by Alexis Cala, PICurrent Assistant Producer
Courtesy of Blmurch
From the beginning of the recession, greed and risk have been responsible for much of the undoing in our economy. We have been paying out of pocket to fix a disaster that stems from poor decisions. Decisions that continue to turn our markets upside down and cause screaming matches over who’s to blame.
One recent battle includes AIG, American International Group. Once a well thought-of insurance giant, AIG has become one of the many businesses out there just trying to make some easy money (make that an easy million).
After receiving over $170 billion in stimulus aid, AIG doled out another $165 million in bonuses to employees. The icing on the cake, the millions in bonuses went to the same department that helped drag AIG under in the first place (read the full story on The New York Times).
So, who is responsible and what’s being done to fix this?
Ultimately, words may be to blame. Language added to the stimulus allowed these bonuses to be paid, although the U.S. Department of Treasury may be at fault too. They knew about the bonuses and did nothing to stop them. It seems that everyone has had a hand in creating this mess.
New York Representative Steve Israel told The New York Times:
This money doesn’t belong to A.I.G., it belongs to the American taxpayer and we are going to get it back.”
While some employees at AIG have already returned their bonuses, others are being encouraged to give back at least half. Outraged cries from the public and President led to the U.S. House passing a bill Thursday that will tax 90 percent of the $165 million in AIG bonuses. To avoid making the same mistake again, this tax will also apply to any other company that had accepted more than $5 billion in bailout funds.
What do you think about what’s going on with AIG? Please share your thoughts and concerns with us, the comment section awaits.
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I think the government is right to tax those guys at A.I.G. We’re in a recession people and they decide to give their top employes raises with taxpayer’s money? What’s wrong with them? The employes who gave back their bonuses did the right thing, in my opinion.
Like almost every other company that applied for a bailout, they’re just trying to get easy money from the government.
Cody, so true, it does seem that a lot of organizations are just out looking for some easy money. With much of America broke or budgeting right now, who couldn’t use a bonus? But like you said, we’re in a recession and that “easy money” comes from our pockets. It’s definitely not easy when we pay for it in the long run.
Thanks for your comment.