Thoreau surveys the Twinkies and asks a question:
Why is it that whenever we hear of a company that is going bankrupt, or getting bailed out, or bringing down the global economy, we inevitably learn that top managers are getting bonuses and raises? Mind you, I realize that executive compensation is usually a small percentage of the company’s expenses, so my point is not “How can they afford this?” Rather, it’s about incentives: To whatever extent market competition yields good, efficient outcomes for society, it’s because market competition supposedly aligns actions and consequences, thereby producing incentives that guide behavior. However, when banksters destroy the global economy, or a company is run into the ground, people keep getting their bonuses. For what?
We should stop calling it “vulture capitalism.” The term slurs vultures, the trash haulers of the wild, who provide an essential service.
“Vampire capitalism”: that’s my submission.
Image via Balloon Juice.