Why TARP salary caps are good conservative policy

Money falling out of bag and into open handsIt’s good conservative policy to oppose pay restrictions, including maximum or minimum wage laws.

But some conservatives also object to TARP salary caps. They are clinging to positions without considering context.

TARP is welfare for terribly-run firms. (I still maintain that chapter 7-style liquidations would have been better in the long run.) These firms got to the precipice of disaster because of incompetent leadership.

What will bad leaders do with cheap taxpayer cash? Line their pockets! What should bad leaders really get? Drastic pay cuts.

So what’s wrong with this salary cap? Nothing. If you got TARP funds, you have to live by reasonable restrictions. If you don’t like these restrictions, then raise capital and pay back the funds.

I am a conservative. I don’t like TARP, but I support its salary caps.

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