…whatever is true, noble, just, pure, lovely, of good report, of any virtue, anything praiseworthy – meditate on these…
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| 19 | 20 | 21 | 22 | 23 | 24 | 25 |
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Why is the world’s economy in turmoil? Hmmmnn, let’s see, spend the least as possible on non-managerial salaries / labor (minimum wage), input a meager amount into investment but just enough to maintain the façade as well as personal interests and pay what you must in taxes. Then finally, take all that remains and divide up for US$165 million in American International Group, Inc. (AIG) executive bonuses, US$10 million on vacation beach property US$50 million on a private jet, US$65 billion Madoff investor fraud and don’t forget US$1500 / JA$132,000 on a dress for the Academy Awards (Oscars) , worn for one night only. Need I say more?
We live in an era where technology, 4 decades earlier put man on the moon, which since, 4 decades later clones animals, builds radio frequency identification (RFID) and human chip implants. Governments, scientists and technology have gone above and beyond, yet we haven’t found solutions to economic well being. Seriously, what is the “rocket science”?
There are many AIG-like bonuses and more Madoff-focused CEOs and executives than we care to see, eyes wide shut. Where is all the money going? Economist need to rename the ‘circular flow of income’ to the ‘funnel flow of income’, the ‘filter flow of income’ or the ‘AIG flow of income’.
Yet still, let us look at ourselves in the mirror because with knowledge, globalization and technology combined, the core of our economic challenges lie in the need for excess.
It is the need to live excessive and lavish lifestyles that fuel the need for minimum wages and unemployment. People can’t buy or demand what is produced if they have the opportunity to earn it. Businesses can’t supply because they have to pay for the lifestyles of the AIG-like executives of the world.
The way forward is for all of us to rightly contribute to production and consume in a practical way instead of an excessive desire for more than we need or more than is necessary.
Bernard Madoff is a former American businessman, founder and chairman of the Wall Street firm Bernard L. Madoff Investment Securities LLC. In December 2008, Madoff confessed and was convicted of defrauding investors of US$65 billion dollars by operating a Ponzi scheme.
American International Group, Inc. (AIG) is one of the largest American insurance corporations in the U.S. In late 2008, the company fell into liquidity crisis and to date the U.S. government has given the company over $170 billion (tax-payer funded). Since the bailout, the company, its CEO, Edward M. Liddy, board of directors and other executives have been embroiled in one scandal after the other. Most notably for the allocation of US$165 million for executive bonuses in March 2009, for which the company has come under heavy rebuke and outrage from taxpayers and the US Government.
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read more: AIG’s post bailout spending
read more: Madoff’s Victims’ Court Letters
Posted in Politics & Social Issues
The “AIG Crisis” only seems to get worse as the days go by and I keep wondering what is going to pop up next. It is a sad thing but even so, I think that the executives are being unfairly ‘crucified’. They’re contracts entitle them to pre-defined compensation and they too have bills to pay.
I’m livid about the AIG bonuses, but it goes beyond that. If you follow the chronological events, it shows that they just made one bad decision after the other. What should have happened is that the CEO – Edward Liddy should have been required to step down. Just like Rick Wagoner, the CEO of General Motors (GM) – not as an indictment of him personally, but at some point leaders must be held accountable and he is the captain of the ship. I bet if we held more CEOs, General Managers and middle Mangers more accountable – shape up or ship out – we would then see better results overall in business management and taxpayers wouldn’t end up suffering in the long run. Cut the head honchos’ jobs and save thousands of middle/working-class workers from unemployment.