AIG Bonuses and Ronnie Reagan

A battle is shaping up that I think could be the defining moment for the Obama administration: taking back the AIG bonuses. It reminds me of a similar moment in Reagan's presidency when he fired all the US air traffic controllers. Reagan proved that he had a lot of nerve by doing that, the stakes were high. He also had public sentiment behind him. It paid off for Reagan and the Republicans, and symbolized the powerlessness of the unions. And also the empty threats from the supposedly highly trained controllers who warned that aircraft would fall from the sky if they hired strikebreakers to manage the air traffic.

From Wikipedia:

"August 5, Reagan fired 11,345 striking air traffic controllers who had ignored his order to return to work,[87] busting the union.[88] According to Charles Craver, a labor law professor at George Washington University Law School, the move gave Americans a new view of Reagan, who "sent a message to the private employer community that it would be all right to go up against the unions."[88]"

Obama has to take down the Wall Street Wizards to signal that the unregulated free market is over, the high CEO compensation is over, that the democratically elected government is not a puppet of the corporations.

I see this particular battle as possibly the most important test of the Obama administration. If he can't put a stop to single minded greed in this case, he will not be able to turn the economy around, and much of the stimulus package will be wasted by hundreds of thousands of people who take the attitude of "This money is mine, who cares about the economy".

I understand that many on the left are disappointed by things that Obama has not done, or not done enough. Personally, I would be happy with his presidency if he does nothing more than nailing the bonus issue. And don't tell me it's legally impossible. Just declare all the bonus takers as terrorists and waterboard them until they sign release documents giving the money back. The Republicans have already showed how little the law matters in getting what they want.