Lewis' argument in this clip could apply equally well to Andy Rooney (assuming he makes a lot of money) or stars in any kind of star system - entertainment, sports, whatever.
What they all have in common is that they're not paid directly by people - like your hairdresser is - but by corporations.
And what these corporations do is basically add a little private "tax" of their own to everything they sell - or looked at another way, they charge a little private income tax on all their employees and stockholders - to create a massive slush fund to pay truly monstrous salaries and bonuses to the few executives who are at the top of the heap, and the stars with whom they fraternize.
They don't earn this money - like the Wall Streeters, they just siphon it off from a large revenue stream.
True, they don't bring the economy crashing down...but neither do they "deserve" what they're paid.
This is a democracy - I wonder why we don't just pass a law against income exceeding a certain reasonable level - what a history teacher would consider reasonable, as Lewis says - or at least pass taxes of our own to claw those megasalaries that make everything we buy more expensive, and make all own own incomes a little bit lower, back for our benefit.
A Salary Cap? Really? That's the most ridiculous thing I've ever heard. The fundamental ideas that the United States of America was founded on is the complete opposite of what you've just described. The problem with your proposal is- many people view salaries as motivational tools to go put in a hard days work. A megasalary is this generation's "American Dream". Take that away and American society crumbles. If anything, they should increase taxes on high income individuals, that way the money can be put towards health, education, and job creation.
A Salary Cap? Really? That's the most ridiculous thing I've ever heard. The fundamental ideas that the United States of America was founded on is the complete opposite of what you've just described. The problem with your proposal is- many people view salaries as motivational tools to go put in a hard days work. A megasalary is this generation's "American Dream". Take that away and American society crumbles. If anything, they should increase taxes on high income individuals, that way the money can be put towards health, education, and job creation.
Yeah but we don't have to bail out those sports figures that are overpaid to prevent depression. If we let too many financial institutions fail, we'll all be selling apples on the streets and have child labor here just like in third world countries just so that we can stay in our 4000-5000 sq. foot houses.
I think Andy Rooney is overpaid, but then maybe not since I am sitting here watching him. On the other hand, Andy is sitting there knowing I am sitting here watching him so why don't I get over paid for that as well?
This is great story but it incomplete. What about the Faux News crowd who quickly blamed the sub prime meltdown on minorities who were trying to buy a home they couldn't afford...Though the idea that the entire western economy had been sacked by minorities seeking a new home should have been rejected out of hand as completely ridiculous, the lie was spread for months on end and even now has not been sufficiently withdrawn--at least to my satisfaction. It turns out that this was an inside job all along...
To Steve Kroft: Have you ever asked the "FUNDAMENTAL" question why these sub-prime bonds are worthless? People keep selling this notion that these sub-prime mortgage bonds are worthless; they are not, at least not all of them. These bonds are ultimately linked to a real mortgage out there. May be some of these mortgages lost more than 50% of their value (in some markets but not all). If you want to see who owns your mortgage, just default! You would be foreclosed by some bank some where! That is the hard link.
If AIG were allowed to fail, the firms that owned these credit default swaps would have ultimately took ownerships of these mortgages. AIG would have been liquidated, and the owners of these credit default swaps (the investment banks ...) would have lost their bet. That is all!! Yes some of them would have perished, but that what they deserved.
If AIG were allowed to fail, others would have taken its place and all of us--and America--would have been better off. It was a big lie that if AIG were to collapse, the whole world financial marked to have gone with it. Wrong. That is a lie. Now the world financial system will melt once again because of the AIG bailout!! That is the "FATAL ERROR"--knowingly committed.
I would like someone to explain to me why people in the entertainment, sports, wall street, high execs in pharmaceutical and health care corporations and health care insurance companies believe are entitled and receive obscene salaries and bonus. Yet,many fire rescuers, EMT's. teachers, police officers, bedside nurses, etc., are presently suffering economical hardship. The only justification I can find is they lack moral ethics. But beware! lets not forget that at one time or another either their children, parents or themselves wil, at one time or another, needof their services and the we are all equa, or not?
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What they all have in common is that they're not paid directly by people - like your hairdresser is - but by corporations.
And what these corporations do is basically add a little private "tax" of their own to everything they sell - or looked at another way, they charge a little private income tax on all their employees and stockholders - to create a massive slush fund to pay truly monstrous salaries and bonuses to the few executives who are at the top of the heap, and the stars with whom they fraternize.
They don't earn this money - like the Wall Streeters, they just siphon it off from a large revenue stream.
True, they don't bring the economy crashing down...but neither do they "deserve" what they're paid.
This is a democracy - I wonder why we don't just pass a law against income exceeding a certain reasonable level - what a history teacher would consider reasonable, as Lewis says - or at least pass taxes of our own to claw those megasalaries that make everything we buy more expensive, and make all own own incomes a little bit lower, back for our benefit.
If AIG were allowed to fail, the firms that owned these credit default swaps would have ultimately took ownerships of these mortgages. AIG would have been liquidated, and the owners of these credit default swaps (the investment banks ...) would have lost their bet. That is all!! Yes some of them would have perished, but that what they deserved.
If AIG were allowed to fail, others would have taken its place and all of us--and America--would have been better off. It was a big lie that if AIG were to collapse, the whole world financial marked to have gone with it. Wrong. That is a lie. Now the world financial system will melt once again because of the AIG bailout!! That is the "FATAL ERROR"--knowingly committed.
Ali
College Park, Maryland