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March 15, 2015

Wall St. bonuses dwarf minimum wage earnings

New study shows huge gap between the two

Study Income inequality
Data Stock/for PhillyVoice

The study says...

The Institute for Policy Studies recently released a report that reveals some staggering numbers on bonuses earned by employees at Wall Street banks. 

Entitled "Off The Deep End," the study crunched the numbers on those bonuses and compared them to the total earnings of all full-time minimum wage workers in 2014. The gap between the two is drastic:
Gap between wall st. bonuses and minimum wage earners

The study notes that those giant bonuses have only been getting bigger:

Wall Street bonuses rose 3 percent last year, despite a 4.5 percent decline in industry profits. The size of the bonus pool was 27% higher than in 2009, the last time Congress increased the minimum wage. 

The author, Sarah Anderson, directs the Global Economy Project at the Institute for Policy Studies. She goes on to advocate for not only regulating those bonuses of Wall Street bankers but also raising the minimum wage, explaining why and how both actions would have a positive effect on the economy:

...every extra dollar going into the pockets of a high-income American only adds about $0.39 to the GDP. By contrast, every extra dollar going into the pockets of low-wage workers adds about $1.21 to the national economy. 

bang for the buck
Raising the minimum wage has been a key issue for several groups in Philadelphia, such as 15 Now Philly, which advocates raising it to $15 an hour.