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Try not to think about this while on the job.
A new report from Inequality.org found that the federal minimum wage for workers would be astronomically higher were it to increase at the same pace as Wall Street bonuses over the years.
“Since 1985, the average Wall Street bonus has increased 1,743 percent, from $13,970 to $257,500 in 2021 (not adjusted for inflation). If the minimum wage had increased at that rate, [an hour’s pay would be] $61.75 today, instead of $7.25,” according to the data.
The theoretical number — eight and a half times larger than its current value — would make ends meet much easier for many Americans nowadays. The federal minimum wage has been $7.25 per hour since 2009.
Beyond that shocking figure, the Inequality.org report also indicated what recent bonuses could have done for the job market. “The total bonus pool for 180,000 New York City-based Wall Street employees in 2021 was $45 billion — enough to [bankroll] more than 1 million jobs paying $15 per hour for a year.”
The research also found that despite the pandemic, 2021 was a banner year for bonuses in lower Manhattan.
“The average Wall Street bonus of $257,500 in 2021 was far higher than any year since the 2008 financial crash. The second-highest was the 2017 average bonus of $209,046, adjusted for inflation. These bonuses come on top of base salaries, which averaged $254,000 in 2020.”
That means bonuses have increased by more than 20% since 2013, “far above the 7 percent annual inflation rate.”
The news of high Wall Street bonuses comes at a time when many suffered financial losses.
Meanwhile, “average weekly earnings for all US private sector employees rose by only 2 percent between January 2021 and January 2022,” the report noted.
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