax on their incomes.  Even some of the groups protesting the idea of a Pay Czar didn’t mind that change.  Most people would agree that everyone should pay their own taxes, after all, and the practice of “gross-ups” is hard to defend.

Of course, one also has to remember that the most famous of gross-up recipients was Feinberg’s boss, Tim Geithner.  He got reimbursed by the IMF for his federal taxes, which he never bothered to pay — not until he got picked by Obama to run Treasury.  If Obama and his administration really found this practice objectionable, why did he pick Geithner to run Treasury in the first place?

Wall Street may feel relief now, but that doesn’t mean they should get complacent.  Feinberg might be benign, but he also could be just getting started.  It makes good political sense to ease into pay restrictions and to tighten the leash slowly.  The issue will drop off of the media’s radar, but Feinberg and Obama can get the control they want over executive pay in due course.  The federal government rarely fails to fully use power it seizes for itself, and the Obama administration has seized a lion’s share of it already.  Benevolent czars were still czars, and all of them became despots.

Update: Business groups are wondering why Obama won’t limit executive pay at the unions:

Business groups are daring President Obama to impose pay caps on labor union bosses in light of indications the White House will limit how much corporate executives can be paid.

Mr. Obama has argued that “corporate greed” has contributed to the economic crisis and appointed a “compensation czar” to review executive pay for several companies receiving taxpayer bailout money. Now White House officials have told the press that legislation should be enacted to limit executive pay in private companies through nonbinding shareholder votes.

The Workforce Fairness Institute, which has lobbied heavily for the defeat of the Employee Free Choice Act, which would ease organization rules for unions, argues that labor officials have acted just as poorly as the “greedy corporate executives” who the president has blamed for the economic downturn. The group points to a 2008 Hudson Institute study that suggests unions have short-changed benefits for their rank and file in favor of generous executive compensation packages and to pad the coffers of their political allies, who are mostly Democrats, as evidence.

Add to this the whopping bailouts for unions in the way the government and its 31-year-old clerks handled the GM and Chrysler bankruptcies, and they have a case.  And hey, both unions and Wall Street execs were big contributors to Obama as well.  I guess the latter group is just discovering which of the two are indispensable to Obama, and which can get thrown under the bus.

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Comment pages: 1 2

Kenneth Feinberg didn’t go nearly as far as some had feared

The point most people miss is: “This should not be happening at all”.

Tommy_G on June 12, 2009 at 9:30 AM

Corporate executives breathed a sigh of relief Thursday after examining the fine print on broad new executive compensation rules and proposals put forth by the Obama administration

…..

My God, do people understand what a FRIGHTENING statement that is?

artist on June 12, 2009 at 9:31 AM

How about we limit the pay of all Medicare employees until they fix that fraud ridden broken system. After they fix it, we could use it for a model for reform.

tarpon on June 12, 2009 at 9:32 AM

To be perfectly honest, I’m coming to look forward to the daily pissing of citizens off by Obama. He’s only getting closer and closer to being removed.

The only thing that really scares me at this point is the universal health care, and I plan on saving my resistance for that. We can always eliminate the pay caps later, after he’s gone. :)

DrRansom on June 12, 2009 at 9:32 AM

“Our people kind of thought it was a non-event,” one executive of a large bank said. “There’s nothing in there that’s radical.

……

What a colossal dumbass.

artist on June 12, 2009 at 9:32 AM

Obama sets limits on pay (unconstitutional) through a Pay Czar who is not overseen by Congress (unconstitutional) and they call this a non-event.

Daggett on June 12, 2009 at 9:32 AM

Silly business groups… don’t they realize that this has nothing to do with “fairness” or what’s right for America? It’s all about political payback.

BPD on June 12, 2009 at 9:32 AM

I think I’m gonna gross-up.

forest on June 12, 2009 at 9:32 AM

Wall Street may feel relief now, but that doesn’t mean they should get complacent.

Shouldn’t get complacent???? Anybody who isn’t a frothing socialist should be outraged at the very idea of a “pay czar”!! What in h8ll is going on in America?

ProfessorMiao on June 12, 2009 at 9:33 AM

To be perfectly honest, I’m coming to look forward to the daily pissing of citizens off by Obama.

I’m sorry, that line should read either “the daily pissing off of citizens” or “the daily pissing on of citizens”. I couldn’t decide which as I wrote it, and that’s what happened.

DrRansom on June 12, 2009 at 9:33 AM

It’s all about political payback.

BPD on June 12, 2009 at 9:32 AM

And control.

An unprecedented power grab.

This is SCARY stuff.

artist on June 12, 2009 at 9:34 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

The American dream is now having the government do everything for you. What could possibly be wrong with that?!?!?

ProfessorMiao on June 12, 2009 at 9:36 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

You have to understand how many people do not have any clue what is happening, or have no clue what any of it means. Then, of course, there is the fact that most polls are grossly inaccurate – or can be spun, so to speak.

DrRansom on June 12, 2009 at 9:36 AM

This proliferation of czars has got to be stopped.

The GOP needs to grow some balls here and introduce legislation into Congress that requires that these appointments require confirmation. Surely there are enough democrats in Congress who are upset about all these czars if for no other reason than it’s stepping on their own power.

