Beware of Corporations Bearing Gifts

[genxlib]

Whenever a company offers you something, be on the lookout because they have far more to gain from you. Whether it be the old-time toaster for a new bank account or an unbelievable promotional offer. There is always a downside.

Remember that when we receive news of multiple corporations giving employee bonuses because of the tax cut. We have already heard from Comcast, AT&T and some banks.

At the very least, just remember how much that "free" toaster is going to cost you in bank fees down the road. Remember how much that "low introductory rate" is going to cost you in higher interest later. And so it is with this. Remember how much this is going to cost you long after the bonus is gone.

Beyond that, I am suspicious of this news for two reasons (well three if you count that I am naturally cynical)

First, the timing of this is fishy. No corporation decides to spend hundreds of millions of dollars instantaneously like that. It takes board meetings and votes and budgeting. So all of this "spontaneous" magnanimity is really cold and calculated deal making. The timing makes me believe that these corporations were lobbying with a promise to deliver this news in the wake of the bill. The only other thing that makes sense is that these are normal year end bonuses that they have cynically renamed to support the bill.

Second, the consistency of this news across several companies in both timing, value and even language makes me believe there was some sort of coordination going on. Would you put it past this Congress/Administration to be making private calls to corporations telling them they needed to cushion the landing for this flop? After all, the payday will still come in down the road.

Both of these thoughts lead me to believe that all of this was worked out ahead of time. I am not sure which party offered the "quid" and which party brought the "quo" but the whole thing stinks of manipulation. I would like to see a good business reporter get behind the scenes on this one.

[Marengo]

1. If the recipients of these bribes (bonuses) have any decency, they will reject them outright.

This will be an excellent test of who is on the right side of history.

[dembotoz]

2. One time bonus vs pay raise

Bonus spent and gone
Pay raise continue

State the obvious but sometimes folks need to be reminded

[rogerashton]

3. They were already under pressure to recruit more employees,

thanks to 8 years of Obamanomics. This is catch-up.