Dean Baker, an economist who actually understands economics, has written an informative article published by THE GUARDIAN* on December 10. Titled “Let’s Get This Straight”, it notes that AIG executives, who drove their company into near-bankruptcy and almost sank the American economy, got millions in executive bonuses paid by the taxpayers while workers in the city of Detroit who did nothing wrong will see their pensions slashed due to the city’s budget travails.
Meanwhile, the man who previously operated Obama’s strings before becoming mayor of Chicago, Rahm Emmanuel, has taken a page out of the Republicans’ book for Detroit and plans to tap pension funds to fund the current city budget. It’s probably not legal to do so, yet legality has never been Rahm’s prime concern.
Interestingly, Rahm was Obama’s Enforcer-in-Chief when the AIG was paid off. He never suggested that AIG executives forgo bonuses nor did he question using public “welfare” money for this act.
BTW, if readers would like to keep up on what is really going on in American politics and government, there is no better choice for regular reading than The Guardian published in Great Britain. The American media fall lockstep in the republication of Government Press Releases as if they were legitimate news. The Guardian does not suffer from undue deference to the powers that be Stateside. See, http://www.theguardian.com
Dean Baker blogs at Beat the Press http://www.cepr.net/index.php/beat-the-press/