Also, it’s about damn time that Obama’s illegal dictatorial power grabs be challenged in the courts. I believe what he did with the banks and the car companies definitely rises to the level of impeachable offenses.

wildcat84 on June 12, 2009 at 9:36 AM

Wake up America!!!
by Pam Geller
I am a student of history. Professionally, I have written 15 books in six languages, and have studied history all my life. I think there is something monumentally large afoot, and I do not believe it is just a banking crisis, or a mortgage crisis, or a credit crisis. Yes, these exist but they are merely single facets on a very large gemstone that is only now coming into a sharper focus..

Something of historic proportions is happening. I can sense it because I know how it feels, smells, what it looks like, and how people react to it.. Yes, a perfect storm may be brewing, but there is something happening within our country that has been evolving for about 10 – 15 years. The pace has dramatically quickened in the past two.

We demanded and then codified into law the requirement that our banks make massive loans to people whom we knew could never pay back? Why? We learned recently that the Federal Reserve, which has little or no real oversight by anyone, has “loaned” two trillion dollars (that is $2,000,000,000,000) over the past few months, but will not tell us to whom or why or disclose the terms. That is our money. Yours and mine. And that is three times the $700B we all argued about so strenuously just this past September.

Who has this money? Why do they have it? Why are the terms unavailable to us? Who asked for it? Who authorized it? I thought this was a government of “We the People,” who loaned our powers to our elected leaders.. Apparently not..

We have spent two or more decades intentionally de-industrializing our economy. Why?

We have intentionally dumbed down our schools, ignored our history, and no longer teach our founding documents, why we are exceptional, and why we are worth preserving. Students by and large cannot write, think critically, read, or articulate. Parents are not revolting, teachers are not picketing, school boards continue to back mediocrity.. Why?

We have now established the precedent of protesting every close election (now violently in California over a proposition that is so controversial that it wants marriage to remain between one man and one woman. Did you ever think such a thing possible just a decade ago?). We have corrupted our sacred political process by allowing unelected judges to write laws that radically change our way of life, and then mainstream Marxist groups like ACORN and others to turn our voting system into a banana republic. To what purpose?

Now our mortgage industry is collapsing, housing prices are in free fall, major industries are failing, our banking system is on the verge of collapse, Social Security is nearly bankrupt, as is Medicare and our entire government. Our education system is worse than a joke (I teach college and know precisely what I am talking about.) The list is staggering in its length, breadth, and depth. It is potentially 1929 x 10. And we are at war with an enemy we cannot name for fear of offending people of the same religion who cannot wait to slit the throats of your children if they have the opportunity to do so.

And now we have elected a man no one knows anything about, who has never run so much as a Dairy Queen, let alone a town as big as Wasilla, Alaska. All of his associations and alliances are with real radicals in their chosen fields of employment, and everything we learn about him, drip by drip, is unsettling if not downright scary (Surely you have heard him speak about his idea to create and fund a mandatory civilian defense force stronger than our military for use inside our borders? No? Oh, of course. The media would never play that for you over and over and then demand he answer it. Sarah Palin’s pregnant daughter and $150,000 wardrobe is more important.)

Mr. Obama’s winning platform can be boiled down to one word: Change…radical change Why?

I have never been so afraid for my country and for my children as I am now. This man campaigned on bringing people together, something he has never, ever done in his professional life. In my assessment, Obama will divide us along philosophical lines, push us apart, and then try to realign the pieces into a new and different power structure. Change is indeed coming And when it comes, you will never see the same nation again.

And that is only the beginning.

I thought I would never be able to experience what the ordinary, moral German felt in the mid-1930s. In those times, the savior was a former smooth-talking rabble-rouser from the streets, about whom the average German knew next to nothing. What they did know was that he was associated with groups that shouted, shoved, and pushed around people with whom they disagreed; he edged his way onto the political stage through great oratory and promises. Economic times were tough, people were losing jobs, and he was a great speaker. And he smiled and waved a lot. And people, even newspapers, were afraid to speak out for fear that his “brown shirts” would bully them into submission.

And then he was duly elected to office, with a full-throttled economic crisis at hand [the Great Depression]. Slowly but surely he seized the controls of government power, department by department, person by person, bureaucracy by bureaucracy. The kids joined a Youth Movement in his name, where they were taught what to think. How did he get the people on his side? He did it promising jobs to the jobless, money to the moneyless, and goodies for the military-industrial complex. He did it by indoctrinating the children, advocating gun control, health care for all, better wages, better jobs, and promising to re-instill pride once again in the country, across Europe, and across the world.

He did it with a compliant media – Did you know that? And he did this all in the name of justice and…change. And the people surely got what they voted for. (Look it up if you think I am exaggerating.) Read your history books. Many people objected in 1933 and were shouted down, called names, laughed at, and made fun of. When Winston Churchillpointed out the obvious in the late 1930s while seated in the House of Lords in England (he was not yet Prime Minister), he was booed into his seat and called a crazy troublemaker. He was right, though.

Don’t forget that Germany was the most educated, cultured country in Europe. It was full of music, art, museums, hospitals, laboratories, and universities. And in less than six years – a shorter time span than just two terms of the U. S.. presidency – it was rounding up its own citizens, killing others, abrogating its laws, turning children against parents, and neighbors against neighbors. All with the best of intentions, of course. The road to Hell is paved with them.

