The proposal to set CEO compensation limitations will basically scuttle any bail out plan. After all, who wants to take on so much responsibility for a pittance? Yet there are members of Congress (who more frequently than we know, I’m sure, line their own pockets at public expense) who insist that this is some kind of moral fix to the credit crisis. I don’t really think so, but let’s just say that they’re right. If so there should be quid pro quo, something for something.

If Congress is going to step outside it’s Constitutionally defined powers by arrogating to itself the right to set wage controls in the private sector on moral grounds, then it should lead the way. It should create and pass a bill with the following basic points:

1. Congress’ pay should be cut to whatever it was in 1908.
2. Congress cedes the right to grant themselves pay raises to the people on a state by state basis for Senators and a district by district basis for Representatives.
3. Any increase in compensation shall be a ballot measure requiring a 2/3 majority.
4. No increase shall be more than a 5% increase.
5. A pay raise measure shall not be placed on the ballot more than once every two years whether or not if passes.
6. Congress shall not have the authority to repeal this law.
7. Members of Congress shall make their personal and business accounts, including non-monetary compensation available to the public at all times.

That should settle their hash.

Which are the worst kind when the chickens come home to roost and it turns out that you led the way.

But wait!  There’s more!