Dodd-Frank: A Nightmare On So Many Levels
Senators Barney Frank and Chris Dodd put together yet another progressive nightmare for our marginally free-market system. Granted the thought of those two alone in a dark corner is nausea-inducing, that’s not where I’m going. The Dodd-Frank bill, otherwise known as the “Wall Street Reform and Consumer Protection Act” neither reforms Wall Street nor protects consumers (who should really need no protection from anyone but themselves).
This is yet one more instance of self-aggrandizing, big-government bureaucracy all wound together to hopefully get another pair of party-line idiots re-elected. It’s populist in nature but elitist in execution.
One of the less analyzed provisions may very well serve to push jobs oversees – yeah, really. The problem begins in the quizzically-utilized math in the bill. Section 953(b) of this monstrous affront to free-markets:
(A) the median of the annual total compensation of all employees of the issuer, except the chief executive officer (or any equivalent position) of the issuer;
(B) the annual total compensation of the chief executive officer (or any equivalent position) of the issuer; and
(C) the ratio of the amount described in subparagraph (A) to the amount described in subparagraph (B).
Basically, the average pay of all workers in a company, the wage of the CEO/President and a ratio comparing the two.
The intent of this bill is to show income inequality, which is only so great because of liberal initiatives. Unfortunately, it will cause more inequality, but their stats will look better.
Understand the mindset of the American business leader. If this regulation is truly enforced, the only course of action for them to take is to make sure this ratio does not end up higher than their competitors. To do that, they will simply lay-off every single one of their lowest wage earners. They will then outsource that work (the easiest to outsource by far) to Mexico (take a gander at what GM is doing with your bail-out money), China, or India.
This also means those companies won’t have to deal with oppressive health care mandates, ridiculous corporate taxes or whatever new populist garbage comes out of Washington. You have nothing to worry about, heck, 1 in 6 Americans rely on the government for income as it is .. this will just add a few million more.