As a practical thinker, one not overly prone to emotional decisions, I have a choice: I can either believe what the objective pieces of evidence tell me (even if they make me cringe with disgust); I can believe what history is shouting to me from across the chasm of seven decades; or I can hope I am wrong, close my eyes, have another latte and ignore what is transpiring around me.

Some people scoff at me; others laugh or think I am foolish, naive, or both. Perhaps I am. But I have never been afraid to look people in the eye and tell them exactly what I believe – and why I believe it. I pray I am wrong. But, I do not think I am.

reshas1 on June 12, 2009 at 9:36 AM

…the plan that was laid out Wednesday largely maintains the status quo for compensation practices at all other publicly traded companies, including hundreds that are receiving taxpayer assistance.

So, the federal government is just going to pick and choose who needs punishment instead of making the rules the same for all the companies who have taken federal money?

That doesn’t sound fair. It doesn’t sound like a level playing field. It doesn’t sound like the “law” is being applied equally.

It does sound like some takers of federal money are more equal than others.

myrenovations on June 12, 2009 at 9:37 AM

Kenneth Feinberg didn’t go nearly as far as some had feared

The point most people miss is: “This should not be happening at all”.

Tommy_G on June 12, 2009 at 9:30 AM

Exactly. Of course the Obama Autocracy will start off “soft” and “mild”. Right now it’s all about getting the thin end of the wedges in place so that later on the sledgehammer can slam the thick end through.

Currently the Obama dictatorship is what you’d call a “soft” tyranny. There are no fences, barbed wire, machine guns or tanks being used. But they will be, mark my words. Those come out when the popularity ratings fall, which they certainly will before long.

wildcat84 on June 12, 2009 at 9:39 AM

How long before paying a tax rate less than 100% is redefined as “public assistance” for the purposes of putting control of a company into the hands of this president?

MarkTheGreat on June 12, 2009 at 9:39 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

For some people the “American dream” is to see successful people punished. And Obama taps right into that. When Obama starts dipping into those peoples pocketbooks then you might see a rebellion, if they have not been throughly Obamaboarded.

izoneguy on June 12, 2009 at 9:40 AM

The downside of the Obama policies are pretty evident … Loss of individual liberty, massive inflation and crushing debt for the next milinia, etc, etc, yada, yada …

But …

The upside …

The next CONSERVATIVE PRESIDENT will be hailed as a GODESS with a GOLDEN FINGER because she’ll overturn all this crap – which will immediately supercharge the economy by freeing the Capitalists from the chains that Obama is enslaving them in. This will have the effect of making President Sarah Palin look more like a genious than she really is.

HondaV65 on June 12, 2009 at 9:40 AM

I could understand “gross ups” on state income taxes, if your job requires you to move from a low tax state to a high tax state. Federal “gross ups” might be justifiable if you had to move from a lower tax country to the US.

MarkTheGreat on June 12, 2009 at 9:41 AM

Business groups are wondering why Obama won’t limit executive pay at the unions:

I laugh…

Skandia Recluse on June 12, 2009 at 9:41 AM

Shouldn’t get complacent???? Anybody who isn’t a frothing socialist should be outraged at the very idea of a “pay czar”!! What in h8ll is going on in America?

ProfessorMiao on June 12, 2009 at 9:33 AM

I wonder if any of the geniuses in the Democrat party have bothered to realize that by capping what the “rich” can earn they aren’t going to be able to tax that to death?

This whole thing is just screaming for a lawsuit. What ever happened to equality under the law?

wildcat84 on June 12, 2009 at 9:41 AM

Why are they breathing a sigh of relief? Obama hasn’t been true to any of his own words. Any denial of goals in this direction are frightening as they are confirmation of the real truth.

drjohn on June 12, 2009 at 9:41 AM

The point most people miss is: “This should not be happening at all”.

Tommy_G on June 12, 2009 at 9:30 AM

+ infinity

SouthernGent on June 12, 2009 at 9:42 AM

“Our people kind of thought it was a non-event,” one executive of a large bank said. “There’s nothing in there that’s radical.

Translation.

I didn’t get hit.

MarkTheGreat on June 12, 2009 at 9:42 AM

Union greed is OK with Obama Hussein. It’s that corporate greed that needs to be kept in check.

Why just doesn’t he say what it really is? Support his socialist regime, or be punished.

Hening on June 12, 2009 at 9:43 AM

For some people the “American dream” is to see successful people punished. And Obama taps right into that. When Obama starts dipping into those peoples pocketbooks then you might see a rebellion, if they have not been throughly Obamaboarded.

izoneguy on June 12, 2009 at 9:40 AM

Yep, the Democrat party has been demonizing achievers for generations now. Obama just happened to be the beneficiary just at the time that movement has apparently reached critical mass.

wildcat84 on June 12, 2009 at 9:43 AM

My God, do people understand what a FRIGHTENING statement that is?

artist on June 12, 2009 at 9:31 AM

The fact that they don’t is even more frightening. Taking a second look at a move to Panama.

zeebeach on June 12, 2009 at 9:43 AM

This is insane! I can’t believe this is happening in our country. Are Americans so apathetic and cluless that they will let this psycho get away with this???

golfballs03 on June 12, 2009 at 9:43 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

What we are experiencing is the typical “Love the sinner, hate the sin” syndrome.

SouthernGent on June 12, 2009 at 9:44 AM

Why are they breathing a sigh of relief? Obama hasn’t been true to any of his own words. Any denial of goals in this direction are frightening as they are confirmation of the real truth.

drjohn on June 12, 2009 at 9:41 AM

This.

