Wall Street Flush With 17% Bonus Increase, While Rest of the Country Suffers
February 24, 2010
(ChattahBox)—Wall Street is back on its feet after nearly tanking two-years ago. With an infusion of taxpayer-funded federal bailouts to prevent their risky investments from taking down the whole economy, the big banks and financial firms are back to paying out huge bonuses, which contributed to the near collapse of the economy. Besides the recipients of the estimated $20.3 billion in bonuses, the City of New York is also happy to receive the tax revenue from the big pay days. State comptroller, Thomas P. DiNapoli, noted that the 2009 bonuses jumped 17 percent from 2008. But even that increase is low, because it doesn’t account for the non-cash company stock portion of bonuses, which tips the overall actual increase to 30 percent.
According to a report in the New York Times, the Wall Street pay day added $600 million to the state’s coffers and $75 million to New York City’s.
But is Wall Street’s success also translating into jobs?
“The comptroller, Thomas P. DiNapoli, acknowledged the divide between the financial industry and other professions, but said that the financial industry’s new prosperity would ultimately trickle down to the rest of the New York economy. His office estimated that the industry could exceed $55 billion in profits last year.”
Although Wall Streets slashed about 31,500 jobs, since 2007, the industry has been slowly hiring. And DiNapoli claims that for every job created on Wall Street, three more are created elsewhere in the state’s economy.
But what about the rest of the country?
“After the billions in taxpayer bailouts, the numbers highlight the divide between Wall Street — where the recovery has been stronger than Mr. DiNapoli’s office had expected a year ago — and the rest of America, where growth is slow and unemployment remains high.”
That’s fine that the bonus payouts are adding to New York’s coffers, but the rest of America is hurting. And there is something obscene about a federally bailed out industry that nearly destroyed the entire economy with their greed, now gloating over billions of dollars in bonuses.
See The New York Times for more.