Excessive Wages in the financial sector

There was little talk of excessive wages prior to the crash of financial assets in 2008. Now it is the talk of the town. Well someone should have taken a look at this chart.


If you look close you will notice that wages in the financial sector were high way back in the 1920s. Wall street might want to make some argument about computers, technology and education as the reason behind the enormous bonuses that were paid out on Wall Street. But, this chart shows an uncanny parallel to a period where there were no computers.

If you look close you might come to a rather simple conclusion: greed is not good and it corrects itself the old fashioned way.

Side note: bonuses of Wall Street reached more than $200,000 per employee in 2007. I can assure you from my days on Wall Street, only a minuscule amount of that bonus money trickled down to the rank and file workers.

Chart

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