Everything Obama says, every promise he makes has an expiration date.

Obama is like Darth Vader in this sense, at some point he will “alter the deal”… and you better pray (probably to Mecca) that he doesn’t alter it any further”.

wildcat84 on June 12, 2009 at 9:45 AM

Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

As long as he limits himself to scr#wing over people that the populists and liberals don’t like (anyone who makes a lot of money), Obama will remain popular.

Watch out for when the press starts to demonize a new group of, they will be the ones Obama destroys next. With full throated approval from the mrymidons.

“First they came for the Jews. I wasn’t a Jew, so I said nothing …”

MarkTheGreat on June 12, 2009 at 9:46 AM

My husband reminded me yesterday of when Jimmy Carter was President….. there was a pay freeze put in place at the hospital where he worked. History repeats itself, but on steroids this time. We have to stop this man, or whatever he is.

suzyk on June 12, 2009 at 9:46 AM

The GOP needs to grow some balls here
wildcat84 on June 12, 2009 at 9:36 AM

That won’t happen until we get rid of the insiders and squishes, who are more interested in preserving their access to power, then they are with the interests of the country.

MarkTheGreat on June 12, 2009 at 9:47 AM

Taking a second look at a move to Panama.

zeebeach on June 12, 2009 at 9:43 AM

I prefer Costa Rica!

But it is less expensive in Panama and if you’re a pencianado (retiree), they offer HUGE discounts and tax breaks on EVERYTHING.

No kidding. And they use the dollar too.

artist on June 12, 2009 at 9:48 AM

When is the Right going to step up and speak out that much of what Nobama is doing is very likely unconstitutional? It had better be done before the country is lost to the “Progressives.”

GFW on June 12, 2009 at 9:48 AM

Dear Senator,

My stinky employer gave me a lousy .25 cent hourly raise and tried to tell me it was a $520 yearly raise. I require at least twelve times that amount and unless I receive that I will do twelve times less work. My children will suffer unless you straighten out this SOB.

Sincerely,
Workerbee #7873838884

Limerick on June 12, 2009 at 9:49 AM

The fact that they don’t is even more frightening. Taking a second look at a move to Panama.

zeebeach on June 12, 2009 at 9:43 AM

The question is, is there an English speaking country out there that isn’t already socialist that has a demand for top notch IT skills?

This is rapidly becoming “no longer America”. I refuse to live in a dictatorial regeime. If it’s not voted out, I will either leave it, or rebel against it…

I’m wondering at this point if after 4-8 years of this if this machine Obama is creating CAN be dismantled at the ballot box, no matter how people vote? He has ACORN which is getting billions which they will use to keep him in power… He is going to manipulate the census to punish states that didn’t vote for him.

As much as I DONT want to contemplate it, I strongly feel that if this continues unchecked there will come a time where there might be armed rebellion against the government.

I don’t see every part of this country consenting to be marched into a socialist dictatorship without a fight.

And that will be unfortunate if it goes that far. We got lucky once, George Washington (the only man in history to turn down a crown and total power after leading a successful revolt to instead set up a TRUE Republic) so far has only come around once.

wildcat84 on June 12, 2009 at 9:51 AM

One half of me is hopeful in that Obama is systematically pissing off a truckload of important folks for the next election – business leaders, banks, car buyers, GM and chrysler workers, radical libs who hate him for not prosecuting Bush, healthcare workers/owners.

The other half is in utter dismay that we are unable to do anything about his systematic march towards socialism.

Thunderstorm129 on June 12, 2009 at 9:51 AM

The Ohio teacher’s and police unions already got thrown under Obama’s bus in favor of the UAW, when the Supreme Court allowed destruction of American contract law by the subjugation of the Ohio unions’ pension fund claims over the UAW’s claims in Chrysler’s bankruptcy. Pick a winner, any winner! Obama is HERE! (Mussolini applauds loudly from his front row seat in Hell)

bradley11 on June 12, 2009 at 9:51 AM

Maybe movies would be cheaper if actors didn’t get 10′s of millions per picture.

We are entitled to cheap movies aren’t we?

/sarc

MarkTheGreat on June 12, 2009 at 9:52 AM

Corporate executives breathed a sigh of relief Thursday after examining the fine print on broad new executive compensation rules and proposals put forth by the Obama administration.

This is exactly how tyrants rule.

Expect the worst from those who threaten you… and feel relief at only losing some of your rights….

Repeat…. rinse… repeat…. freedoms lost!

katy on June 12, 2009 at 9:53 AM

For anyone interested in the difference, look up the meaning of COMMUNISM, SOCIALISM and FASCISM. We’re going down the Fascism road more than any other under Obama and the Democrats. And the road ain’t yellow or made of brick.

bradley11 on June 12, 2009 at 9:53 AM

One half of me is hopeful in that Obama is systematically pissing off a truckload of important folks for the next election – business leaders, banks, car buyers, GM and chrysler workers, radical libs who hate him for not prosecuting Bush, healthcare workers/owners.

The other half is in utter dismay that we are unable to do anything about his systematic march towards socialism.

Thunderstorm129 on June 12, 2009 at 9:51 AM

Producers are a minority yet produce the majority of the prosperity. The parasites are the majority yet consume most of that prosperity. The producers are powerful only by virtue of what they have achieved and the production they control.

