Using AIG As An Excuse

I noted before Congressional Democrats’ intent to punish the AIG executives (and others) who got (or will get) bonuses. That intent is now implemented in “Nancy Pelosi’s discriminatory, confiscatory and retroactive tax” bill which has now been passed by the House of Representatives and sent to the Senate. It appears that Congressional Democrats are trying to push this bill through (a) in response to the anger they have fostered nationwide and (b) before that anger has a chance to dissipate and, especially, before rational thought can occur.

We can only hope the Senate shows more sense and honor than the House has, and kills this bill, because it is extremely dangerous as well as improper and unconstitutional. John Hinderaker has identified the danger better than I can:

If the Pelosi bill is actually enacted into law (which I still think is doubtful) and upheld by the courts, there is no limit to the arbitrary power of Congress. In that event, we have no property rights and there is no Constitution — no equal protection clause, no due process clause, no impairment of contracts clause, no bill of attainder/ex post facto law clause. Instead, we are living in a majoritarian tyranny.

You think this is an exaggerated concern? Talking about this, even the New York Times says "This week, the body politic ran off the rails." and describes what Congress is doing as "economic arson."

Related, also from the New York Times: President Obama is about to call for government oversight of executive pay levels. The report says these controls are to apply to, at least, all financial institutions and possibly much more broadly — perhaps to all publicly held companies. It also says the Administration is discussing whether to do this through legislation or by regulation.

Yes, this is all very dangerous for all of us. And pretty disingenuous to be using AIG as an excuse for doing it.