Tuesday, March 17, 2009

AIG Should Pay It's Bonuses

Do you Rememba'? when I said those bailouts were a TERRIBLE idea?

Anyhow, "the government" decided that AIG NEEDED $165BILLION of our tax money.  No one could explain exactly how they came to the number $165BILLION just that it was a really big amount of money, and AIG NEEDED it. Why did they need $165BILLION, who knows, no one ever asked or explained what the money would be used for, they just needed it. Our government gave it to them.

Over the few short months since AIG received theirour money The Ohh-Man has been telling us he wants to put Americans back to work. Give money back to Americans. Stimulate the economy. Etc. So here is AIG, with $165BILLION of OUR money trying to give, and here comes the math,FAR less than 1% of the money to it's employees, to people, to Americans. AIG intends to pay just $164Million in bonuses.  Take $164,000,000 divided by $165,000,000,000 is a tiny lil' .00099393939393... It's nothing. Peanuts. Rubbish. Shite. Pay up AIG. I was kind of bummed to get a 10% pay cut, when I was expecting a 3% pay raise. I don't have any kind of contract so I can't complain too much I suppose, but if I had a contract promising me a $1MILLION bonus, and my employer just received $165BILLION, I'd expect to be paid. They certainly have the money to pay me what we agreed to.

Let's think about this for a second. What else should AIG being doing with the money? Our legislators didn't seem to care when they handed out the $165BILLION. Why do they care now? AIG wanted $165BILLION, without a thought, our elected government gave it to them, and then after the fact, they want it back. When I was a kid, we called this "Indian Giving". I think that might be a racist/offensive term now. I don't apologize and the Indian's should feel free to write me a nasty letter and boycott my blog.

Now, of course, I suppose that I should take a look at some other views, I'm sure there are more.

1) If the government didn't bailout AIG, all of these employees would be unemployed and get no bonus anyhow.  Correct, sort of. AIG tells us that these are the best and the brightest in the world, which is why AIG has to pay them to keep them aboard. If they are the best and the brightest, why did the company need a bailout? And second, if they are the best and the brightest, do you really think they would be unemployed? Seems like the best and brightest might have started their own small (or large) business.  We the People (or the Chinese) wouldn't be on the hook for $165BILLION.

2) If the government doesn't let AIG pay the money to employees, what should AIG do with the money? Give it back? HAH. Why would YOU (the government) have given AIG money they didn't need then? The government is asking for accountability from AIG, We the People (or at least me) wants some accountability from our legislators (that means you Mr. Frank Pallone!) Kind of makes you (the government) look bad to give out $165BILLION and then admit that you didn't have a clue how you came to the conclusion that $165BILLION was reasonable. How much more of that $165BILLION isn't needed (I say none of it, but whatever, I'm just an AverageNoOne after all)?

Bottom line, pay up AIG and take your beating OhhMan and company. Let this be a lesson in why government bailouts are a bad idea.

1 comment:

Chris said...

My view is that those people brought 165 billions to the company, even when business was going bad, so they deserve the bonus.

Jim, if you get my company $1mil in government aid, I promise you a bonus of $100k.