Posts Tagged ‘Wall Street Bonuses’

Wall Street bonuses outweigh minimum wage pay

March 20, 2017

Most Wall Street activity is devoted to diverting money from one person’s pockets to another person’s pockets.   Most minimum wage workers do things that are directly beneficial to people.

The past financial crash was worse because Wall Street bankers and financiers took risks with other people’s’ money.   The coming financial crash will be worse for the same reason.

The Wall Street bonus system is an incentive to take risks, because the managers get to keep the bonuses when they win and they do not have to give them back when they lose.

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Wall Street bonuses vs. U.S. minimum wages

March 17, 2015

income-inequality-2.0A study by the Institute for Policy Studies indicates that the total amount of bonuses—not salary, but just bonuses—paid to 168,000 employees of Wall Street financial firms in 2014 was more than double the total income of 1 million Americans who worked full time at minimum wage.

The $28.5 billion paid in bonuses would be more than enough to raise wages of tens of millions of American workers to $15 an hour, the IPI said.

The function of Wall Street investment banks is to find worthwhile companies and provide them with the capital they need to thrive and grow.  Doing this job well would be important, but most Wall Street activity is devoted to repackaging existing investments and selling them.   A recent study says that only a quarter of Wall Street revenue comes from investment in the real economy.

So arguably the 1 million minimum-wage workers create more value than the wealthy Wall Streeters.  At least they don’t create speculative bubbles that crash the economy.

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