Wednesday, December 27, 2006
Economic Populism on the Campaign Trail
As of late, I've noted that a lot of the folks vying for the Democrat's nomination for President(The same for the GOP's Duncan Hunter) seem to be falling into a populist mindset by pushing things like national healthcare, attacking free trade, large corporations(Wal-Mart), oil companies. What's even worse is the fact that the incoming Congress is talking pretty big on taking on and punishing various Fortune 500 CEOs who make whopping salaries. Now while I couldn't imagine what to do with $10 million or more a year salary, I have to say that it is really wrong for Congress to poke its nose in the tent of public enterprise just because these CEOs had a banner year by doing what they do good in which is making money. When politicians like Edwards and others start talking this populist talk and are able to make these policies law thus punishing folks for being good at their job or corporations making great profits(Remember the "little man" benefits from corporate profits in the form of their 401(k)s, bonuses, opportunity to make overtime and job security) we are in effect setting us up for political suicide. Thankfully, James K. Glassman, senior fellow at AEI and editor-in-chief of The American, has penned a good piece over at USA Today that pretty much sums up why the pay of the CEOs is something to bar or restrict but is on par with what they do and achieve for their employer. Populism might be appealing to the "little man" but in the long run it's disastrous to the American enterprise system and the economy as a whole.