Sunday, March 29, 2009

Why a Bailout is Bad, and Why CEOs Shouldn't Accept One

The GM CEO has resigned at the behest of the Obama administration:

How dumb do these folks have to be? Maybe some of these CEOs and companies do deserve to go under. First there's the salary cap, which cuts off any future earnings for you and eventually everyone else. Then there are all the conditions the government places on how you have to spend the money--or NOT spend it. Now there's the threat of actually losing your job! And if you really can't figure out what to do with the bailout money, and you tank your company anyway, where's the upside?

The individuals who figure out how to keep businesses profitable in the midst of this mess--CEOs, consultants, whoever--should be allowed to make whatever the heck they want. And President Obama should, in turn, leave them and their companies the heck alone to rebuild the economy.

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