Limit CEO pay, add strings to bailouts

On Nov. 18 appeared yet another editorial by George Will. Right Wing World is pretty adamant these days that there should be no $25 billion bailout of the Big Three auto companies and that if they can't make it, they should stick it to their employees by filing a Chapter 11 bankruptcy. Too bad they weren't as adamant about the $700 billion blank check given to Secretary Paulson to bail out investment banks that produce nothing and are pretty much casinos for the wealthy.

It is admittedly difficult to take the CEOs of the Big Three seriously when they are paid $15 million to $22 million a year and flew in on private jets to go before Congress hat in hand. Are they willing to take cuts in their ridiculously lavish pay, and sell off their private jets, or, as usual, will the people who actually work for a living at those companies be asked to make all the sacrifices?

There are two main principles that guide right wing economic theory: 1) If somebody works his tail off on an assembly line earning $40 an hour with good health and pension benefits, that's an abomination that needs to be fixed; however, paying $22 million to one of the CEOs of these companies for doing Three Stooges-like work is just business; and 2) If Congress proposes allowing the bankruptcy courts to reset the interest rate down on a mortgage so the homeowner can keep his house, that violates the sanctity of contracts; however, if a corporation, such as United Airlines, uses the bankruptcy courts to cheat their employees and retirees out of benefits they agreed to pay, that's just good business practice.

These economic theories have been in place the last eight years, and people who think like Will must never again be allowed to run economic policy in the United States.

The Big Three are worth saving if only for the fact that we have lost already too much of our manufacturing base because too many American corporations set up shop overseas in countries where people work for nothing. Contrary to right wing economic principles, it is actually a good thing to have jobs that pay adequate wages. When people aren't spending all of their income on food, rent, and gasoline, they can actually afford to pay mortgages and buy things like cars.

It is high time that strings come with any future bailouts. Executive compensation needs to be reduced to no more than what the President makes. There should be no dividends paid to shareholders, no bonuses for CEOs, and no $450,000 parties like AIG held, until the U.S. Treasury is paid back in full. If the corporations aren't willing to make those sacrifices, then they don't need our help. We also need to modify our bankruptcy laws so no future corporation gets away with the garbage United Airlines and others have pulled on their employees and retirees.

Charles E. Crouse

Elgin