That’ll teach ‘em!
Sure it will.
Want to buy a bridge?
What makes you think people who have made huge salaries will stay on working for a fraction of their salary? A salary exceeded by many junior stockbrokers on Wall Street? You may not like them, but do you think they got where they are by being stupid?
An online article in Scragged states:
“If, truly, the very best leaders require astronomical salaries, then the banks with salary caps won't be able to afford any managers but losers. Every last one of the best leaders will go to the private firms, which will then proceed to run rings around the others thus hobbled. In time, the government-owned failures will go out of business; the government will be out of the business world as it ought to be. Problem solved! For sure, New York City believes this is what will happen; we're seeing reports of panic in the streets that the executives of New York's bailed-out banks, wanting more than a mere half-mil, will be decamping to greener pastures.
If, on the other hand, mega-salaries are not truly required, but came about by insider games, we'll all be able to see it. The government companies with their cheap leaders will be able to compete just fine. Once that fact becomes widely recognized, what owner or board of directors would be able to justify a multi-millionaire salary for an executive when their government competitor is doing just as well paying a paltry few hundred grand? The executive salary ratchet will go into reverse all by itself, without the need of further government intervention.”
Which will it be?
If we tax the rich excessively, they will eventually relocate their wealth to places that will gladly take a smaller share. Fair? Probably not, but true nonetheless. What we intend to do in the name of fairness and doing the right thing may not give us the consequences we expect. I think we have some major unintended consequences ahead. Whether they are good consequences or bad consequences remains to be seen.
