AIG Bonus money

Anger is an interesting emotion. It always seems to be the one we turn to when things don't go as planned. If we are confused that makes us angry. If we are afraid it makes us angry. If we don't get what we want it makes us angry. The problem is that anger always must have a target. If one of your friends tells you they are pissed off your natural reaction is to "at what?". Often times we don't really understand whats going on so we pick our easy targets the government, society, kids these days etc.

Currently people are angry with the economic situation we are in, and because no one understands the economy we are on the lookout for someone to blame. Enter AIG bonus money. "How outrageous it is that they pay people at AIG bonuses, how dare they?" We yell in our newly found righteousness. This anger is misdirected as it often is. AIG should be able to pay bonuses and here is why.

AIG is a business, and one desperately in need of competent employees. Why would anyone choose to work at AIG if there was no possibility of a bonus? Why would you not just find a job elsewhere? (assuming you can)Expecting people to do more for less money is a difficult task. (As far as I am aware only public education has been able to do that.)

AIG was bailed out. Lets think about that for a moment. When a ship was sinking you would do your best to scoop out as much as possible, so you had time to plug any holes. The ship was not towed to the dock and torn apart for scraps if it had been "bailed out". The government had some very difficult choices. Basically it could
1. Do nothing.
2. Take over the company
3. Bail out the company.
Being afraid that AIG's collapse would severely damage the market, we chose to bail them out. In essence we said "Yes AIG you screwed up, but instead of killing you or taking control, we are going to let you fix yourself.

This next reason might scare some of you. You have been warned.

AIG didn't do anything wrong. I know, scary huh? "NOTHING WRONG!?" you shout. They almost destroyed the free market. Yep, but they didn't. What it all comes down is that AIG exploited a loophole and made a ton of money before being bailed out. That is what companies do. Make as much money as possible, and exploit legal loopholes. Corporations are legally obligated to make as much money for their shareholders as possible. That doesn't mean that corporations are evil. Far from it. Without corporations we wouldn't have 99% of the conveniences and goods we enjoy today. That is simply the nature of capitalism. To make as much money for yourself as possible, and by looking out for yourself the invisible had raises everyone, mostly.

So thats why I am not mad at AIG for paying out bonuses. I honestly don't think I can be mad at them for anything they did. They were merely playing the business game that all companies do. If you are still mad thats fine. I hope you don't read this and change your opinion without question. I hope you research this a little for yourself.