The Wall Street Bonus Fest You're Still Paying For
source: http://www.ypnation.net/blogs/wall-street-bonus-fest-youre-still-paying
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- NankinYP
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These huge bonuses coming from banks that the government--i.e. the taxpayer--is subsidizing are antithetical to free markets, to conservatism, to capitalism, says Ewan Watt.
So why aren't we doing anything about it?
"As I have stated before, without a radical reform of our banking system the United Kingdom and the United States will not see the sustainable recovery we so desperately crave. If we continue down this route of subsidizing banks--and their bonuses--consumers will not see the fruits of lower interest rates: greater disposable income and easier access to credit. Both are required to necessitate a full economic recovery.
Unfortunately the debate is being stifled by those who claim--in the name of conservatism nonetheless--that halting the excess in these institutions violates free markets. Yet the only reason these bonuses are being paid out is because the taxpayer is covering the risk. When did a tax-induced bonus pool become a totemic symbol of the free market?"
So why aren't we doing anything about it?
"As I have stated before, without a radical reform of our banking system the United Kingdom and the United States will not see the sustainable recovery we so desperately crave. If we continue down this route of subsidizing banks--and their bonuses--consumers will not see the fruits of lower interest rates: greater disposable income and easier access to credit. Both are required to necessitate a full economic recovery.
Unfortunately the debate is being stifled by those who claim--in the name of conservatism nonetheless--that halting the excess in these institutions violates free markets. Yet the only reason these bonuses are being paid out is because the taxpayer is covering the risk. When did a tax-induced bonus pool become a totemic symbol of the free market?"
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- tags:
- Wall Street, Capitalism, Ronald Reagan, Free Market, 2 more