What Obama is doing is taking away that power by confiscating what they earned and seizing control of their production (see: banks, auto industry), so they pose no threat to him.

wildcat84 on June 12, 2009 at 9:54 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

The government controlled media (that is, everyone but FOX) won’t even report this stuff. If people knew half of what was going on, Obama’s ratings would be in negative numbers.

Daggett on June 12, 2009 at 9:54 AM

I heard a radio ad for CardCheck last week. How misleading!

Blake on June 12, 2009 at 9:56 AM

Can’t post a link to CNBC. Kudlow had a good segment last night about how much each of the Czars contributed to Obama’s campaign. Looks very much like pay-to-play instead of paygo.

joedoe on June 12, 2009 at 9:56 AM

We are all in the same lion’s den. Some are hoping to be eaten last.

SKYFOX on June 12, 2009 at 9:58 AM

Workers unite!

The big problem here is that the execs are outnumbered, so their day will come.

There are many Obama voter-types who would love to see execs taken down a peg or two.

I remember some poll where people actually stated they would be happy to lose some of their own income, if the so-called corporate fat-cats lost a big chunk of theirs.

We are entitled to cheap movies aren’t we?

Darn-tooting! Heh. The same could apply to music, pro sports, and dare I say, overpaid lecturers and professors.

reaganaut on June 12, 2009 at 10:00 AM

One half of me is hopeful in that Obama is systematically pissing off a truckload of important folks for the next election – business leaders, banks, car buyers, GM and chrysler workers, radical libs who hate him for not prosecuting Bush, healthcare workers/owners.

The other half is in utter dismay that we are unable to do anything about his systematic march towards socialism.

Thunderstorm129 on June 12, 2009 at 9:51 AM

Producers are a minority yet produce the majority of the prosperity. The parasites are the majority yet consume most of that prosperity. The producers are powerful only by virtue of what they have achieved and the production they control.

What Obama is doing is taking away that power by confiscating what they earned and seizing control of their production (see: banks, auto industry), so they pose no threat to him.

wildcat84 on June 12, 2009 at 9:54 AM

Meaning by controlling the industry, you control the worker. But does the worker still have the power to vote? I say yes – until the union says vote this way or lose your job. But even then, those votes are still sacred, unlike what they want done in card check. So I can see a revolt brewing amongst those that probably voted Obama in the first place. He’s been as bad for them as he has been for Republicans.

Thunderstorm129 on June 12, 2009 at 10:00 AM

Reshas 1, I hope you are wrong but I`m afraid your not. Too many people are burying their heads in the sand because they don`t want to face the ugly reality.It seems to be open season on Jews ,the Military, private business,taxpayers, basically anyone who disagrees with the insanity. If they stay on this current path it can only end badly.

LSUMama on June 12, 2009 at 10:03 AM

Just wait until they introduce “card check” elections for Congress and the Presidency.

Report to your nearest union hall or ACORN office to fill out your card every 2/4 years. Pay no attention to the black panther guys standing by you with clubs, they are just there to “help” you.

wildcat84 on June 12, 2009 at 10:03 AM

If anyone of these idiots votes for this power monger again, they deserve anything and everything.

msmveritas on June 12, 2009 at 10:03 AM

This hyper-active Administration will be allowed to get away with murder as long as the MSM keeps cover…
This is why we need web sites like HA to keep pushing for that tipping point.

mjbrooks3 on June 12, 2009 at 10:06 AM

Reshas 1, I hope you are wrong but I`m afraid your not. Too many people are burying their heads in the sand because they don`t want to face the ugly reality.It seems to be open season on Jews ,the Military, private business,taxpayers, basically anyone who disagrees with the insanity. If they stay on this current path it can only end badly.

LSUMama on June 12, 2009 at 10:03 AM

It will end in poverty. Except there will be plenty of dijon mustard and Kobe beef in the Obama Palace (formerly known as the White House), make no mistake about that.

You can’t punish producers without destroying what they produce. Parasites will consume but they will not produce. Once things reach a critical mass the producers that Obama hasn’t gotten to yet for forced government takeover will have given up and “gone Galt” because we will pass a point where it will be more profitable to NOT produce.

wildcat84 on June 12, 2009 at 10:06 AM

If anyone of these idiots votes for this power monger again, they deserve anything and everything.

msmveritas on June 12, 2009 at 10:03 AM

In the privacy of the voting booth, they may not vote for him.

But I’m pretty sure they will still give him campaign donations.

myrenovations on June 12, 2009 at 10:07 AM

don’t worry about pay…soon most of us will be worried about even having a job!

right4life on June 12, 2009 at 10:08 AM

Can’t post a link to CNBC. Kudlow had a good segment last night about how much each of the Czars contributed to Obama’s campaign. Looks very much like pay-to-play instead of paygo.

joedoe on June 12, 2009 at 9:56 AM

Bingo!

http://apnews.myway.com/article/20090612/D98OTD380.html

katy on June 12, 2009 at 10:09 AM

Playing the “just the tip” game

CMonster on June 12, 2009 at 10:09 AM

How about limiting salaries in sports and entertainment, too?

behiker on June 12, 2009 at 10:10 AM

How about limiting salaries in sports and entertainment, too?

behiker on June 12, 2009 at 10:10 AM

Ironically, capitalism will do that to them. With whole industries ruined and 25% unemployment, who’s going to buy the tickets? With no one buying products, who’s going to be the sponsors and advertisers?

