If you’re like me, when you hear the word Czar you think Russia. Maybe the word dictator comes to mind as well. For the life of me, I can’t understand why czar is now associated with the car industry and the finance industry. The car czar and compensation czar are terms coined by the media. As far as I am aware, the Obama administration has not used these terms. However, the Obama administration did create these arbitrary positions for which the media found no better word than czar. Doesn’t that bother anyone else? Why do we have government appointed positions with all power over an industry or company? Someone who determines what is excessive compensation, excessive risk, who the CEO of GM and Chrysler should be, what the terms of bankruptcy will be, which lenders get paid what amount… Can you imagine having this guy running GM?
Last 3 posts by Jason
- Reply To All - March 16th, 2010
- You Can't Make This Stuff Up - February 19th, 2010
- Washington Gridlock - February 11th, 2010
Czar may be a media term, but I like it better than “Special Master of Executive Compensation”!
Give me a break
What concerns me most about the czar positions is that I see them as an attempt of the executive branch to usurp or override legislative powers. The executive branch cannot perform certain functions unless authorized and funded by Congress. The Czars don’t seem to be limited by this same constitutional function as they have been given “broad powers” by the President.
Think about it - It look the Congress trying to pass a bill to tax the “bailout bonuses” at 90%, but all Obama had to do was create a new position and he has potentially done the same thing on the front end without a single action of Congress.
While I’m on the topic of illegal, how did the rights of shareholders get overridden? I don’t recall them voting for new board members who in turn voted for compensation limits. I get these companies took TARP money, but when did that give the government the right to act all-powerful?
Since Bush was criticized so heavily for overstepping his constitutional powers, maybe this is the current administration’s way of doing the same without being directly blamed.
The creation of the Tsars is just an attempt by the White House to consolidate more power there, power that does not have to answer to congress as members of the cabinet do. All under the table deals will pass through them and the cabinet heads will have no knowledge of these actions. This has been well thought out.