Pay Back

by Don Boudreaux on December 21, 2010

in Budget Issues, Debt and Deficits, Intervention, Prices

Here’s a letter to the Wall Street Journal:

You report that “Giant companies such as Bank of America Corp., J.P. Morgan Chase & Co., Goldman Sachs Group Inc. and Morgan Stanley that are considered critical to the U.S. economy, could be forced to award half or more of their executives’ pay in the form [of] stock or other deferred compensation, instead of up-front cash” (“U.S. Mulls New Push to Shape Bank Pay,” Dec. 21).

Proponents of government regulation insist that no institution is more critical to the U.S. economy than is the U.S. government.  So reason dictates that the same rules that apply to executives at the likes of Morgan Stanley should apply also to those who set and execute Uncle Sam’s policies.  Members of Congress and all top White House officials – including the President – should receive at least half of their pay in the form of ten-year bonds whose redemption values are structured to rise with decreases in the national debt and fall with increases in the national debt.

Sincerely,
Donald J. Boudreaux

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