The costs of Congress


When Congress tries social engineering, the problems get worse
This article from OpinionJournal.com is actually a couple of days old, but I wanted to talk about it.

If we weren't talking about rich CEOs, there would be no question.

Congress doesn't have the authority to regulate any private sector salaries.

Not plumbers. Not taxi drivers. Not accountants. Not auto workers. Not gardeners. Not middle managers. Not salesmen. Not grocery store baggers.

The only way Congress can justify it's continued interference in the free market is by bending the "interstate commerce clause" out of shape.

CEOs just happen to be a high profile target.

But more importantly, look at what happens when Congress starts to perform "social engineering."

One questionable behavior becomes several unethical behaviors, all of which cost the stockholders.

Congress created more problems.

And now, the only method that anyone is talking about to solve the new problems is more regulation and more governmental control.

Which, in turn, will result in more unethical compensation.

This should be a familiar pattern by now. Congress takes on a "moral" or "ethical" problem. The new laws and regulations have devastating effects and end up promoting the very type of behavior that Congress tried to stop.

Prohibition. The War On Drugs. The Anti-Trust Act. The Environmental Protection Act. The various Federal gun control laws. The income tax.

Always it makes the problem worse. Always the only "practical" solution is more control.

— NeoWayland

Posted: Tue - May 30, 2006 at 05:46 PM  Tag


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