However, I’m still surprised how basic and powerful people’s resentment of the other half can be. Just recently I was reading a post over at marginal revolution and was stunned by how much the desire to do something about executive salaries was based in nothing more than dislike of the fact these people were so well paid (as opposed to some harm these salaries were causing to others or equivalently the gains that could be made from redirecting the salaries).

My understanding of the economics in play with regard to the bailouts and such is rusty, but I really like this analogy.

Populism can be an ugly thing. This AIG bonus issue feels just like the several weeks of rabbling over drilling in ANWR. People will gobble up the topics of the day from the talking heads on TV, but don’t bother to step back and do some critical thinking. The sanctity of contract law is just not something the average person will stop to consider.

I think it’s also an issue of people just losing perspective. Issues surrounding “the other half” always cause an irrational uproar. They’re pissed about the fat cats redecorating their offices with a hundred grand of company money, but forget that their own lifestyles can be seen in the same light by a lot of people around the world. “Those assholes spend hundreds of dollars on cable while we’re sleeping in a mud hut.”

Preventing corrupt and unfair practices is certainly a worthy cause, but it’s not nearly as easy as it might seem to figure out what’s fair and what isn’t.