This is the sort of thing that the “Hollywood Intellectual” mind just isn’t capable of grasping.

Not to worry, I’m sure Obama will commission the film studios to produce many “New Patriotism” themed movies for him.

wildcat84 on June 12, 2009 at 10:13 AM

Apparently, the Obama Administration has no problem with this:

April 27 2007: 11:18 AM EDT
NEW YORK (CNNMoney.com) — AT&T Inc. Chief Executive Edward Whitacre will be given one of the highest-paying retirement packages in 2007, weighing in at $158.5 million, a newspaper reported Friday.

According to a proxy filing with the Securities and Exchange Commission, Whitacre’s retirement package will include $24,000 in annual automobile benefits, $6,500 each year for “home security,” access to AT&T’s (Charts, Fortune 500) corporate jet for 10 hours a month and $25,000 to cover his country-club fees, The Wall Street Journal said.
Whitacre, who has been with the company for 43 years, and his family will also receive free health insurance for life, while AT&T will pay the taxes on most of the benefits. During his retirement, he will also be paid a little over $1 million for three years for work as a consultant.

An AT&T spokesman told the Journal that Whitacre’s pay and pension reflected his position as one of the longest-serving and most successful CEOs in corporate America.
“During his tenure as CEO, AT&T has outperformed its peers in delivering value to stockholders, and Mr. Whitacre has positioned the company to continue to create stockholder value for many years to come,” an AT&T spokesman told the Journal.

Hey, they can give him whatever they want and more power to them. But seems a wee bit hypocritical to place a man who represents what Obama loathes into the GM seat of power.

Mr_Magoo on June 12, 2009 at 10:14 AM

I’m all for limiting executive compensation, in some circumstances.

By my calculations, our president has earned nothing at all in his time in office and owes the country about $3 trillion.

I’ll not ask that he work it off though, since there is no earthly possibility of that happening.

I’ll be happy with his resignation effective today, along with his moving his household goods out of our White House by 6:00 p.m. tomorrow evening.

NoDonkey on June 12, 2009 at 10:15 AM

How about limiting salaries in sports and entertainment, too?

behiker on June 12, 2009 at 10:10 AM

How about limiting salaries for politicians?

By my calculations, the Democrat Congress hasn’t earned a dime this year and owes trillions. Worthless, corrupt, incompetent scumbags.

NoDonkey on June 12, 2009 at 10:16 AM

How about limiting salaries for politicians?

NoDonkey on June 12, 2009 at 10:16 AM

Eh, I don’t care about their salaries.

But I would like to get rid of their cushy pensions and benefits.

myrenovations on June 12, 2009 at 10:18 AM

Well, I’m really glad that the government bully at the bus stop decided to pick on Mikey instead of me. And it’s not that bad, he only took a nickel, not the whole dollar…

First they came for the bank execs, but I wasn’t a bank exec, so I didn’t complain…

Count me as complaining now. Loudly.

jdfister on June 12, 2009 at 10:20 AM

The GOP needs to grow some balls here
wildcat84 on June 12, 2009 at 9:36 AM

Do not place your children’s liberty on the shoulders of “false prophets”.

I have to admit – that after decades of voting for ONLY one party – the Republican pary – I was wrong.

When people are in dire straights – you learn something about them – things you never knew.

Now that the GOP is on the ropes – I’ve discovered the following …

1. They really ARE politicians after all. All those years of condemning the Democrats for putting their fingers in the wind to determine the direction of the political blow – that was ALL hypocrisy – the Republicans are just as bad about doing it – they’re doing it now.

2. All that talk about being the party of “Real Americans” and “Real American Values”? Hogwash. The GOP elite don’t care two cents for those of us who shop at Walmart. Sure, they want our votes – but they don’t want to LISTEN to us – we’re annoying to them. The NRSC doesn’t even trust Republican grassroots voters to make a good decision in Republican primaries – so John Cornyn and his ilk have learned a trick from the Iranian Ayatollahs – and they now TELL US which Republicans to vote for (a la Florida Senate race, a la Texas Governor race).

3. The party of American Values? Pfft! When did jumping on the bandwagon with Democrats to demonize AIG executives who were earning a legal living become an “American Value”?? When did joining liberals to demonize an Alaskan mother who made $150K dollars TOTAL with her husband in 2006 become an American Value??

4. They are spineless. Can’t even prounounce Colin Powell a “Democrat” – after he’s done nothing but contribute to the destruction of the party.

No … Republicans are false prophets and they aren’t up to the task. Let them fade into mediocrity. We need a new CONSERVATIVE party.

HondaV65 on June 12, 2009 at 10:20 AM

Eh, I don’t care about their salaries.

But I would like to get rid of their cushy pensions and benefits.

myrenovations on June 12, 2009 at 10:18 AM

How about just getting rid of each and every one of them, lock, stock and barrel?

Every Democrat in Washington should resign and be permanently exiled, for what they’ve done to this country.

NoDonkey on June 12, 2009 at 10:21 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

The media is still feeding them a line, and we have not really begun to pay for Obama’s grand scheme yet. Things have gotten bad, but the press tells us that hundreds of thousands more unemployed is just evidence that things are turning around. It will be a while before people begin to see past the spin and realize just what a mess we are in.

