Wall Street Vs. Main Street - Bank Bonuses Beat Baristas, Bartenders

Tyler Durden's picture

Since 1985, banker bonuses have soared 890%, seven times the rise in the federal minimum wage, according to the Institute for Policy Studies, a left-wing think tank in Washington, D.C., which they proclaim has "contributed to racial and gender inequality" in America.

As MarketWatch's Quentin Fottrell reports, the average Wall Street bonus rose 1% to $138,210 last year, but fell 15% the year before, more than twice the median U.S. household annual income of $55,775. Bonuses in the New York securities industry were 1.6 times the combined annual earnings of all the nation’s 1 million-plus minimum wage workers in 2016.

 

The report, “Off the Deep End: The Wall Street Bonus Pool and Low-Wage Workers,” estimated that the 2016 bonus pool held enough dollars to lift all of the country’s 3.1 million restaurant servers and bartenders on a $15 per hour minimum wage, or 1.7 million home health and personal care aides, or all 3.2 million fast food preparation and serving workers. (The national minimum wage has risen only 116% over the last three decades, from $3.35 an hour to $7.25.)

We leave it to Nobel-prize-winning economist Angus Deaton to unravel this...the fact this economy isn’t what we’ve been told. In reality, it’s largely a rent-seeking based system, in which a meaningful percentage of the people who earn the most money are not only not adding value to society, they’re in fact parasites feeding off the general public. Market Watch reports:

Income inequality is not killing capitalism in the United States, but rent-seekers like the banking and the health-care sectors just might, said Nobel-winning economist Angus Deaton on Monday.

 

If an entrepreneur invents something on the order of another Facebook, Deaton said he has no problem with that person becoming wealthy.

 

“What is not OK is for rent-seekers to get rich,” Deaton said in a luncheon speech to the National Association for Business Economics.

 

Rent seekers lobby and persuade governments to give them special favors.

 

Bankers during the financial crisis, and much of the health-care system, are two prime examples, Deaton said.

 

Rent-seeking not only does not generate new product, it actually slows down economic growth, Deaton said.

 

“All that talent is devoted to stealing things, instead of making things,” he said.

 

Another prime example of rent-seeking is that the Medicaid is funding opioid prescriptions for low-income workers, Deaton said. The results are workers who are becoming addicted and overdosing while profits are going to the Sacker family which owns Purdue Pharma that makes OxyContin.

 

...

 

Raising taxes on the wealthy is not a good way to combat rent-seeking because it taxes the legitimate profits of entrepreneurs along with rent-seekers. 

 

“The key is to somehow find a way of tackling rent-seeking, crony capitalism, and corruption legal and illegal and build fairer, more equal society without compromising innovation or entrepreneurship,” he said.

As Michael Hudson explained so eloquently recently that bankers have become the top exploiters of the economy. Today, families entering the labor force are going to have to spend all their life working off the debt they need to take on in order to get an education to get a job, as well the debt they need to buy a car to drive to the job, and the mortgage debt for the house they need to live in to avoid rents going up and up. They have to spend all their life merely to pay their creditors, not to live better with more goods and services. Unlike serfdom, today’s workers can live wherever they want. But wherever they live, they have to produce value not only for their employers but also for the bankers. These bankers (and bondholders) are the main exploiters today. So finance capitalism is overwhelming industrial capitalism. Instead of industrial capitalism evolving into socialism as was expected, it is retrogressing back to neo-serfdom and neo-feudalism. This is mainly because of the inability to bring debt within the industrial capitalist system to evolve into a socialist economy. That is what neoliberalism is sponsoring by financialization and privatization.

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Bigly's picture

I thought decent WS bonuses were 7 figures....

turnball the banker's picture
turnball the banker (not verified) Bigly Mar 20, 2017 8:26 PM

Yeah just more bs to keep the goy in line.

venturen's picture

you forgot the bonuses are spread over thousands of people....the little people at Goldman aren't swimming it....they get small bonuses to average down the 8 figure bonuses

TeethVillage88s's picture

What Legislation could we possibly examine... please add some of your own.

Free trade agreements in force

Here is a list of free trade agreements of which the United States is part. In parentheses, the abbreviation, if applicable, membership if not stated before, and the date of coming into force are to be seen.

