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Showing posts from March, 2009

The German State And How It Makes Money

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Again and again I am impressed with the Germans. They know how to make money. Take the German government, for example. One of the big issues in Germany now, with the financial crisis and all, is high income and bonuses of managers. Everyone is worried about it, more than anyone the politicians, who know an opportunity when they see one. In fact, you could say that the politicians almost seem convinced that they way to solve the financial crisis is not to actually solve the financial crisis, but to limit managers from making so much money.

Theoretically, if managers make less money, that money can staying the company and either go to higher employee salaries or to reinvestment. Lucky for the German government, however, the constitution will not allow you to tell a company how to invest its money or even how much you can make a year. To you and mean, that would seem to say that the government has no business telling a company what to pay its managers, no matter how unfair. But German po…