Dirty No-Longer Secret
Following on Dean Baker's point, the upsurge of anger at casually bestowed bonuses for top bankers--the same who so drastically botched financial matters with consequences apparent for all to see--is evidently the American way of backing into a normally buried question, namely, is there a public interest in regulating salaries?
If you believe that "the market," in the guise of a self-perpetuating "executive compensation" establishment, is entitled to do whatever the market likes, and damn the consequences, then the AIG, Fannie Mae and Freddy Mac bonuses are the ordinary, unexceptionable price of doing business.
If you believe, on the other hand, that the discrepancy between top salaries and medium salaries is outlandish, then the logical policy is to raise top tax brackets. Whether any particular bonuses are warranted is a question that can be disputed by reasonable people. Whether the public good has a claim to the proceeds would seem to be indisputable.














So President Obama's task for the next few days will be that of the Zen Master. Let Merkel, Sarkozy and Hu posture for their domestic audiences, do some serious listening and avoid the temptation to instruct them how to fix their own domestic economies.

