More Bad News on Pay: Government Aims at the Wrong Target

Dave Mason / October 23, 2009

Not only do government wage controls not work, they usually backfire. Perhaps worse, like a lot of ill-conceived government schemes, they often punish the wrong people. The Federal Reserve yesterday announced a bank pay limits affecting every bank employee in America in (over)reaction to controversy to big bonuses at a few big banks and insurance companies.

On the backfire “front,” the government has tried three times in recent decades to limit executive pay: (more…)