American Insurance Group (AIG) has been bailed out twice by the government in order to keep the economy alive. After AIG received their first bailout they threw a boat party for all of the employees to celebrate their "accomplishment". After the second bail out AIG decided to reward their executives with large bonuses. This action made the country furious because the company received 170 billion dollars from the United States tax payers. AIG claims that these bonuses were necessary to attract top talent to run the company and make the business batter. It turns out that eleven out of seventy-three AIG employees who received one million dollars or more in bonuses no longer are employed at AIG. Congress wants to tax the recipients of theses bonuses in order to regain the money and send where it is needed. Although many believe that it is none of the government's business what AIG decides to do with the money, I agree with those who criticize AIG for their terrible decision making. The government is clearly involved in the situation because the money comes from them. I believe that this money should be retrieved by the government and then sent to wherever it is needed.
Tuesday, March 17, 2009
American Insurance Group (AIG) has been bailed out twice by the government in order to keep the economy alive. After AIG received their first bailout they threw a boat party for all of the employees to celebrate their "accomplishment". After the second bail out AIG decided to reward their executives with large bonuses. This action made the country furious because the company received 170 billion dollars from the United States tax payers. AIG claims that these bonuses were necessary to attract top talent to run the company and make the business batter. It turns out that eleven out of seventy-three AIG employees who received one million dollars or more in bonuses no longer are employed at AIG. Congress wants to tax the recipients of theses bonuses in order to regain the money and send where it is needed. Although many believe that it is none of the government's business what AIG decides to do with the money, I agree with those who criticize AIG for their terrible decision making. The government is clearly involved in the situation because the money comes from them. I believe that this money should be retrieved by the government and then sent to wherever it is needed.
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It's a great sentiment, Danny, but I wonder what it will really do even if all of the bonuses are recalled. Ultimately, the amount of $$ is a drop in the bucket, compared to the total amount being shelled out by taxpayers, right? And now the US gov't owns ~ 80% of AIG, so it's doubtful there will be further problems along this line.
I wonder if this outrage over the bonuses distracts us from more important matters, like the plan to buy up all of those "toxic assets" or the war in Afghanistan, etc.
What kinds of mythologies are politicians tapping into when they express anger over bonuses? This is what we'd love to see you explore to better connect to our course.
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