If you're barely getting by right now paying for health insurance, your mortgage, and other bills with your weekly unemployment insurance, the prospect of AIG execs pocketing $165 million of our money in bonuses probably doesn't sit so well. And it shouldn't. If you're like many, you've probably selected to have 10% of your unemployment insurance withheld for federal taxes, taxes that will help pay for the economic bailout of companies like AIG.
In a time when individuals and multinational corporations alike must scale back expenses, reconsider their bottom lines, and reassess spending habits, bonuses of this nature seem beyond indulgent or excessive, they seem almost criminal. Of course, AIG is contractually bound to fulfill certain obligations to its employees, but in a time where they received an almost unprecedented government bailout, AIG could have done much more to massage its public relations by requesting employees to forego bonuses in light of the current economic conditions. So far, AIG employees have given back at least $50 million. It's a start, but I'm still wondering why AIG didn't address this issue before bonuses were paid and had to be returned.
On the other hand, AIG employees who were entitled to these bonuses have been let down by their company and could have had legal action against AIG had the bonuses not been paid. Instead, AIG paid the bonuses and forced their employees into the awkward position of voluntarily returning them or looking like prize idiots. Highly unfair and also potentially depriving their employees of any legal action against the company.
All in all, the situation has been handled rather poorly, demonstrating AIG's use in quite poor taste of public funds and inability to come through on its obligations to its employees.
More information available at:
http://www.nytimes.com/2009/03/24/business/24bonus.html?_r=1&hp
Showing posts with label Economic stimulus. Show all posts
Showing posts with label Economic stimulus. Show all posts
Monday, March 23, 2009
Wednesday, March 11, 2009
Fending Off Financial Fears
With unemployment comes a whole host of other fears, including extreme financial ones. While I was figuring out what was next, how would I pay the bills? Of course, my mind jumped immediately to the worst case scenario in the financial world: bankruptcy, losing my place to live, losing my car, and on and on. Once my mind hopped on this train, it was hard to stop it. Occasionally, I still hop back on it. It's never fun. You may be familiar with this feeling; I know that there are many American families struggling with it right now.
To combat my fear of financial insecurity, I jotted down a quick plan. My first numbers just wouldn't work, so I had to cut back more. With Obama's stimulus plan, things looked slightly less bleak, at least for awhile. Once I had a plan for several months, I started to future-trip. What about six months from now? What about next year? How would I pay for anything? Freak-out #573.
My spending habits changed drastically, along with millions of other Americans who are now similarly situated. I ate out less and cooked at home more. It made a small difference. I'd lived outside of my means before, and this habit could catch up with me quickly, if I didn't intentionally proceed with care.
The bottom line was this: I could remain as I was and freak out, or I could change. I opted for the latter and made a plan that would allow me to get through six or so months. I mapped out my prior spending habits and cut them in half, budgeting for necessities and cutting out the excess (of which there was not much, but certainly some). I made some small adjustments that ultimately added up, like cutting cable altogether and relying on the library for all of my books, rather than purchasing new, or even used ones. I paid one bill at a time.
I made a list of everything that I HAD, not a list of everything that I didn't (which I used to). In fact, I make a list every morning, which reminds me of how many wonderful aspects there are to life. When I was working, I often overlooked these, too busy to take the time to mark them down or remember, always aiming for more, more, more.
As I scaled back, I began to see a path through my financial fears. It started with becoming even more educated about my current financial status and the state of our economy (with the help of resources from the likes of Suze Orman). Continuing on this quest, taking action to become educated and put my financial plan into action have cut down on the fear that may crop up.
Part of the economic downturn seems to be a collective call to us all to reassess our relationships with money and spending. For me, I often don't pay attention and change until I am forced to. Despite the panic, this is an opportunity to reassess and reshape financial goals and patterns, alongside our government and corporations.
With a slightly different mindset, I was ready to take on different issues, such as what to do with my life next!
To combat my fear of financial insecurity, I jotted down a quick plan. My first numbers just wouldn't work, so I had to cut back more. With Obama's stimulus plan, things looked slightly less bleak, at least for awhile. Once I had a plan for several months, I started to future-trip. What about six months from now? What about next year? How would I pay for anything? Freak-out #573.
My spending habits changed drastically, along with millions of other Americans who are now similarly situated. I ate out less and cooked at home more. It made a small difference. I'd lived outside of my means before, and this habit could catch up with me quickly, if I didn't intentionally proceed with care.
The bottom line was this: I could remain as I was and freak out, or I could change. I opted for the latter and made a plan that would allow me to get through six or so months. I mapped out my prior spending habits and cut them in half, budgeting for necessities and cutting out the excess (of which there was not much, but certainly some). I made some small adjustments that ultimately added up, like cutting cable altogether and relying on the library for all of my books, rather than purchasing new, or even used ones. I paid one bill at a time.
I made a list of everything that I HAD, not a list of everything that I didn't (which I used to). In fact, I make a list every morning, which reminds me of how many wonderful aspects there are to life. When I was working, I often overlooked these, too busy to take the time to mark them down or remember, always aiming for more, more, more.
As I scaled back, I began to see a path through my financial fears. It started with becoming even more educated about my current financial status and the state of our economy (with the help of resources from the likes of Suze Orman). Continuing on this quest, taking action to become educated and put my financial plan into action have cut down on the fear that may crop up.
Part of the economic downturn seems to be a collective call to us all to reassess our relationships with money and spending. For me, I often don't pay attention and change until I am forced to. Despite the panic, this is an opportunity to reassess and reshape financial goals and patterns, alongside our government and corporations.
With a slightly different mindset, I was ready to take on different issues, such as what to do with my life next!
Saturday, March 7, 2009
Considering new directions
Before diving into my next career direction, the time I took to list all of the aspects of my prior job and career that I enjoyed and those that detracted from my overall well-being was well spent. It was easy to move away from my prior career; however, moving in a new positive direction was what I struggled with most. The entire world seemed to be in an upheaval, uncertain of what our collective direction would be.
At first, I made a list of characteristics that I wanted in my career (intellectual challenge, changing circumstances, entreprenurial development, to name a few). Keeping it general, I then listed everything that sounded fun and interesting that I'd ever wanted to do. It included things that I told no one about as they might deem them insignificant; however, to me, ignoring these small things was what led me to what I was doing before. Then, I began some informational interviews to glean information from professionals in the areas that looked interesting.
Being laid off was an opportunity to change my perspective and how that perspective manifested itself on a daily basis. It's taken shape slowly and is still expanding.
At first, I made a list of characteristics that I wanted in my career (intellectual challenge, changing circumstances, entreprenurial development, to name a few). Keeping it general, I then listed everything that sounded fun and interesting that I'd ever wanted to do. It included things that I told no one about as they might deem them insignificant; however, to me, ignoring these small things was what led me to what I was doing before. Then, I began some informational interviews to glean information from professionals in the areas that looked interesting.
Being laid off was an opportunity to change my perspective and how that perspective manifested itself on a daily basis. It's taken shape slowly and is still expanding.
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