Tonus on June 12, 2009 at 10:25 AM

I will tell you one thing though – as much as it pains me to say it, what the democrats have done since the last year of Bush has been utterly amazing from a poly-sci standpoint. It’s like watching an unstoppable attack progress in a game of chess. The other side is overwhelmed at the audacity and cunning of their opponent. It’s almost frightening to think of the planning and execution put into this attack on America and conservatism so far.

Think about it. An inexperienced leader, subsidized by a culture of ‘cool’ folks who just want a man not named Bush in the white house (his blackness is just a bonus, mind you) is thrust into the White House where he proceeds to push the most liberal and radical agendas they have. His scorched-earth policies are fanned by the media, who is complicit in everything from getting him elected (Hillary sexism, McCain affairs, Palin is uneducated, etc.), to asking non-questions about his policies and covering nothing but his choice in burgers and his wife’s fashion-sense.
Add to that a illegal donation scheme left un-investigated, an army of “voter registrants” left unchecked, and the adoration of the Hollywood-types (Ron Howard, donning the Opie outfit one last time) and you have a storm of political strength not seen really since Reagan took office. The GOP was caught off guard and ill-prepared.

If I wasn’t a Republican, I would admire the efficient steam roller that just ran over my party.

Thunderstorm129 on June 12, 2009 at 10:26 AM

Every Democrat in Washington should resign and be permanently exiled, for what they’ve done to this country.

NoDonkey on June 12, 2009 at 10:21 AM

Lots of Republicans too.

myrenovations on June 12, 2009 at 10:28 AM

HondaV65 is right. Bush did quite a bit of spending. They should all go.

Reshas1, unfortunately I don’t think you are wrong either.

constitutionlady on June 12, 2009 at 10:29 AM

I can’t believe he would advocate such a socialist approach!!!

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=100613

allahallahoxenfree on June 12, 2009 at 10:45 AM

The business groups are breathing a sigh of relief, because this moves the target off of their activities to grow their business and yes, ahem – look for ways to make more money without oversight, like credit default swaps, pooled assets and other ways to build up their coffers under the radar.

While I dont disagre with many posters here as to the overall threat of Obama’s Czarapalooza – these folks have the green light to create more wealth – both legitimately and “shaky”.

Odie1941 on June 12, 2009 at 10:46 AM

This is just the first tug of the bit… to make sure the horse knows who is boss…

You don’t pull hard… you’re just letting the horse know its there… and to see if he’s gonna buck…

Then, you can yank on it later if ya need to.

Romeo13 on June 12, 2009 at 10:50 AM

Government, without a war powers act, has NO RIGHT to interfere in private business.

PERIOD.

END OF DISCUSSION.

If this means we push back and tear down Income tax altogether, so be it.

This is no longer a policy debate. This is out and out a fight for the rights and liberties for us, for ours, and for our future children.

Skywise on June 12, 2009 at 10:59 AM

If this means we push back and tear down Income tax altogether, so be it.

This is no longer a policy debate. This is out and out a fight for the rights and liberties for us, for ours, and for our future children.

Skywise on June 12, 2009 at 10:59 AM

AMEN http://www.fairtax.org

allahallahoxenfree on June 12, 2009 at 11:06 AM

Is anyone keeping count of how many Czars and Czarinas we have now?

redwhiteblue on June 12, 2009 at 11:17 AM

Is anyone keeping count of how many Czars and Czarinas we THEY have now?

redwhiteblue on June 12, 2009 at 11:21 AM

Is anyone keeping count of how many Czars and Czarinas we THEY have now?

redwhiteblue on June 12, 2009 at 11:21 AM

Over at the Contentions blog, there was a post yesterday with the czar count and what the czars cover.

myrenovations on June 12, 2009 at 11:25 AM

If Obama really wants to re-distribute the wealth….to those who are more deserving….Why doesn’t he get his “Hollyweird buddies” to pay up….I don’t understand how Tom Hanks, for example, works 3-4 months on a movie and commands salaries of 100′s of millions. The people that spend their twelve dollars to go see his movies, had to work sometimes 2 hours or more to make the money they are spending to go to the movies. Why is his time more valuable that theirs ? Hum…….seems unfair. How about if Obama spreads that wealth around.

How about Oprah! She spends an hour on TV, telling everyone how to be a better person each day. Maybe a more reasonable salary for her is called for. Is there some reason she is more valuable to society that Jane Doe who works 8 hours a day for minimum wage just to feed her child.

How about the NFL…..these guys get millions of dollars to ‘play a game’. Kids on ball fields playing the same game…get nothing. How is this fair ?

Why is it some people in this society are considered more valuable that others………..are we all not the same ?

OH THAT’S RIGHT, WE ARE NOT A COMMUNIST COUNTRY !

RUReadingthis on June 12, 2009 at 11:25 AM

“The proletariat is the undertaker of capitalism”

Just say it Barack… You came out of the closet on being a muslim, didn’t you?

Just say it…Go ahead… We all know…

DamnYankee on June 12, 2009 at 11:41 AM

RUReadingthis on June 12, 2009 at 11:25 AM

We must remember this…
You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people’s initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves.

Abraham Lincoln

redwhiteblue on June 12, 2009 at 11:43 AM

What’s frightening to me is how high Obama’s approval ratings still are. Do people not realize how he’s slowly killing the American dream? Or do they not care?

