It comes as no surprise to me that apparently Wall Street’s just a job killer in Armani clothing.
As the financial sector continues to grow and absorb more and more wealth, they’re actually sucking the lifeblood out the economy by impoverishing their most valuable resource – customers. It’s no secret most of the wealth continues to rise to the top while grossly overpaid corporate CEO’s, aided by Congress, continue to hack away at unions and living wages for the average worker in order to please their already wealthy shareholders.
According to the Huff Post article:
The easiest cost to cut when you’re trying to squeeze out some profits is labor, particularly when business is bad. That’s one reason why workers’ share of national income falls most sharply during recessions. And it has been painfully slow to bounce back in this anemic economic recovery. Hence, corporate profits and the stock market are at record highs, while wages have mostly been flat since the Great Recession.
The problem with this business model is that eventually you run out of paying customers. Rising income inequality has become a drag on economic growth, the International Monetary Fund found recently. And the financial sector’s dominance has played a huge role in that inequality, maybe the biggest role.
The financial sector seems to be an unsustainable and a moral cesspool that’s absolutely out of touch with the long-term best interests of the global economy, their employees and their customers.
But I guess that doesn’t really matter if you’ve got all the money you’ll ever need stashed in some island tax haven.
Image: Wall Street Bull by BK and EP CC BY-NC 2.0