Thursday, February 05, 2009

Unintended Consequences

Did Obama's bailout salary cap sound like a good idea to you? $500,000 limits for executives is a step toward socialism that today's progressives would like to see.

But, the bitch is, those folks in government (who live off of OUR dime) have no clue how complicated things are.

"Without the talent of Wall Street to bring us back into a position of leadership in the global economy, we're going to be in bad shape as a world economic power," said Kathryn Wilde of the Partnership for New York.

Wylde says the Obama salary cap will lead to a critical brain drain – China and the United Arab Emirates have already come to poach Wall Street talent. She also says lower salaries in the financial industry will mean dramatically lower tax revenues for the city and state.

"We also depend heavily on the financial services industry to fund our economy and our tax rolls," said Wylde. "Last year 20 percent of our income taxes in the states – 12 percent in New York City came from Wall Street."

h/t: Hot Air