Current Events > Big Wall Street Banks are worried your pay raise is going to destroy the economy

(+) Yeah! (+)

Why did you post a screenshot instead of the article

The war for talent on Wall Street is costing big banks big bucks, but as companies race to hand out higher paychecks, some executives are warning it could spiral out of control and ruin the economy.
Bank of America reported Wednesday it spent about $36 billion on compensation last year, up by about 10%. Meanwhile, Goldman Sachs, which missed analysts expectations for its fourth-quarter earnings, reported spending a whopping 33% more on pay last year.
There is real wage inflation everywhere in the economy, everywhere, Goldman Sachs CEO David Solomon said during the banks quarterly earnings call with analysts on Tuesday.
And its not just the big banks that are paying higher wages. U.S. workers at private companies earned an average of $31.31 per hour in December, according to the latest monthly jobs report released weeks ago. Over the past year, workers hourly pay has increased by 4.7%. The average hourly wage for production workers was $26.61, up 5.8% year over year.

Which pay raise? I'd wish I would get one..

Oh, word?

Bank of America reported Wednesday it spent about $36 billion on compensation last year, up by about 10%.

Meanwhile, Goldman Sachs, which missed analysts expectations for its fourth-quarter earnings, reported spending a whopping 33% more on pay last year.

if people more money can buy more things

is that not good economy

Fuck instead of making 143% profit we are getting 119% now! We are fucked!

Just cut politicians pay by 60% and this nonexistent problem is solved.

There is real wage inflation everywhere in the economy, everywhere,

Its not that economists dont want to compensate workers, or see workers get real wage gains, but, Swonk said, once companies do that and inflation decelerates, you get much more wage push inflation. Thats when the overall prices of consumer goods and services increase as a result from a rise in wages.

Did anyone actually read the article or is everyone just responding to the outrage bait?

So if you want to bitch about inflation, these banks are on your side

Or you can pretend that everyone in finance is just a mustache twirling villain

Did anyone actually read the article or is everyone just responding to the outrage bait?

So if you want to bitch about inflation, these banks are on your side

Or you can pretend that everyone in finance is just a mustache twirling villain

these banks are on your side

If only it managed to keep up with the actual inflation

Did anyone actually read the article or is everyone just responding to the outrage bait?

So if you want to bitch about inflation, these banks are on your side

Or you can pretend that everyone in finance is just a mustache twirling villain

Did anyone actually read the article or is everyone just responding to the outrage bait?

So if you want to bitch about inflation, these banks are on your side

Or you can pretend that everyone in finance is just a mustache twirling villain

This is what economists worry about when they say wage hikes are sticky. The price of a used car can come back down, in other words, but not that annual raise your company just doled out. So theres a real concern that these higher wages could lead to entrenched inflation that goes beyond simply short-term supply-chain issues and pandemic-related problems. The fear is that companies get into a cycle where they are basing wages on the soaring consumer price index, which saw prices in December increase 7% over the past 12 months.

crypto adoption cant come fast enough

Big Wall Street Banks are worried your pay raise is going to destroy rich people's yachts

I have suspected g980 worked for like a hedge fund for awhile. This is rich.

Not sure its the one size fits all solution everyone thinks it is. Crypto has many benefits but it also has its own issues.

so do you guys think a sustained 7% inflation rate is desirable, or do you disagree with the economists?

Yes/no answers, that is literally the dichotomy here

so do you guys think a sustained 7% inflation rate is desirable, or do you disagree with the economists?

Yes/no answers, that is literally the dichotomy here