Thursday, February 05, 2009

Strangling Wall Street

Not exactly an unforeseen consequence- Obama's plan to limit the pay of Wall Street executives who work for companies that have received a .gov handout will drive the talent away. And while some, Hot Air for example, believe that the market is such that executives won't have any choice word is that overseas firms are already trying to poach the talent away.

"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."

So the government pours millions of dollars into firms to prop them up and then puts a rule in place which ensures that talented people with the ability to turn those same companies around won't work for them.


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