A solid argument in favour of paying the $165 million in bonuses
You won’t like it, but there is a solid argument in favour of letting AIG pay its employees the controversial $165 million in bonuses. As inconvenient as it might sound, those bonuses fall under contracts that shouldn’t be so easily cast aside by the government. It’s one thing to try and renegotiate them, but to tear them up? Some argue it would lead down a slippery slope, spreading worry through the business community. Sure, the bonuses are going to people who helped create this mess, but they’re also the ones who will help fix it. Arguably, the problem would be made worse if they were driven from their jobs. Perhaps that’s why AIG offered the bonuses in the first place—it knew just how badly it needed to keep some of these people.