CityFish on June 12, 2009 at 9:34 AM

The personal bottom line. That is when people finally realize what is happening and buy-a-clue, if they have the change left in their pocket.

Obama has over-played his hand but most people won’t realize the personal impact until they are in the unemployment line, can’t afford to pay the monthly bills, or are paying $4.50 for a gallon of gas.

The poll numbers are indicating that part of the electorate is finally starting to wake up. The tsunami of outrage will be along shortly. I believe the White House now probably sees this coming. Their reaction will be very interesting.

Yoop on June 12, 2009 at 11:45 AM

A very populist move.

“Those damn rich people!”

We certainly don’t have to like them but these are the folks why by hard work, crookedness, or a combination thereof have amassed the capital to open businesses, build factories, invest heavily in other enterprises-in short, make it so the rest of us have jobs.

A necessary evil. Remember, they can’t take it with them anyway.

The government should do no more than to enforce laws concerning embezzling, lying about stock values and so on.

Dr. ZhivBlago on June 12, 2009 at 11:46 AM

The point most people miss is: “This should not be happening at all”.

Tommy_G on June 12, 2009 at 9:30 AM

I whole agree – every day Ogumbe grabs more power for himself, just like every despot dictator does.

MidWestFarmer on June 12, 2009 at 11:52 AM

wholeheartedly – stupid fingers

MidWestFarmer on June 12, 2009 at 11:53 AM

The point most people miss is: “This should not be happening at all”.

Tommy_G on June 12, 2009 at 9:30 AM

Exactly.

But if we going to take that path, let’s be sure to limit the pay of pols and bureaucrats, media celebs and execs, union bosses and bureaucrats, lawyers, athletes, education bureaucrats and teachers.

petefrt on June 12, 2009 at 11:54 AM

WeBarack Obama must remembershould learn this…
You cannot help the poor by destroying the rich.
You cannot strengthen the weak by weakening the strong.
You cannot bring about prosperity by discouraging thrift.
You cannot lift the wage earner up by pulling the wage payer down.
You cannot further the brotherhood of man by inciting class hatred.
You cannot build character and courage by taking away people’s initiative and independence.
You cannot help people permanently by doing for them, what they could and should do for themselves.

Abraham Lincoln

Fixed it!

redwhiteblue on June 12, 2009 at 12:01 PM

To: The Desk Of President Barack Obama
Oval Office/The White House
Washington D.C>

We the citizens of the United States, thru contemplative thought, and debate, have decided heretofore, that your salary will be limited to $100,000 a year, and not one dime more.

You will not recieve executive health care from here on out. You will not recieve bonuses, or free vacations, or date nights, courtesy of the tax payer. Any personal business, such as these will come solely from your earnings, of $100,000, and any other earnings, coming from employment outside of your duties as President of the United States.

You will not purchase any items,or make any changes of personal nature, with tax payer monies. You will live only off your earnings as an employee of the citizens of the United States.

Nothing personal dude, but morality knows no limitations, and we here by hold you to your own moral standards.

From:

The United States Citizens.

capejasmine on June 12, 2009 at 12:15 PM

Abraham Lincoln

redwhiteblue on June 12, 2009 at 11:43 AM

Is that really a Lincoln quote? If so, I have it incorrectly attributed on my blog. Crud.

Laura Ingraham called this an economic dictatorship yesterday. I think she’s right.

I’m sure the Union bosses will have their pay limited soon, right? Right?

NTWR on June 12, 2009 at 12:57 PM

Easing into exec-pay limits

BARRY SOETORO = HUGO CHAVEZ

WHERE’S THE BIRTH CERTIFICATE“?

byteshredder on June 12, 2009 at 1:57 PM

Whew! That quote is actually from William J.H. Boetcker, but is often attributed to Lincoln.

NTWR on June 12, 2009 at 2:02 PM

BARRY SOETORO = HUGO CHAVEZ

“WHERE’S THE BIRTH CERTIFICATE“?

byteshredder on June 12, 2009 at 1:57 PM

The birth certificate was sealed by order of the Governor of Hawaii, I believe shortly after Obama’s grandmothers demise.

Equal to Chavez? I’m betting ol Hugo is sitting back, amused, and somewhat jealous at how quickly Obama is thrusting our country into socialism.

capejasmine on June 12, 2009 at 2:11 PM

So, since a private contract between an employer and employee needs approval at the Federal level, what’s to keep all other private contracts from needing such approval?

“Based on a review of all contracts over $1M, we have found that your company doesn’t use enough unionized material and service suppliers. Accordingly, we forbid you to actually pay for any of the goods and services provided by X, Y, and Z.” — and to think, we’ve been worried about Card Check.

And since this approval comes after the fact, what’s the use of having a contract at all? It’s like, I don’t know, studying for a qualifying exam and placing well, and then having the exam thrown out because other people didn’t do as well as they wanted to….

cthulhu on June 12, 2009 at 3:46 PM

Whew! That quote is actually from William J.H. Boetcker, but is often attributed to Lincoln.

NTWR on June 12, 2009 at 2:02 PM

My bad…guess who needs Quote Verifier! Still will keep this quote going strong as it really speaks to the dangers we face now. Thanks for correction!

redwhiteblue on June 12, 2009 at 3:56 PM

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