Comments on: Obama Must Put An End To ‘Crony Capitalism’ http://www.contrarianprofits.com/articles/obama-must-put-an-end-to-crony-capitalism/8319 Access market-beating ideas from the world's top investment gurus on stock market investing, the gold market, ETFs, Forex trading and real estate values. Tue, 24 Nov 2009 15:08:08 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: David Cross http://www.contrarianprofits.com/articles/obama-must-put-an-end-to-crony-capitalism/8319/comment-page-1#comment-6744 David Cross Sat, 15 Nov 2008 14:06:36 +0000 http://www.contrarianprofits.com/?p=8319#comment-6744 "Performance pay should be based on creating long-term shareholder value, not on meeting next quarter’s earnings estimate. A good place to start would be bonuses in the form of restricted stock that does not vest for 10 years. I doubt Lehman would have blown up if employees were paid modest salaries with the potential for sizeable ownership stakes in the future." These concepts - removing the unhealthy short-term focus in the business sector and compressing wage structures - are (surprise) concepts that have been pushed since the 1990s by us Godless Socialists. ;) A gross inequality in wages and in wealth invariably provokes more frequent recessions as demand periodically sags among those least able to absorb wage cuts (i.e. the average Wal-Mart worker). The wealthy are simply not numerous enough nor spendy enough to compensate. “Performance pay should be based on creating long-term shareholder value, not on meeting next quarter’s earnings estimate. A good place to start would be bonuses in the form of restricted stock that does not vest for 10 years. I doubt Lehman would have blown up if employees were paid modest salaries with the potential for sizeable ownership stakes in the future.”

These concepts – removing the unhealthy short-term focus in the business sector and compressing wage structures – are (surprise) concepts that have been pushed since the 1990s by us Godless Socialists. ;)

A gross inequality in wages and in wealth invariably provokes more frequent recessions as demand periodically sags among those least able to absorb wage cuts (i.e. the average Wal-Mart worker). The wealthy are simply not numerous enough nor spendy enough to compensate.

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