Foundation for Economic Education » Obama’s Wall Street Pay Cap Could Have Side Effects

Obama’s Wall Street Pay Cap Could Have Side Effects

Posted By Sheldon Richman

“By limiting annual pay to $500,000 and dishing out additional pay in restricted stock that can’t be cashed in until the government bailout money is paid back, a host of unintended consequences may result, ranging from a brain drain of top talent to a potentially less-generous approach to paying employees at other financial firms.” (USA Today ^[1], Thursday)

We know what price ceilings do.

FEE Timely Classic

“Price Controls and Shortages” ^[2] by George Reisman

Article printed from Foundation for Economic Education: http://www.fee.org

URL to article: http://www.fee.org/uncategorized/obamas-wall-street-pay-cap-could-have-side-effects/

URLs in this post:

[1] USA Today: http://www.usatoday.com/money/companies/management/2009-02-04-executive-pay-cap-consequences_N.htm

[2] “Price Controls and Shortages”: http://www.thefreemanonline.org/columns/price-controls-and-shortages/

Click here to print.