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Online usersPollWhat should the government do about ailing financial institutions? Nothing, except to back off and get out—as any Objectivist knows, intervention is treating the disease with the disease 83% Intervene judiciously—enough to avert a catastrophe that is otherwise imminent 3% Intervene massively—as it's doing 3% Nationalize the whole economy and be done with it. Bring on the USSA! 1% Something else (specify) 11% Total votes: 80
 Basic Economics by Thomas Sowell
 Economics In One Lesson by Henry Hazlitt
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ARC Press Release: Don’t Cap CEO Pay—End Bailouts Submitted by Ayn Rand Center on Tue, 2008-09-23 22:33.
Don’t Cap CEO Pay: End Bailouts Washington, D.C.--As the government scrambles to assemble a massive financial bailout package, many are declaring that companies receiving the taxpayer-funded bailouts should face severe restrictions on executive compensation. As Representative Barney Frank put it, “I just think it’s inconceivable that the taxpayer should put some money at risk because of bad decisions made by people who then continue to be rewarded without any restrictions.” ### ### ### Yaron Brook is executive director of the Ayn Rand Center for Individual Rights. He is a regular contributor to Forbes.com and a contributing editor of The Objective Standard. His articles have been featured in major newspapers such as USA Today, the Houston Chronicle, the Chicago Sun-Times, the Providence Journal and the Orange County Register. Dr. Brook is often interviewed on radio and is a frequent guest on a variety of national TV shows, having appeared in the new Fox Business Network, FOX News Channel (The O’Reilly Factor, Your World with Neil Cavuto, At Large with Geraldo Rivera), CNN (Talkback Live and the Glenn Beck Program), CNBC (Closing Bell and On the Money), and C-SPAN. Dr. Brook, a former finance professor, lectures on Objectivism, capitalism, business and foreign policy at college campuses, community groups and corporations across America and throughout the world. To interview Dr. Brook or book him for your show, please contact Larry Benson: For more information on Objectivism’s unique point of view, go to ARC’s Web site. The Ayn Rand Center is a division of the Ayn Rand Institute and promotes the philosophy of Ayn Rand, author of “Atlas Shrugged” and “The Fountainhead.”
Copyright © 2008 Ayn Rand® Center for Individual Rights. All rights reserved.
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I'm saying it's not the
I'm saying it's not the government that cancels the contract; it's
nullified by the company should that company want the bailout.
Oh, I completely agree. A bail out after all is a defacto nationalisation. But then again, I don't agree with bailing out companies in the first place - no matter how 'crucial' they may appear.
I'm saying it's not the
I'm saying it's not the government that cancels the contract; it's nullified by the company should that company want the bailout.
I'm not arguing that any company should be bailed out, but being bailed out they are. Why wouldn't the govt. seek to reduce the amount it chucks into the pot when that taxpayer money is effectively paying CEOs performance pay?
'It is also the responsibility for shareholders to REFUSE to invest in companies who do not have allow a democratic say in the day to day running of the business by shareholders''
A responsibility to who, you? They can invest in who they wish. A democratic say in the day to day running of a company! Don't be ridiculous. What do you want, an EGM to vote on what brand of soap to buy for the restrooms?
"The ultimate result of shielding men from folly is to fill the world with fools."
-Herbert Spencer
The government doesn't own
The government doesn't own the company; if you're going to have the government nulifiy contracts, you might as well get the government to do the selection as well - heck, bypass all the crap and nationalise the thing if one wishes to micromanage an organisation in such a way.
What is needed is for the average invester to stop sitting at the back of AGM's playing with themselves and actually demand some accountability. When shareholders, who are the owners after all, allow a jackass to run a company into the ground, whose fault is it?
It is also the responsibility for shareholders to REFUSE to invest in companies who do not have allow a democratic say in the day to day running of the business by shareholders. If the company is run by ivory tower wankers - then refuse to invest with them. Maybe then, once the marketplace has spoken - their attempt to raise capital and refusal to democratise the direction laying to shareholders will be met with bugger all wanting a slice of their pitiful and pathetic cake.
“It’s true that some
“It’s true that some CEOs performed poorly in the lead-up to this crisis, but that is no reason to allow the government to nullify private contracts."
This strikes me as bizarre. Why shouldn't the govt. insist that the employment contracts be cancelled or re-negotiated for the CEOs of companies that are failing?
Govt. to the Board of Directors: "You are not getting a cent unless we re-negotiate your performance payments. Take it or leave it."
That's not interference in a private contract; the company can always decline the offer, and fail.
"The ultimate result of shielding men from folly is to fill the world with fools."
-Herbert Spencer