Political Comment

For the past couple of weeks, it seems like everyone has been caught up in the imbroglio over bonuses paid to executives at companies that have been rescued from failure by taxpayer dollars. This is clearly an issue that strikes a chord, not just because of the cash involved, but also the a commonly held basic notion of fairness: how is it that individuals largely responsible for the economic misfortunes of not only these particular companies (most notably AIG), but really global financial markets in general, can be rewarded for their malfeasance?

Clearly this is a big story, but on some level I can't help but think it is also a distraction. So much time and energy is being devoted to an issue that is easy to grasp, but only really symbolically representative of the ongoing problem. Yes, these companies have been profligate, and that needs to stop. But how exactly does taxing the bonuses address that problem? Do we really think that the corporations won't figure out other ways to compensate their executives that would be equally evasive of general notions of their actual worth? Wouldn't we realize a more equitable and satisfying (in the long-term) return if efforts were made to establish functioning regulatory oversight of the industry, close corporate tax loopholes, and criminally prosecute those who we are now suggesting may have actually engaged in fraud? I don't see any of those things really being discussed, certainly not with the vehemence of the bonus issue. Maybe something is happening behind the scenes, but it seems if any real progress is to made in areas of real substance-- as opposed to some form of symbolic public retribution-- it would be nice to see the powers-that-be in the Obama administration out front generating public support for those efforts.