Today’s reports on Pres. Obama’s proposal to limit executive pay in bailout companies reminded me of Cornell Prof. Robert H. Frank’s books Winner Take All Society and Luxury Fever. More than a decade ago, Bob warned of the dangers of skyrocketing compensation for top entertainment and business figures. He also offered some solutions. Alas, those solutions were largely dismissed as being impractical, given the political and cultural obstacles.
With the excesses of Wall Street, bankers, et al, having hurt us all, those obstacles might now be addressed. We should look to our scholars for answers they’ve been developing for years and not just to political insiders who are flailing around with our trillions of taxes and increased debt.