1985 - Israel-United States Free Trade Agreement (incl. Palestinian Authority)
1994 - North American Free Trade Agreement (NAFTA)
2001 - Jordan-United States Free Trade Agreement
2004 - Australia-United States Free Trade Agreement
2004 - Chile-United States Free Trade Agreement
2004 - Singapore-United States Free Trade Agreement
2006 - Bahrain-United States Free Trade Agreement
2006 - Morocco-United States Free Trade Agreement
2006 - Oman-United States Free Trade Agreement
2007 - Peru-United States Trade Promotion Agreement
2005 - DR-CAFTA; incl. Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and the Dominican Republic)
2012 - Panama-United States Trade Promotion Agreement
2012 - United States-Colombia Free Trade Agreement
2012 - United States-Republic of Korea Free Trade Agreement

https://en.wikipedia.org/wiki/United_States_free_trade_agreements

Short List "Trade Agreements"

1980 - Most favored Nation Status for China (J. Carter)
1984 - Caribbean Basin Initiative,
1994 - WTO Formed, Marrakech Agreement
1994 - War on Jobs, NAFTA,
1994 - Most Favored Nation Status for China Reinstated after Tianamen Square
1996 - Most Favored Nation Status for China Reinstated after Test
2000 - Permanent Normal Trade Relations with China and WTO Membership for China

Deregulation Plans, Transportation, Energy, Communication, Finance, Free Trade, Campaign Finance

1964 - Gulf of Tonkin, Congress gives up War Powers, Legislative Powers, and Budget Powers
1971 - Smithsonian Agreement, decoupled USD from gold standard,
1973 - War Powers Resolution (Allows 60 days combat/war without congressional declaration)
1974 - Federal Energy Administration Act of 1974 (R. Nixon)
1978 - Bankruptcy Reform Act of 1978,
1980 - Depository Institutions (J. Carter, followed by S&L Crisis, 5000 convictions, RTC)
1981 - Executive Order 12287, (R. Reagan, removed price controls on Petrol)
1982 – Garn–St. Germain Depository Institutions Act
1984 - Caribbean Basin Initiative (Free Imports to USA)
1985 - Plaza Accord
1987 - Louvre Accord
1992 - Energy Policy Act (H.W. Bush)
1994 - NAFTA, Deregulation of Trade, 3 Nations (W. Clinton)
1995 - Community Reinvestment Act, the Clinton Admin urged flexibility,
1995 - HUD advocated greater involvement of state and local organizations
1996 - Energy (W. Clinton, followed by ENRON Scandal)
1996 - Telecommunications Act (W. Clinton, cross ownership)
1997 - M2 Money Velocity Top
1998 - Clinton's Kosovo War (over 60 Days)
1998 - Brooksly Born Rejected on her concerns on OTC Derivatives
1998 - Derivatives expanded and were not regulated
1998 - Citicorp & Travelers Insurance Merger
1999 - Gramm–Leach–Bliley Act (Phil Gramm, followed by 2008 Financial Crisis)
1999 - bombing campaign in Kosovo
2000 - Commodity Futures Modernization Act of 2000 (P. Gramm)
2002 - Sarbanes-Oxley Act of 2002
2002 - McCain–Feingold Act, soft money unlimited
2005 - Energy Policy Act (subsidies, excluded clean air Water acts)
2005 - BAPCPA 2005
2005 - CAFTA-DR Ratified,
2008 - 2014 QE & LIRP/ZIRP (B. Bernanke, J. Yellen, B Obama)
2008 - 2012 H. Clinton Emails, known to Executive Branch
2009 - 2014 Continuing Resolutions
2010 - Citizens United v. Federal Election Commission
2011 - US combat in Libya (over 60 days)
2014 - lift ban on crude oil exports (Commodities Deregulation)

Timeline:

1930 - creation of BIS to ease foreign exchange rates for German Reparations?
1933 - decoupled from domestic gold standard,
1933 - Securities Act of 1933 and the Glass-Steagall Act (GSA),
1939 - 1945 World War II
1944 - Bretton Woods Conference (United Nations Monetary and Financial Conference)(to regulate the international monetary and financial order)
1944 - creation of International Bank for Reconstruction and Development (IBRD)(World Bank).
1944 - creation of IMF,
1956 - Bank Holding Company Act of 1956 (BHCA)
1963 - 1974 US-Vietnam War coupled with federal budget problems, Gold Standard,
1970s - "Big Three" Auditing Agencies Fitch Group, S&P's, Moody's regulate banks
1971 - Smithsonian Agreement, decoupled USD from international gold standard,
1985 - Plaza Accord
1987 - Louvre Accord

Someone posted on ZH a couple years ago:

https://www.youtube.com/playlist?list=PL9E8650DA66391797

We apparently have collateral accounts. I have no idea if this is true or hopeful thinking, or gatekeepers shepherding in the NWO with as few casualties as possible.
Combined International Collateral Accounts

by supreme600 https://www.youtube.com/user/supreme600

In 1875 the wealth and assets of the royal families and nations held under colonial rule were centralized into one combined account to be used to the benefit of all nations of the world. This is known as the Combined International Collateral Accounts of the Global Debt Facility. Within its ledger is Saint Germain's Foundation Divine and World Trust which is now worth $1 quatrodecillion dollars. This money will be used to bankroll NESARA and the prosperity funds.

