COMMENT Politicians acting in haste rarely act wisely, least of all when guided by rage. In response to outrage over retention bonuses paid to employees of AIG – the failed insurer, now mostly owned by the government, which has received tens of billions in public support – the US House of Representatives rushed to pass a punitive tax aiming to claw the bonuses back. It would apply to all groups receiving help under the government’s financial stability plan, not just AIG. A similar measure is before the Senate.
The outcry over these bonuses is entirely understandable, though less than fully thought through. Understandable or otherwise, the response smacks more of banana republic than good government.
