In Defense of AIG

Just a quick note.

(Disclaimer: I am not a fan of the bailout... I have 2 shares of AIG stock.)

AIG is in the sales business. That means it has to provide incentive to its sales people. Having sold insurance, I can tell you that a luxury trip to Puerto Rico one year was incentive to get my butt in gear for the next luxury trip.

I know that we gave money to this company, and we expect it to act responsibly... now. But acting responsibly means that it has to improve or maintain its sales force. It also has to continue training and education. If we put too much scrutiny on every activity this company does in the course of its business, without looking at whether that activity is beneficial to the growth and stability of the company, then we will run it down and lose our huge investment.

We should still be able to put certain concessions on the companies we give our tax dollars to, and, of course, we should expect them to act responsibly. For example, if we wind up bailing out Detroit, we can certainly require that the unions make huge concessions (like disbanding?). But the autoworkers wages and benefits add to the price of production. Sales people add to the profits. The better they sell, the better the company's bottom line.

So let them sell. Sell, baby, sell!