Extensions of this agreement were expanded through international treaties, some of which are still classified as top secret, including:

Jekyll Island Treaty (1910)
The London Treaty (1920)
The Second Plan of the Experts (1929)
The Hague Agreement (1930)
The Far East Combined Depositories Agreement (1932 1945)
The Bretton Woods Agreement (1944)
The B.I.S. / Allies Agreement (1948)
The Green Hilton Agreement (1963)
The Schweitzer Conventions (1968)
The Election / Appointment of Sole Arbiter Agreements (1995)
The Washington Panel (1998)
The Treaty for Respecting the Rights (2003)

Bigly's picture

Wrong thread! ;)

One up..

TeethVillage88s's picture

oops, I posted something from NESARA... which I don't know a thing about. wow. How old am I?

https://en.wikipedia.org/wiki/NESARA

Check it out Chick.

We will learn together!

-

set of proposed economic reforms suggested during the 1990s by Harvey Francis Barnard. Barnard claimed that the proposals, which included replacing the income tax with a national sales tax (see also FairTax), abolishing compound interest on secured loans, and returning to a bimetallic currency, would result in 0% inflation and a more stable economy.

-

NESARA has since become better known as the subject of a cult-like conspiracy theory promoted by Shaini Candace Goodwin, doing business as "Dove of Oneness", who claimed that the act was actually passed with additional provisions as the National Economic Security and Reformation Act, and then suppressed by the George W. Bush administration and the Supreme Court. Goodwin's conspiracy emails have been translated into several languages and have a large following online.[1]

TeethVillage88s's picture

"David Rockefeller, the famous banker and philanthropist with the family name that controlled Chase Manhattan bank for more than a decade and wielded vast influence around the world in the world of finance,..."

- You can't get blood from a Stone... OR can you?

Is this what they did to Rome?

- Expand US Consumer Credit in 1970s after Nixon Shock
- Expand new Fiat through Money Supply after tying to Petroleum (Deflate the USD)
- Export Jobs, Manufacturing, Services, Tax-base of Wealthy & Corporations, Capital Flight
- Open Borders to Low Skilled Labor, Import STEM at Low Labor Rate, and Bring in 1 Million Legal Immigrants a year
- Create Housing Bubble, Defense Bubble, Junk Bond Bubble, Dot Com Tech Bubble, Another Housing Bubble, another Defense Bubble,...
- Tighten up Bankruptcy Laws
- Deregulate Energy, Oil, Food Commodities, Communications & Media, Banking, Utilities
- After Crisis, Bailout Corporations, Allow Central Bank to buy Bonds & Treasuries, Prevent Savers from Income from Savings, CDs, Treasuries with LIRP/ZIRP/NIRP
- Allow Insurance & Pensions to go unfunded, overproject Returns, and Fail without Safe Assets
- Do all that for 50 Years while Inflation turns USA into Europe, Health Care, Education, Housing, Infrastructure, Defense Weapons, Govt Salaries...
- Then invade or Overrun 7 Countries in 14 years!!

That is HOW YOU GET BLOOD FROM A STONE when a countries National Budget gets out of control in Vietnam War.

Just reflecting on a post.

Oh BTW, students: ask your Jewish professors why College/University Overhead is Sky High and they don't want all students to LEARN BUSINESS SKILLS AND ACCOUNTING PRIOR TO GRADUATION.

Oh BTW, students: ask your Jewish professors why College/University Admin Costs are like Bad Charities in the 1970s, UNICEF, MARCH OF DIMES, and they don't want all students to LEARN BUSINESS SKILLS AND ACCOUNTING PRIOR TO GRADUATION.

Oh BTW, students: ask your Jewish professors why 80,333 Bank Entities can Create Money out of THIN AIR, but 270 Million US Adults can't have the same power/share the power as a Commons? 270M/80333 = ratio of 8361 times more people than Bank Entities?

