My stomach is growling, the clock on the wall says twelve o’clock, and I am the only one in the office… It must be lunch time, and time for another rendition of my lunch time econ talk. Topic of discussion: Bonuses. If you are anyone that watches the news, and by anyone I mean you, this topic most blatantly is in reference to the AIG drama and there decision to hand out our tax dollars to managers as bonuses.


Let us first begin with the concept and working definition of what a bonus is… Because let’s face it obviously the correct term is not in the vocabulary of Edward Liddy or anyone running the show at AIG. Now I am not going to quote ‘Merrian Webster’ or the ‘Encyclopedia’ but instead I will approach the term from my own experiences and working definition with it. So, let’s dive on in!


If you are anybody you have most likely played some form of video game whether it be the father of video games ‘Pong,’ or Tony Hawks American Wasteland you know what a bonus is. It is either you have scored so many points that the game rewarded you with an extra level or extra points to make you the ultimate winner. These ‘bonuses’ are most often rewarded when you have either accomplished the complete completion of a level or completely dominated a friendly in a one on one competition. So, bonuses are give when some form of success is reached within a given context like video games? Yes!


Now, time to apply our newly develop idea of the term ‘Bonus.’ Telemarkeding sales has so many denotations that saying that you worked for one can be a little embarrassing to some. (Note that I said some, and not all) In the telemarkeding environment there are usually bonus ensentives for doing well. From my experience I received cash bonuses for selling the most crap to people who really didn’t need it. Good selling (or making the company money) = cash bonuses (or more drinks at the bar that night to make me feel better about persuading people to buy things they really don’t need (joke)). So whenever I performed well at my job, which enivetably meant I was contributing to the companies success, I was rewarded with cold hard cash or known as a Bonus.


Now, AIG. Obviously the managers at AIG deserved bonuses because they were performing so well that the company itself had to ask for financial help from the government. Wrong!! The company was and still is crumbling in on itself. CEO Edward Liddy claims that the bonus was given in efforts to keep their employees. Well if a company was slowly falling doesn’t anyone think that maybe management had some contribution to the companies demise? Smart move Liddy. Maybe they should leave, I’m sure if he placed a Help Wanted sign outside their doors a mile long line would form to apply for the new vacant positions. Possible some new candidates that would deserve a bonus. But who knows?


So to conclude, what did Liddy do wrong? 1. He used government help money as bonuses 2. he gave bonus which enivetably says, “He manager dude, here is some extra money for doing such a good job destroying the company. Please stay, don’t quite, we need your lack of positive contribution to the company so we can constantly rely on help from the government.” 3. He is sending a message to the population that laziness will be rewarded. Good job libbly, give yourself a pat on the back.


Twelve forty two, time to make coffee and get back to work.