Originally Posted by Rohirrim
What I don't get is this: Dennis Hastert was on Meet the Press yesterday talking about how the Europeans aren't suffering from outsourcing and all these other economic ills because they aren't over-regulated, over-taxed, etc. (you know, the same old GOP bs). He argued that if we dump the corporate taxes (I thought we already had!) and dump the over-regulation (you know, like letting them dump whatever they want into the groundwater) the outsourcing would stop. What I don't understand is this: If the American corporation is so oppressed by taxes and regulation which forces them to outsource jobs and factories, why are their CEOs making more money than ever? Which one is right, Dennis?
I don't understand what you think is inconsistent. Isn't it possible that corporations are reacting to a high cost structure (e.g. US taxes and regulation) by taking steps to reduce the cost structure (e.g. by outsourcing and off-shoring) in order to maximize competitiveness? And if they are successfully keeping the corporations competitive and hitting their financial targets, why would you not expect the CEOs to be compensated for their successes? I see no contradiction here.