Oh BTW, students: ask your Jewish professors why the Clinton Foundation Overhead/Admin Costs are like Bad Charities in the 1970s, UNICEF, MARCH OF DIMES, and they don't want all students to LEARN BUSINESS SKILLS AND ACCOUNTING PRIOR TO GRADUATION.

https://fred.stlouisfed.org/series/USAFCBODCNUM
https://fred.stlouisfed.org/series/USNUM

Immigration by the Numbers -- Off the Charts (40 Million Legal Immigrants in the USA)
www.numbersusa.org
http://www.washingtonexaminer.com/census-immigrant-population-over-15-in...
http://cis.org/Camarota/Map-Number-Immigrants-Minor-Children

http://www.economist.com/node/21604509

Trade balance Current-account balance Currency units Budget balance Interest rates
Country latest 12 months, $bn latest 12 months, $bn % of GDP, 2016* Feb 16th, per $ year ago, per $ % of GDP 2016* 3-month latest 10-year government bonds, latest
United States -750.1Dec

Trade Balance negative 750 Billion.

Rockefeller commission:

https://en.wikipedia.org/wiki/United_States_President%27s_Commission_on_...
https://en.wikipedia.org/wiki/Pike_Committee ( final report of the Pike Committee was never officially published)
https://en.wikipedia.org/wiki/Church_Committee
https://en.wikipedia.org/wiki/Family_Jewels

HRH Feant's picture
HRH Feant (not verified) TeethVillage88s Mar 20, 2017 9:19 PM

TL:DR.

Wrong place to post your pre-written BS.

Fascal rascal's picture
Fascal rascal (not verified) Mar 20, 2017 8:42 PM

Jews vs muslims..

Draggin Americans into it..

Jews owne hollywood and all media..

Muslims immigrating and breeding like mad..

Then we have nutjobs crying civil war..

Non jew muslim nutjob fight!

Fuck them. Teach your little ones above and we are good.

Zerohedge: 60% spook, 30% prepper nutjob, 5% banker criminal, 5% American who cares about raising responsible, self sufficient kids.

E.F. Mutton's picture

If I hear "racial and gender equality" one more fucking time...

It's the WD-40 of Left Wing rationalizations.

JailBanksters's picture

I think your supposed to thank and bless the 1% of the 1% for giving the rest of us the chance to earn a pittance. So stop complaining.

 

 

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 20, 2017 9:49 PM

I think that this story is fake news.  We have to keep the minimum wage where it is or lower it, so the (((banksters))) can receive larger bonuses.

Mediocritas's picture

Michael Hudson is one of the very few economists who is actually worth listening to. I'm slowly reading his latest book (J is for Junk Economics) at the moment and it's great. ( https://www.amazon.com/dp/3981484258 )

One of the most important things to realise about Capitalism is that profit margins have an inverse relationship with market freedom. In a liberated market, the presence of huge profits attracts competitors who want a piece of the pie. As those competitors compete for sales, prices inevitably fall and so do margins. In other words, nothing destroys profits better than a free market. Competition between producers leads to better and cheaper products as they fight for sales.

Conversely, the presence of enormous profits, that are sustained over time, indicate market oppression, aka Monopoly. The monopolist uses every means available to suppress competition and maintain his margins. Consumers suffer high prices and a shitty product that has no pressure to evolve into something better. Every attempt by competitors to offer a superior product (or service) is smashed down by the powerful monopolist using the weapons at his disposal.

Ironically, it is the "free market" (as defined by Neoliberalism) that gives rise to the oppressed market. In fact, a large amount of regulation is required in order to prevent monopoly (which is the most extreme form of rent-seeking through the creation of artificial scarcity). A well functioning capitalist democracy should identify areas of sustained high margins, uncover the forces that are enabling monopoly there and regulate to destroy it (ie, regulate to enhance competition). All too often, the government itself is complicit in the monopoly, so expecting the government to resolve the problem is rather naive unless democracy is in a very healthy state with voters well informed. Unsurprisingly, one of the first ambitions of the Monopolist is to weaken democracy and promote the ignorance of the populace (bread and circuses).

The "golden era of capitalism" that followed WWII was notable for its more appropriately regulated capitalism. The phase change that occurred with Reagan and Thatcher saw the transition to neoliberal capitalism (deregulated capitalism), enabling the formation of monopolies all over the place. I recommend this book on the matter: https://www.amazon.com/Rise-Fall-Neoliberal-Capitalism/dp/0674725654

And the next time you encounter someone who is painting a black and white case that "capitalism is evil" or "capitalism is righteous", well, consider that they're full of shit. Reality is more nuanced than that.