Dave in Houston wrote:
"HeyBub" wrote in message
m...


This theory was settled in the 18th century by Adam Smith in "The
Wealth of Nations." He proved that when everyone worked to maximize
his own personal benefit, the nation as a whole benefited more than
any other system.

Some people just haven't kept up.


Oh-h-h-h-h-h! Then that would explain the prevailing theory of
executive compensation in today's corporate world(s).
I get it; I get it! Think AIG.


Yes it would. Bonuses and commissions are part of the "commercial" mindset.
This differs from the "guardian" (government) philosophy where they are
generally prohibited (think "quotas" for traffic tickets).

In the case of bonuses, there were tax reasons behind them. Federal law
prohibits, in many cases, paying a salary that both the employee and the
company agree upon. These same regulations do not prohibit bonuses, so
that's how many businesses circumvent the restriction.

Governments often try to interpose themselves in the general marketplace,
but the marketplace usually finds a way to flow around the obstruction -
sometimes at great cost, but the market always wins.

In the case of AIG, be aware that AIG is the largest insurance company in
the world. They did not get that way by paying key employees an hourly rate.